Indian stock markets rebounded sharply on Friday, with both the Sensex and Nifty surging over 2 percent. The gains, driven by strong US labor market data and a broad recovery from oversold levels, marked a significant recovery in Indian equities.
The Sensex jumped 1,961.32 points, or 2.54%, to close at 79,117.11, while the Nifty gained 557.35 points, or 2.39%, to settle at 23,907.25. This remarkable bull run is the largest since June 5, when the Sensex surged 3.20% and the Nifty climbed 3.36%.
Market analysts highlighted the role of corrections in creating opportunities for investors to accumulate quality stocks with solid fundamentals. Krishna Appala of Capitalmind Research said, “India’s long-term growth story remains compelling despite global challenges. Sectors like urbanization, infrastructure, and consumption growth align with structural themes and offer strategic investment opportunities.”
Blue-chip bank stocks led the rally, with strong performances from State Bank of India, ICICI Bank, IndusInd Bank, and others. Among the Sensex pack, Tata Motors, Power Grid, Bajaj Finance, Bajaj Finserv, and Tech Mahindra also posted notable gains.
Positive momentum in global markets further bolstered domestic equities. Vinod Nair, Head of Research at Geojit Financial Services, attributed the uptick to easing inflation in Japan and a massive 39 trillion yen stimulus package. He added that moderation in political uncertainties globally and domestically contributed to the market’s optimism.
The IT sector, which has faced challenges in recent months, is expected to recover as global headwinds ease in the medium term, according to analysts.
Domestic institutional investors (DIIs) played a key role in the market’s recovery, purchasing shares worth Rs 4,200.16 crore on Thursday, even as foreign institutional investors (FIIs) sold equities worth Rs 5,320.68 crore.
(IANS)