Indian equities ended Friday’s session on a positive note, with benchmark indices managing modest gains despite sharp intraday volatility and currency weakness. The BSE Sensex closed 187 points higher, while the Nifty 50 settled above the 25,650 mark, supported primarily by buying interest in IT and banking heavyweights. The broader tone of the market reflected selective risk-taking, driven by earnings optimism and sector-specific triggers.
The session began on a strong footing, with the Sensex surging more than 700 points and the Nifty briefly reclaiming levels above 25,850. However, profit booking at higher levels and mixed global cues pared most of the early gains by the close. Still, frontline indices managed to hold into positive territory, indicating underlying resilience in market sentiment.
IT Stocks Shine on Earnings Momentum
Information technology stocks emerged as the key drivers of the day. Infosys shares jumped nearly 6% after the company reported better-than-expected December quarter results and raised its full-year revenue growth guidance. The upbeat outlook revived confidence in the IT sector, which has faced prolonged uncertainty due to global slowdown concerns. Other IT majors also saw follow-through buying, helping the Nifty IT index outperform the broader market.
Investor sentiment was further supported by expectations that stabilising global demand and easing cost pressures could gradually improve margins for large IT firms over the coming quarters.
Banks and Financials Lend Support
Banking and financial stocks also contributed meaningfully to the gains. HDFC Bank and TCS emerged as top movers on the Sensex, while several private and PSU banks traded firm through the day. Federal Bank shares surged to a fresh 52-week high, rising nearly 9% after reporting strong Q3 results, with improved asset quality and steady loan growth.
The Bank Nifty reclaimed the 60,000 level, reflecting renewed interest in rate-sensitive stocks. Financial services stocks, including asset management companies, also witnessed buying after robust earnings updates, adding to overall market stability.
Broader Market Mixed, Select Stocks See Sharp Moves
The broader market showed a mixed trend. Realty and metal stocks displayed strength, while FMCG stocks remained largely steady. On the other hand, healthcare and select defensive stocks lagged, with the Nifty Pharma index slipping over 1.5% amid stock-specific concerns.
Among individual stocks, IndiaMART InterMESH, ICICI Prudential Asset Management Company, and Angel One recorded sharp gains following earnings-related developments. In contrast, stocks such as L&T Technology Services, GE Vernova T&D India, and Engineers India ended as notable losers due to profit-taking and sectoral weakness.
Rupee Slides Sharply Against the Dollar
Adding a note of caution, the Indian rupee posted its sharpest single-day decline in nearly two months, ending at 90.8650 per US dollar. The currency came under pressure due to broad dollar strength and persistent foreign fund outflows. Currency weakness remains a key monitorable for equity markets, especially for import-dependent sectors.
Global Markets Provide Mixed Cues
Asian markets offered mixed signals during the session. Japan’s Topix and Nikkei edged lower as investors paused after a recent rally, while markets in Hong Kong, China, and Australia posted modest gains. European futures traded slightly lower, reflecting cautious global sentiment ahead of key economic data and earnings announcements.
Outlook: Optimism with Caution
Overall, Friday’s trade reflected a mildly risk-on environment, led by earnings-driven buying in IT and financial stocks. While intraday volatility highlighted investor caution at higher levels, the ability of the Nifty to hold above 25,650 suggests underlying strength.
Going ahead, market participants are likely to track ongoing Q3 earnings, movements in the rupee, global cues, and expectations around upcoming policy and budget-related developments. With selective leadership from growth-oriented sectors, the near-term trend remains positive, though gains may stay gradual and stock-specific rather than broad-based.