Heavyweight stocks power Sensex, Nifty to biggest gains in over a month

Markets surge on broad-based buying

Indian equity benchmarks closed sharply higher on Friday, logging their biggest single-day gains in over a month. The BSE Sensex jumped over 900 points, while the NSE Nifty 50 climbed past the 24,800 mark, driven by a strong rally in heavyweight stocks.

Market participants attributed the surge to heavy buying in index heavyweights such as Reliance Industries, HDFC Bank, ICICI Bank, and Infosys. These stocks together accounted for a major portion of the gains in both indices.

Banking and IT lead the charge

The banking sector was among the top contributors, with the Nifty Bank index rising nearly 2 per cent. HDFC Bank and ICICI Bank were the biggest movers, gaining over 2 per cent each. Private sector lenders saw broad-based buying, while public sector banks also joined the rally.

Information technology stocks also had a strong session. Infosys and TCS climbed over 1.5 per cent each, supported by positive sentiment in global tech markets. The Nifty IT index ended the day up more than 1 per cent.

Energy stocks add to momentum

Reliance Industries, the most heavily weighted stock on the Nifty, rose over 2 per cent, contributing significantly to the index's gains. Oil and gas stocks were buoyed by a recovery in crude oil prices and expectations of strong demand.

Other heavyweights such as Larsen & Toubro and Hindustan Unilever also traded in positive territory, adding to the overall market momentum.

Global cues and domestic flows support rally

Positive cues from Asian and European markets also supported domestic sentiment. US futures pointed to a higher open, which further boosted investor confidence. Foreign portfolio investors turned net buyers in the cash market after a prolonged selling spree, while domestic institutional investors continued to accumulate stocks.

Traders said short covering ahead of the weekly derivatives expiry added to the upward bias. Volatility eased, with the India VIX falling below 14, indicating reduced fear among market participants.

Breadth remains positive

The broader market also participated in the rally, with the BSE Midcap and Smallcap indices rising over 1 per cent each. On the BSE, advancing stocks outnumbered decliners by a ratio of nearly 3:1, reflecting broad-based buying interest.

Analysts said the market is now eyeing the upcoming quarterly earnings season and global central bank policy decisions for further direction. The Reserve Bank of India's stance on interest rates and the US Federal Reserve's commentary will be key factors to watch.

Market participants will monitor next week's trading for signs of sustained momentum. The ability of the Nifty to hold above the 24,800 level will be crucial for further upside.