Indian equity markets experienced a significant upswing on Friday, marking the second consecutive session of gains for benchmark indices. The 30-share BSE Sensex surged 827.57 points, or 1.08 per cent, to close at 77,569.39. Similarly, the NSE Nifty50 index gained 244.10 points, or 1.02 per cent, ending the day at 24,206.90.
This robust performance led to a substantial increase in investor wealth, with the combined market capitalization of BSE-listed companies rising by an estimated ₹5.80 lakh crore. The total market cap reached ₹481.75 lakh crore, up from ₹475.94 lakh crore in the previous session.
Broader Market Outperforms
The broader market segments continued to outperform the benchmark indices. The Nifty Midcap 100 index advanced 1.40 per cent, while the Nifty Smallcap 100 index saw an even stronger gain of 1.55 per cent. Key sectors contributing to the Sensex's rally included IT, realty, and metal stocks.
Major companies that significantly bolstered the Sensex's performance included Reliance Industries Ltd (RIL), ICICI Bank Ltd, HDFC Bank Ltd, Axis Bank Ltd, Infosys Ltd, State Bank of India (SBI), Bajaj Finance, Mahindra & Mahindra (M&M), and Bharat Electronics Ltd (BEL).
Expert Outlook and Key Factors
Vinod Nair, Head of Research at Geojit Investments, noted that after a volatile week initially impacted by escalating tensions in West Asia and rising crude oil prices, the market staged a broad-based recovery. This turnaround was primarily fueled by encouraging Q1 business updates from the banking and IT sectors, improving sentiment ahead of the upcoming earnings season. Nair also highlighted that mid- and small-cap segments outperformed large-caps during the week.
Looking ahead, investors will be closely monitoring Q1 FY27 earnings reports, India's retail inflation data, US core inflation figures, and commentary from Federal Reserve officials. Nair suggested that easing inflationary pressures and slowing global growth could strengthen expectations for a more accommodative monetary policy stance.
Ajit Mishra, SVP (Research) at Religare Broking, attributed the positive market undertone to a steady start to the Q1 earnings season, with Tata Consultancy Services' (TCS') results providing relief. He also cited continued softness in crude oil prices and a stable rupee as supporting factors, though geopolitical developments remain a watch point.
Technical Levels and Investment Strategy
From a technical perspective, Mishra indicated that a sustained move above 24,150 could pave the way for the Nifty50 to reach the 24,400-24,600 range. Immediate support levels are seen at 24,000, followed by 23,800. Mishra advised a stock-specific, buy-on-dips strategy, favoring sectors such as banking, pharma, and realty due to their relative strength.