MUMBAI — Indian stock markets ended higher for a second consecutive session Friday, supported by declining crude oil prices and strong buying in information technology shares.
The benchmark BSE Sensex rose 413.70 points, or 0.56%, to close at 74,729.27, while the NSE Nifty 50 gained 148.80 points, or 0.65%, to finish at 23,146.15.
Technology stocks led the rally, with Tech Mahindra, Tata Consultancy Services (TCS) and Infosys emerging as some of the top performers on the Nifty index.
The Nifty IT index posted the strongest gains among sectoral indices, helping offset weakness in other parts of the market.
Meanwhile, the Nifty Oil and Gas index recorded the steepest decline as energy-related stocks remained under pressure.
Despite gains in the major benchmarks, broader market performance was relatively subdued. The Nifty Midcap 100 index declined 0.11%, while the Nifty Smallcap 100 slipped 0.01%.
Market analysts attributed the positive sentiment partly to easing crude oil prices, which helped reduce inflation concerns and encouraged investors to increase their exposure to equities.
Following Thursday’s breakout from a period of consolidation, the Nifty attracted additional buying interest near the 22,900 level, suggesting improving short-term market sentiment.
Analysts said the index could extend its recovery toward the 23,500–23,600 range, near its 50-day moving average, if it maintains support above 23,000.
However, they cautioned that the broader market trend has yet to show a sustained recovery.
“The immediate support is placed at 22,800, while resistance is seen at 23,200. Sustaining above 23,000 remains crucial for further upside momentum,” market analysts said.
Experts also pointed to differences in performance across sectors, with investors favoring companies offering greater earnings visibility amid ongoing cost pressures.
“The sectoral divergence reflects investors’ preference for earnings visibility amid persistent cost pressures. While rupee appreciation and easing crude prices provide near-term support, global inflationary and geopolitical risks warrant caution,” analysts said.
Market observers noted that a sustained rally would depend on stronger corporate earnings across a wider range of industries, along with improved domestic demand and reduced pressure on profit margins.
“Sustaining the recovery will require broader earnings growth beyond IT, supported by an improvement in domestic demand and easing margin pressures,” analysts added.
Friday’s gains extended the market’s recovery, although weakness in midcap and smallcap stocks indicated that buying interest remained concentrated in select large-cap companies, particularly in the technology sector. (Source: IANS)
