Indian Markets Surge: Sensex Jumps, Nifty Tops 24950 as IT and Financials Lead the Charge

Indian equity markets painted a vibrant picture on Friday, concluding the week with notable gains that saw key indices ascend confidently. Investors cheered as the Sensex surged by an impressive 324.08 points, or 0.43 percent, to settle at 77,727.69. Not to be outdone, the Nifty 50 also demonstrated robust performance, advancing 82.10 points, or 0.33 percent, to close comfortably above the psychological 24,950 mark at 24,970.65.

The day's upward momentum was predominantly spearheaded by a powerful rally in the ever-crucial IT and financial sectors, injecting a renewed sense of optimism across the bourses.

The market's ascent was a testament to the strong showing of select heavyweights. Among the Nifty gainers, technology behemoths like Infosys, Tech Mahindra, and Wipro led the charge, underscoring a renewed interest in the IT space.

Financial giants such as HDFC Bank also contributed significantly, alongside industrial powerhouse Larsen & Toubro. Conversely, a few sectors faced headwinds, with Power Grid Corporation, Hero MotoCorp, BPCL, SBI Life Insurance, and Hindalco emerging as the day's primary laggards on the Nifty. Despite these pockets of weakness, the broader market sentiment remained largely positive, reflected in the robust midcap and smallcap indices, which registered gains of 0.1 percent and 0.7 percent respectively.

A closer look at the sectoral performance revealed the clear leaders: the Nifty IT index climbed an impressive 1.5 percent, followed by the Bank index (0.6 percent), Financial Services (0.5 percent), and Realty (0.5 percent).

This concentrated strength offset the drag from sectors that closed in the red, including FMCG, Oil & Gas, Pharma, Power, and Metal. The overall market breadth leaned favourably towards advancers, indicating that a greater number of stocks moved up than down, a healthy sign for market participants.

Beyond domestic shores, global cues played a supportive role.

Most Asian markets traded higher, with key indices like Hang Seng, Nikkei, and Kospi showing strength, while European markets presented a mixed picture. Crucially, foreign institutional investors (FIIs) continued their buying spree, pouring a substantial Rs 2,569.75 crore into Indian equities. Domestic institutional investors (DIIs), however, turned net sellers, offloading shares worth Rs 2,051.48 crore.

The Indian Rupee also saw a marginal depreciation, closing at 83.56 against the US dollar.

Market experts offered their insights into the day's action and potential future movements. Analysts like Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities, noted Nifty's ability to maintain higher levels, suggesting a 'buy on dips' strategy with immediate support at 24,800.

Chandan Taparia, Senior Vice President, Analyst-Derivatives at Motilal Oswal Financial Services, emphasized the Nifty's continued 'Higher High - Higher Low' formation on daily charts, indicating sustained positive momentum. He pointed to 24,800-24,750 as critical support and 25,150-25,250 as resistance, reinforcing the optimistic sentiment for the days ahead.

The overall outlook remains cautiously optimistic, with eyes set on key global developments and sustained earnings performance.