On Friday, the Indian stock market experienced a robust rally as key equity indices marked their fifth consecutive day of gains. The NSE Nifty 50 surged by 160 points, or 0.69%, closing at 23,350, while the BSE Sensex soared 557 points, or 0.73%, to finish at 76,905.51. This upward momentum has resulted in both indices finishing the week with an impressive increase of over 4%, a notable performance that outpaced the 9.4% gain seen in the first week of February 2021.

Sector Highlights: Nifty Bank and Healthcare Lead the Charge

Among the sectoral indices, Nifty Bank and Healthcare emerged as the top performers. The Nifty Bank index climbed 531 points, or 1.06%, concluding at 50,594. Similarly, the BSE Midcap index also witnessed significant gains, rising 471.87 points, or 1.14%, to settle at 41,831.57.

• Top Gainers in Nifty 50:
  • SBI Life Insurance: 3.43%
  • NTPC: 3.29%
  • ONGC: 2.72%
  • Bajaj Finance: 2.67%
  • BPCL: 2.56%

Despite the optimism in the market, some stocks faced challenges. Notable laggards included Trent, M&M, Wipro, Hindalco, and Infosys, reflecting the broader market dynamics.

Positive Market Sentiment Despite Global Concerns

Market analysts observed that investors largely ignored negative sentiment from global markets, buoyed by the steady return of Foreign Institutional Investors (FIIs) to local equities. This renewed interest, combined with a significant decline in the domestic currency, has made many stocks appealing across various sectors. Prashanth Tapse, Senior Vice President of Research at Mehta Equities, noted, “The recent drop has made stocks attractive, prompting continued short covering that helped the Sensex surpass the 77k mark during intra-day trading.”

Technical Insights: Nifty’s Upward Trajectory

From a technical perspective, the Nifty index has been on an upward trajectory following a breakout from a falling trendline, supported by positive market sentiment. Rupak De, Senior Technical Analyst at LKP Securities, explained, “A decisive move above 23,400 could propel the index an additional 200 points, targeting 23,600 as the next resistance level. A breakout beyond 23,600 could trigger a new rally phase.”

Broader Market Performance

In the wider markets, both small-cap and mid-cap stocks concluded the day positively. The India VIX, a measure of market volatility, decreased by 0.21% to settle at 12.58, indicating a calmer trading environment.

In summary, Friday’s trading session highlighted a strong performance in the Indian equity markets, driven by key sector gains and investor confidence, setting an optimistic tone for the week ahead.