Sensex gained 262 points, while Nifty closed above 24,250 for a third session.
IT, realty and pharma stocks led gains, offsetting weakness in banking and energy.
Rupee strengthened as a weaker dollar and easing FII selling improved sentiment.
Indian benchmark indices ended higher for the third consecutive session on Friday, supported by gains in information technology, realty and pharmaceutical stocks, as softer US labour market data strengthened expectations of a more accommodative global interest-rate environment.
The BSE Sensex rose 261.79 points, or 0.34%, to close at 77,763.91, while the NSE Nifty 50 gained 95.15 points, or 0.39%, to settle at 24,270.85.
1 June 2026
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Market breadth remained positive, with 2,182 stocks advancing, 1,879 declining and 188 remaining unchanged.
Among the Nifty constituents, HCL Technologies, Max Healthcare, Bajaj Finserv, Apollo Hospitals and Dr Reddy's Laboratories were the top gainers. Axis Bank, Mahindra & Mahindra, State Bank of India, Larsen & Toubro and Tech Mahindra ended among the biggest losers.
IT, Realty Lead Sectoral Gains
Sectoral performance remained mixed, with Nifty Realty emerging as the top performer, gaining 2%. Nifty IT and Nifty Pharma advanced 1.7% each, while Nifty Metal rose 0.7%.
On the other hand, Nifty PSU Bank declined 1.5% to emerge as the biggest sectoral laggard. Nifty Energy fell 1.3%, while Auto, Media, Consumer Durables and Bank indices also ended lower.
Broader markets underperformed the benchmark indices, with the Nifty Midcap 100 ending marginally lower and the Nifty Smallcap 100 closing flat.
Global Cues, Lower Crude Support Sentiment
Vinod Nair, Head of Research at Geojit Investments, said domestic markets ended higher despite intermittent volatility and profit booking, supported by favourable global cues and growing expectations of a more accommodative global monetary policy following softer US labour market data.
He added that investor sentiment also received support from positive outcomes of the India-Japan Summit and the continued recovery in information technology stocks.
According to Nair, lower crude oil prices remain a significant macroeconomic tailwind for India by improving the inflation outlook, external balances and overall economic stability.
He said investors will now focus on the Q1 FY27 earnings season and management commentary, particularly against the backdrop of a widening monsoon deficit. Progress on the proposed US-India free trade agreement will also remain an important trigger, while the broader market is likely to continue following a buy-on-dips strategy.
Technical Outlook Remains Positive
The Indian rupee appreciated 17 paise to close at 95.22 against the US dollar, compared with Thursday's close of 95.39.
Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP Securities, said the rupee strengthened as the Dollar Index slipped below 100.50 and foreign institutional investor selling moderated in recent sessions.
He added that improved global sentiment and a weaker US dollar supported the domestic currency, although traders remain cautious ahead of the weekend due to geopolitical developments involving the US-Iran and Russia-Ukraine conflicts. Attention will also shift to next week's Federal Reserve meeting minutes for further clues on the US interest-rate outlook. He expects the rupee to trade in the 95.00-95.45 range in the near term.
Rupak De, Senior Technical Analyst at LKP Securities, said the Nifty has registered a consolidation breakout on the daily chart and continues to hold above its 50-day exponential moving average, indicating improving market sentiment.
He added that the RSI has also witnessed a bullish crossover, strengthening the positive momentum. According to De, the index is well placed to advance towards 24,500 in the near term, with immediate support at 24,200 and a stronger support zone around 24,000.
