Sensex gains 150 pts, Nifty closes above 24,350 on strong Q1 earnings

Indian equity benchmarks ended Friday's session in the green, with the Sensex settling 150 points higher and the Nifty closing above the 24,350 level. The gains were led by a wave of strong quarterly results, which boosted investor sentiment across sectors.

The 30-share BSE Sensex closed at its day's high, while the broader Nifty held firmly above the psychological 24,350 mark. Market participants pointed to robust Q1 earnings as the primary catalyst, with several blue-chip companies beating street estimates.

Q1 earnings drive sentiment

The ongoing earnings season has thrown up several positive surprises, particularly in the banking, IT, and FMCG spaces. Healthy margin expansion and resilient demand have reassured investors, even as global cues remained mixed through the week.

Bargain hunting in beaten-down large caps also added to the upward momentum. Analysts said the market is currently in a phase where stock-specific action is taking precedence over broader macro triggers.

Sectoral performance

Most sectoral indices on the National Stock Exchange ended in positive territory. Financials, information technology, and consumer durables were among the top gainers, while select energy and pharma stocks witnessed mild profit booking.

The midcap and smallcap indices outperformed their larger peers, reflecting broad-based participation. Market breadth remained positive, with advancing shares comfortably outnumbering decliners on both exchanges.

What traders watched

Foreign institutional investors turned net buyers in the last two sessions, a shift that provided additional support. Domestic institutional flows also remained steady, keeping liquidity conditions favourable.

Crude oil prices stayed range-bound, while the rupee held its ground against the dollar. Traders largely ignored concerns over global rate trajectories, choosing instead to focus on domestic earnings momentum.

Outlook for the week ahead

With the earnings season entering its final stretch, the market's next leg of direction will depend on a few large-cap results still due. Any upgrade in growth forecasts by companies could sustain the positive bias.

Global factors, including the US Fed meeting minutes and upcoming economic data, will also be on the radar. Analysts expect volatility to remain, but the underlying tone appears constructive as long as earnings hold up.

Investors will now watch the derivatives expiry and monthly auto sales data for further cues. The market's ability to hold above the 24,350 level on the Nifty will be key in determining short-term momentum.