Indian equity markets staged a strong recovery on Friday, with benchmark indices snapping a two-session losing streak amid broad-based buying, gains in information technology (IT) stocks and easing crude oil prices.
The BSE Sensex surged 879.09 points, or 1.23 per cent, to close at 72,472.33, while the NSE Nifty advanced 288.65 points, or 1.3 per cent, to settle at 22,520.45.
Buying interest across frontline stocks lifted market sentiment, with Apollo Hospitals Enterprise, ITC and Eicher Motors emerging as the top gainers on the Nifty index. Softer crude oil prices also supported the rally by easing concerns over inflation and corporate profitability.
Broader markets participated in the recovery, reflecting buying interest beyond large-cap stocks. The Nifty MidCap index gained 1.56 per cent, while the Nifty SmallCap index advanced 0.54 per cent during the session.
Among sectoral indices, the Nifty IT index outperformed the broader market, supported by renewed buying in technology stocks. The sector also benefited from optimism surrounding artificial intelligence-driven revenue opportunities and a strong start to the second-quarter earnings season. In contrast, the Nifty Oil and Gas index emerged as the worst-performing sectoral gauge.
Market experts said the rebound helped benchmark indices recover a significant portion of their recent losses, with value buying and short covering contributing to the gains after the recent correction.
Technically, analysts placed immediate support for the Nifty at 22,450, followed by 22,300, while resistance was seen around 22,600. A sustained breakout above 22,600 could extend the recovery towards 22,800, they said.
Investors are now awaiting India’s consumer price index (CPI) inflation data, scheduled for release on Monday, for further cues on the interest rate outlook following the Reserve Bank of India’s shift towards calibrated tightening.
Market participants also said the performance of companies in the second-quarter earnings season will be crucial in determining whether the recovery can be sustained. Although earnings are expected to show year-on-year growth, investors will closely monitor corporate guidance, demand conditions and the impact of global uncertainties.
“Domestic equities staged a relief rally, supported by value buying and short covering after the recent sharp correction. IT stocks outperformed on the back of a strong start to the Q2 earnings season and rising confidence in AI-driven revenue opportunities,” market watchers said.
Meanwhile, the Indian rupee traded positively, gaining around 20 paise to 96.73 against the US dollar. The currency received support from improving capital market flows and optimism over possible US-Iran discussions following US President Donald Trump’s comments on a potential diplomatic approach.
Investors will continue to track inflation data, corporate earnings, crude oil prices, foreign fund flows and geopolitical developments for further direction in the domestic equity market.