Markets Rally For Second Day; Sensex Jumps 828 Points, Nifty Ends Above 24,200

Benchmark indices Sensex and Nifty extended their gains for a second straight session on Friday, supported by broad-based buying across sectors, optimism ahead of the June-quarter earnings season and strong gains in information technology stocks following Tata Consultancy Services' quarterly results.

The Sensex rose 827.57 points, or 1.08%, to close at 77,569.39, while the Nifty 50 gained 244.10 points, or 1.02%, to settle at 24,206.90.

Market breadth remained firmly positive, with 2,756 stocks advancing, 1,316 declining and 171 remaining unchanged.

Broader markets also outperformed, with the Nifty Midcap 100 climbing 1.5% and the Nifty Smallcap 100 advancing 1.4%.

IT, Realty And PSU Banks Lead Rally

Sectoral performance was broadly positive, with all major indices ending in the green.

The Nifty Realty index emerged as the top performer, surging 3.5%, followed by the Nifty PSU Bank index, which rallied 3%. The Nifty IT index gained 2%, aided by gains in TCS after its June-quarter earnings and upbeat management commentary.

The Nifty Metal index rose 1.5%, while the Nifty Bank index climbed 1.4%. Oil & Gas, Private Bank, Energy, Infrastructure and Consumer Durables indices advanced between 1% and 1.3%, while the Auto index added 0.72%.

Among Nifty constituents, Jio Financial Services, HDFC Life Insurance, Adani Enterprises, SBI Life Insurance and Reliance Industries were the top gainers. Dr Reddy's Laboratories, Eternal, Bharti Airtel, Nestle India and Sun Pharma ended among the top losers.

Broad-Based Participation

The rally was accompanied by strong participation across the broader market.

Of the 4,211 stocks traded on the BSE, 2,786 advanced while 1,222 declined and 203 remained unchanged. A total of 117 stocks touched fresh 52-week highs, while 58 hit new 52-week lows. Around 150 stocks were locked in their upper circuits compared with 129 in lower circuits.

The Nifty 50 advance-decline ratio stood at 34:16, highlighting the broad-based nature of the rally.

Meanwhile, the Indian rupee ended marginally stronger at 95.32 against the US dollar compared with Thursday's close of 95.38.

Quarterly Earnings In Focus

Vinod Nair, Head of Research at Geojit Investments, said the market's recovery was being supported by improving corporate commentary and expectations of a healthy earnings season.

"After a brief interim correction, the market appears to be on track for a strong recovery. Positive business updates from banks, along with a constructive outlook for the IT sector driven by in-line estimates, a potential rebound in global spending, and AI-related opportunities, have set the stage for an optimistic start to the Q1 earnings season. A continuation of better-than-expected Q1 results should help alleviate concerns about future earnings growth. This can further the current uptrend, which is supported by a broad-based rally, with strong participation from sectors such as real estate and metals.

"Globally, easing oil prices and a recovery in the technology sector have further improved sentiment toward India, supporting a rebound in FII inflows. Importantly, the hawkish tone of the FOMC meeting has not weighed on global markets, as recent data suggests inflationary pressures are likely to moderate. At the same time, slowing economic data from the US, EU, and China indicates that central banks may adopt a less hawkish stance going forward," he said.