Sensex Closes 964 Points Higher, Tech Stocks Lead Broad Rally
- Sensex surged 964 points, Nifty closed above 24,300.
- IT, auto, and banking stocks were the top gainers.
- Market rally driven by positive global cues and strong earnings expectations.
Markets End Week on a Strong Note
Indian equity benchmarks closed sharply higher on Friday, extending gains for the second consecutive session. The BSE Sensex surged 964 points to settle above the 79,500 mark, while the NSE Nifty 50 climbed 285 points to close above 24,334.
The rally was broad-based, with all major sectoral indices ending in the green. The gains were led by information technology, auto, and banking stocks, which collectively added over 600 points to the Sensex.
Tech Stocks Lead the Charge
The IT sector was the top performer, with the Nifty IT index jumping over 3%. Heavyweights like Infosys, TCS, and HCL Technologies rose between 2.5% and 4%, tracking a strong rebound in global technology stocks. Market participants attributed the move to bargain buying after recent corrections and optimism around upcoming quarterly earnings.
Automobile stocks also saw strong buying interest, with Maruti Suzuki, Mahindra & Mahindra, and Tata Motors gaining 2-3% each. The rally in auto stocks came on expectations of strong demand recovery and easing input costs.
Banking and Financials Join the Rally
Banking and financial stocks added to the momentum. HDFC Bank, ICICI Bank, and State Bank of India rose between 1.5% and 2.5%, pushing the Nifty Bank index higher. Traders cited short covering ahead of the weekend and positive cues from global peers as key drivers.
The broader market also participated in the rally, with the BSE Midcap and Smallcap indices rising over 1% each. Market breadth remained positive, with over 2,000 stocks advancing on the BSE compared to 1,200 declines.
What Drove the Rally?
Analysts pointed to three main reasons for the sharp move. First, global markets rallied overnight on easing concerns over US interest rates, which boosted risk appetite. Second, expectations of strong quarterly results from Indian companies, especially in the IT and banking sectors, triggered buying. Third, foreign portfolio investors turned net buyers after a period of selling, providing further support.
Investors are now looking ahead to key earnings from index heavyweights next week, including Reliance Industries and HDFC Bank, which could set the tone for the market in the near term.
The rupee also strengthened against the US dollar, closing at 83.45, helped by the equity rally and sustained foreign inflows.
Market participants will watch global cues and domestic earnings flow for further direction. Analysts expect volatility to remain, but the broader trend stays positive as long as the Nifty holds above the 24,000 mark.