Indian Markets Rally: Sensex and Nifty Snap Two-Day Losing Streak Driven by IT Surge
MUMBAI: Indian equity markets staged a welcome recovery on Friday, snapping a two-session downward trend as investors turned their attention to the technology sector. The benchmark indices, Sensex and Nifty, concluded the day in positive territory, bolstered by a significant rally in blue-chip IT stocks and a positive sentiment flowing from international markets.
The 30-share BSE Sensex climbed 331 points to close at 77,265, marking a strong recovery from its morning session. At its peak, the index had surged as much as 424 points, touching an intraday high of 77,358. Similarly, the 50-share NSE Nifty gained 85 points to settle at 24,176.
The IT Engine
The day’s gains were primarily driven by a stellar performance in the technology sector. The Nifty IT index outperformed, posting a notable gain of 3.5%. Market experts point to global developments, specifically the robust earnings and optimistic outlook provided by AI-chip giant Nvidia, as the primary catalyst for the surge.
“Strong gains in IT stocks helped Indian equities close higher today,” said Vinod Nair, head of research at Geojit Investments. “The sector was supported by Nvidia’s strong earnings and upbeat outlook, which reinforced optimism around sustained AI-related investments.”
Hariselvan Radhakrishnan, founder & CEO of HST Wealth, echoed this sentiment, noting that technology stocks were the clear outperformers of the session. “Investors responded positively to supportive global cues for the sector, which helped offset subdued performance across much of the broader market,” Radhakrishnan added.
A Measured Outlook
While the rebound provided a sigh of relief for investors, market participation remained relatively selective throughout the day. Analysts suggest that the cautious approach is linked to the highly anticipated comments from the US Federal Reserve Chair at the upcoming Jackson Hole symposium.
Investors are looking for definitive signals regarding the future trajectory of US interest rates and broader global liquidity conditions. Because the outcome of the symposium is expected to set the tone for global markets, many traders opted to keep their portfolios balanced rather than engaging in aggressive buying across all sectors.
As the markets look toward the week ahead, the focus remains on whether the IT-led momentum can broaden into other segments of the economy or if the Sensex and Nifty will continue to trade with caution until clarity on global monetary policy is established.
