The Indian benchmark indices rebounded on Friday, ending a three-day decline, driven by strong buying in banking and financial stocks. The BSE Sensex closed 218.14 points or 0.27% higher at 81,224.75, while the NSE Nifty 50 gained 104.20 points or 0.42% to finish at 24,854.05.
Banking stocks led the recovery, with the Nifty Bank index surging 1.57% and Nifty Financial Services climbing 1.50%. Axis Bank emerged as the top gainer on NSE, soaring 5.75%, followed by Wipro (3.59%), Eicher Motors (2.98%), ICICI Bank (2.90%), and Shriram Finance (2.80%).
The IT sector faced significant pressure, primarily due to Infosys dropping 4.22%. Other notable decliners included Britannia (-1.98%), Asian Paints (-1.87%), Nestle India (-1.21%), and Tech Mahindra (-0.82%).
Despite an initial drop, the market showed resilience, with the Nifty touching a low of 24,567 before recovering. Analysts noted that positive results from private banks built expectations for upcoming financial reports.
The market breadth remained slightly negative, with 1,993 stocks declining against 1,942 advancing. The session saw 213 stocks hitting a 52-week high, while 52 reached 52-week lows.
Ajit Mishra from Religare Broking Ltd cautioned against over-analyzing the single-day rebound, suggesting to wait for a decisive close above 25,150 in Nifty for sustained recovery signs.
Broader markets showed mixed performance, with Nifty Next 50 gaining 0.38% and Nifty Midcap Select rising 0.32%. Technical analysts remain cautious, indicating that as long as Nifty holds above 24,700, there is no significant panic.
Globally, Asian markets traded mostly higher after China's central bank announced plans to support the stock market through share repurchases. European markets remained mixed as investors assessed underwhelming earnings updates and retail sales data.
Technical analysts suggest that Nifty could face resistance at 25,128 in the near term, while support is seen at 24,568.