MUMBAI–Indian stock markets advanced for a second consecutive session Friday, with the Sensex gaining more than 300 points and the Nifty closing above 23,000 as strong buying in information technology and pharmaceutical stocks lifted benchmark indices despite weakness in the broader market.
The BSE Sensex climbed 308.49 points, or 0.42%, to close at 74,459.53, while the NSE Nifty 50 rose 116.35 points, or 0.51%, to settle at 23,053.10.
Gains in major technology companies helped support the market as investors shifted toward Indian IT stocks amid changes in global investment sentiment surrounding artificial intelligence-related companies.
The strength in heavyweight IT shares also helped Indian benchmark indices outperform several other Asian markets during the trading session.
Among Nifty constituents, Trent, InterGlobe Aviation and Infosys were the leading gainers, contributing to the index’s advance.
Pharmaceutical and healthcare stocks also attracted buying interest, supported by favorable earnings reports and investor demand for relatively defensive sectors.
However, gains were concentrated in large-cap stocks, while smaller companies faced selling pressure.
The Nifty MidCap 100 index declined 0.93%, while the Nifty SmallCap 100 fell 1.85%, highlighting a divergence between the performance of major benchmark indices and the broader market.
Sectoral performance was mixed, with the Nifty IT index emerging as the day’s strongest performer. Pharmaceutical stocks also recorded solid gains, while the Nifty Consumer Durables index was the biggest sectoral loser.
Market analysts said the recent strength in large-cap technology shares reflected a shift in investor positioning following the unwinding of heavily concentrated artificial intelligence-related trades in global markets.
“Large-caps showed relative resilience, supported by IT, where selective buying emerged amid a rotation away from global AI plays, while pharma and healthcare gained on encouraging earnings and defensive demand,” according to the market experts.
From a technical perspective, analysts noted that the Nifty had broken out of a period of consolidation, closing above the important 22,800 level and reclaiming its 20-day moving average.
The development was viewed as a positive signal for near-term market momentum, although analysts cautioned that further gains would depend on the index maintaining key support levels.
“On the 3-hour chart, a symmetrical triangle pattern is developing, with a breakout above 23,250 required for confirmation. The short-term outlook remains positive as long as the index sustains above 22,800,” analysts stated.
Market watchers identified 23,250 as an important resistance level, suggesting that traders could consider taking partial profits if the index approaches that mark.
“Traders can consider booking partial profits near 23,250 while holding the remaining long positions with a trailing stop-loss of 22,950,” market watchers stated.
Despite the positive close, declines in mid-cap and small-cap stocks suggested that investor confidence remained uneven, with buying concentrated in select large-cap technology, pharmaceutical and healthcare companies.
The latest session extended the recovery in India’s major equity benchmarks, although broader market weakness indicated that the rally had yet to spread across all segments of the market. (Source: IANS)
