Indian equity benchmarks Sensex and Nifty staged a smart recovery on Friday, snapping a three-day losing streak, as buying in banking, IT, and auto stocks lifted sentiment. The BSE Sensex surged 502 points or 0.68% to close at 74,332, while the NSE Nifty gained 148 points or 0.66% to settle at 22,570.
Market Movers
The rebound was led by heavyweights such as Reliance Industries, HDFC Bank, and Infosys. Among sectoral indices, Nifty Bank rose 0.8%, Nifty IT gained 1.2%, and Nifty Auto advanced 0.9%. Broader markets also performed well, with the BSE Midcap index climbing 0.7% and the Smallcap index adding 0.5%.
Global Cues and Rupee
Positive global cues also supported the domestic market. Asian markets traded higher, and US futures were in the green. The Indian rupee strengthened marginally to 83.45 against the US dollar, tracking the recovery in equities.
Analysts attributed the bounce back to value buying after the recent correction. However, they caution that volatility may persist due to global uncertainties and upcoming domestic economic data.
Technical View
From a technical perspective, the Nifty formed a bullish candle on the daily chart, indicating a short-term bottom. The index has support at 22,300 and resistance at 22,800. The broader trend remains positive as long as it holds above the 22,000 mark.
Outlook
Market participants will now focus on the release of US jobs data and the Reserve Bank of India's monetary policy decision next week. Any dovish stance from the RBI could further boost sentiment.
