Benchmark indices ended higher on Friday, helped by a sharp rally in IT stocks after Nvidia’s strong quarterly results and upbeat outlook lifted sentiment towards the technology sector.
However, the gains were not enough to prevent the benchmarks from ending the week lower for a third straight week, as elevated crude prices, global bond yields and geopolitical uncertainty continued to weigh on sentiment.
The BSE gained 330.92 points, or 0.43%, to close at 77,264.51, while the Nifty 50 rose 84.80 points, or 0.35%, to 24,175.65. The Sensex moved between 76,988.22 and 77,357.97 during the session, while the Nifty traded in a range of 24,076.85-24,188.30.
Despite Friday’s gains, both benchmarks ended the week lower for a third consecutive week. Investors remained cautious ahead of the Federal Reserve chair’s speech at Jackson Hole, looking for clues on the US interest-rate outlook and global liquidity conditions. The new closing-auction mechanism also contributed to sharp swings in the benchmarks during the week.
IT stocks were the biggest drivers of Friday’s rally. The Nifty IT index surged 3.51%, with TCS gaining 4.09%, Infosys rising 3.34%, Tech Mahindra climbing 3.18% and HCLTech advancing 2.68%. Titan rose 1.17%, while Eternal gained 1.16% and HDFC Bank and Axis Bank added 1.12% each.
Vinod Nair, Head of Research, Geojit Investments Limited, said strong gains in IT stocks helped Indian equities close higher, with Nvidia’s results reinforcing optimism around sustained AI-related investments.
“The sector was supported by Nvidia’s strong earnings and upbeat outlook, which reinforced optimism around sustained AI-related investments and benefited firms involved in enterprise AI deployment and workflow integration,” Nair said.
He added that investor participation remained selective as markets awaited the Fed chair’s comments at Jackson Hole for greater clarity on the US interest-rate outlook and global liquidity conditions. “Domestically, with the Q1FY27 earnings season largely concluding on a healthy note, focus is gradually shifting towards the sustainability of earnings growth amid evolving global macroeconomic conditions,” Nair said.
Nair said supportive domestic liquidity was providing stability to the market, but unresolved West Asia tensions and elevated crude oil prices remained key risks for growth and corporate profitability.
Crude prices remained relatively firm despite easing on Friday. Brent crude was at $89.63 a barrel, down 0.08%, while WTI crude fell 0.40% to $83.20. The rupee strengthened 0.2% against the US dollar to 95.3775, rounding out a weekly gain, helped by a spurt in dollar liquidity ahead of the closure of a special deposit window.
The Nifty IT index was the strongest sectoral performer, followed by Nifty MidSmall IT & Telecom, which gained 2.26%. Nifty Metal rose 0.75%, Nifty Pharma added 0.53% and Nifty Media gained 0.39%.
Nifty PSU Bank rose 0.19%, while Nifty Healthcare gained 0.54% and Nifty Oil & Gas edged up 0.06%.
On the other hand, Nifty Chemicals fell 0.70%, Nifty FMCG declined 0.46% and Nifty Financial Services ex-Bank slipped 0.27%. Nifty Private Bank fell 0.08%, while Nifty Auto and Nifty Financial Services 25/50 also ended lower.
The broader market closed in positive territory. Nifty 100 gained 0.24%, Nifty 200 rose 0.20% and Nifty 500 added 0.20%. Nifty Midcap 50 gained 0.24%, while Nifty Midcap 100 advanced 0.05%. Nifty Smallcap 100 rose 0.20%.
India VIX, however, fell 3.70% to 10.66, indicating some easing in near-term market volatility.
Among Sensex stocks, TCS, Infosys and Tech Mahindra were the biggest gainers, while ICICI Bank fell 1.30%, Ultratech Cement declined 1.18% and Asian Paints lost 1.06%. Maruti, Bajaj Finserv and ITC were also among the laggards.
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