Sensex surges 965 points as blue-chip stocks rally across sectors
- Sensex surged 965 points in Friday's trade, closing sharply higher.
- Blue-chip stocks, particularly in banking and IT, drove the rally.
- All BSE sectoral indices ended in positive territory.
Indian stock markets closed sharply higher on Friday, with the BSE Sensex jumping 965 points. The rally was powered by sustained buying in blue-chip stocks across sectors.
The 30-share index ended at 62,345.67, up 965.42 points or 1.57 per cent from the previous close. The broader NSE Nifty also rose 285.60 points to settle at 18,567.45.
Banking and IT stocks lead the charge
Banking shares were among the top gainers. HDFC Bank, ICICI Bank and Kotak Mahindra Bank each rose between 2 and 3 per cent. The BSE Bankex climbed 2.1 per cent.
Information technology stocks also saw strong demand. Infosys, TCS and Wipro added 1.5 to 2.2 per cent, tracking positive cues from global tech peers.
All sectors in the green
No sector was left behind. The BSE Auto index rose 1.8 per cent, led by gains in Maruti Suzuki and Mahindra & Mahindra. Metal stocks, including Tata Steel and Hindalco, advanced 2 per cent.
The broader market mirrored the bullish sentiment. The BSE Midcap and Smallcap indices each gained around 1.5 per cent, indicating broad-based buying.
What drove the rally
Market participants attributed the surge to short-covering ahead of the weekly derivatives expiry. Traders also cited positive global cues, with Asian markets trading higher on Friday.
Foreign portfolio investors turned net buyers in the cash market, adding to the momentum. Provisional data showed they purchased equities worth Rs 1,250 crore on Thursday, the highest in a week.
Domestic institutional investors too remained active, with net buying of Rs 850 crore in the preceding session.
Nifty holds above 18,500
The Nifty 50 index managed to close above the psychological 18,500 mark for the first time this week. Analysts said the level could act as a support in the near term.
Market breadth was positive. On the BSE, 1,987 stocks advanced while 1,123 declined. About 180 stocks hit their 52-week highs during the session.
Volatility remained low. The India VIX, which measures expected near-term volatility, eased 3 per cent to 14.2.
Traders now await the next round of quarterly earnings from major companies next week. The market's direction will also depend on global cues and the movement of crude oil prices.