Markets rebounded sharply on Friday, with the BSE closing 447.55 points higher at 84,929.36 and the gaining 150.85 points to settle at 25,966.40, snapping a four-session losing streak as favourable global cues and a sharp recovery in the triggered broad-based buying across sectors.
The rally was underpinned by renewed optimism around further monetary easing by the US Federal Reserve following lower-than-expected November inflation data. The rupee strengthened sharply to 89.60, gaining over 0.7 per cent against the dollar, supported by likely RBI intervention after testing lows near 91.00. “Near-term direction will depend on RBI meeting minutes, dollar movement and FII flows, with the rupee expected to trade in the 89–90 range,” said Jateen Trivedi, VP Research Analyst at LKP Securities.
emerged as the top gainer among Nifty 50 constituents, surging 4.10 per cent to close at ₹905.10, followed by Max Healthcare, which rose 2.62 per cent to ₹1,076.00. Bharat Electronics Limited gained 2.49 per cent to ₹393.00, while TMPV advanced 2.43 per cent to ₹354.20. Power Grid Corporation rounded off the top gainers, rising 2.05 per cent to ₹263.25.
On the losing side, declined 1.18 per cent to ₹1,641.80, while Hindalco Industries fell 0.34 per cent to ₹853.75. Kotak Mahindra Bank slipped 0.23 per cent to ₹2,159.60, JSW Steel lost 0.20 per cent to ₹1,080.00, and ICICI Bank edged down 0.18 per cent to ₹1,354.30.
Broader markets outperformed benchmarks significantly, with the Nifty Midcap 100 surging 1.20 per cent to 60,310.15 and the Nifty Smallcap 100 gaining 1.34 per cent to 17,390.35. Market breadth remained firmly positive, with 2,652 stocks advancing against 1,531 declines on the BSE. A total of 100 stocks hit 52-week highs, while 179 touched 52-week lows.
Sectoral performance was broad-based, with Nifty Realty emerging as the top gainer, up 1.7 per cent, followed by Nifty Auto at 1.2 per cent. The Nifty Next 50 advanced 0.81 per cent to 68,378.65, while Nifty Financial Services rose 0.41 per cent to 27,378.60. Bank Nifty gained 0.27 per cent to 59,069.20, though it underperformed the broader market.
“The rebound was supported by positive global cues, a recovery in the rupee and a pause in foreign outflows, which helped ease selling pressure and lifted sentiment across sectors,” said Ajit Mishra, SVP Research at Religare Broking. Information technology stocks attracted attention following strong cues from Accenture’s better-than-expected first-quarter results.
“Global equities rallied as US CPI undershot estimates, reinforcing expectations of a softer Fed stance. Meanwhile, the BoJ raised its policy rate by 25 bps to a three-decade high, a move that could reshape global liquidity trends,” said Vinod Nair, Head of Research at Geojit Investments. Oil prices continued to soften on oversupply concerns and a subdued growth outlook.
In commodities, gold remained under pressure on the domestic front, with MCX gold trading around ₹1,33,850, slipping nearly 0.45 per cent as rupee strength capped upside momentum. “In the near term, gold is expected to stay volatile within a range of ₹1,31,500–₹1,34,000,” Trivedi said.
Technically, the Nifty rebounded from its 50-day EMA and closed above the downward-sloping trendline resistance on the daily chart. “For Nifty, the previous swing high zone of 26,050-26,100 will act as important resistance. Any sustained move above the 26,100 level could trigger a pullback upto the 26,300 level,” said Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities.
Looking ahead, analysts expect markets to continue their recovery within a broader range. “We expect markets to continue their recovery while trading within a broader range, supported by improving foreign institutional investor flows, a marginal recovery in the rupee, and supportive global cues,” said Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services.