Sensex surges 965 points, Nifty closes above 24,300 in strong market rally

Indian equity benchmarks closed sharply higher on Friday, with the BSE Sensex surging 965 points and the Nifty50 ending comfortably above the 24,300 mark. The rally was broad-based, with buying pressure visible across most sectors.

Markets open strong, momentum builds through the day

The Sensex opened with a gap-up and maintained its upward trajectory throughout the session. By the closing bell, it had added 965 points. The Nifty50 followed a similar pattern, breaching the 24,300 level and holding onto those gains.

Traders said positive global cues and fresh buying by domestic institutional investors drove the upmove. Volumes were higher than the recent average, indicating strong participation.

What drove the rally

Market participants pointed to a combination of factors behind the surge. Easing concerns over global interest rates and a rebound in crude oil prices stabilised sentiment. Domestic economic data also provided a boost.

All sectoral indices ended in positive territory. Banking, auto, and IT stocks led from the front. The BSE midcap and smallcap indices also rose, reflecting broad market optimism.

Broader market in sync

The rally wasn't limited to large-caps. Midcap and smallcap stocks also saw strong buying interest. The BSE midcap index rose over a percent, while the smallcap index climbed nearly one-and-a-half percent.

Market breadth remained firmly in favour of advances. On the BSE, more than 2,000 stocks advanced against around 900 declines. This suggested that the rally had genuine breadth and wasn't just a few heavyweights pulling the index up.

Foreign portfolio investors have been net buyers in recent sessions, adding to the positive undertone. However, their activity on Friday will be known after market hours.

Outlook for the coming week

With the Nifty holding above 24,300, traders will watch if the index can sustain these levels. Any breakout above the next resistance could attract further buying. On the downside, 24,000 is seen as a key support.

Global cues, especially the US Federal Reserve's policy stance and crude oil prices, will remain in focus. Domestic earnings season will also influence stock-specific movements in the days ahead.

Market participants will also keep an eye on any policy announcements from the government. The coming week's trading will likely hinge on these factors.