Indian equities rebounded this week with the Nifty 50 climbing 2.77% and the Sensex gaining 3.11%, driven by renewed buying in information technology stocks, easing global bond-yield pressures, and steady domestic institutional inflows, according to livemint.com. The Nifty closed at 23,146.15 on Friday, up 625.7 points for the week, while the Sensex ended at 74,729.27, adding 2,256.94 points.
The rally extended for a second consecutive session on Friday, with the Sensex rising 413.66 points, or 0.56%, and the Nifty advancing 148.80 points, or 0.65%. Market experts highlighted that the recovery was supported by IT sector strength and domestic buying despite foreign portfolio investors continuing to sell Indian equities for the third straight week, with net outflows of about $830 million in equities last week, per thehindubusinessline.com.
The market's near-term direction will depend on several factors, including whether earnings growth broadens beyond IT stocks and if foreign investor selling eases further. Analysts noted that the September-quarter earnings season will be a key driver, with investors looking for stronger revenue growth and margins across banking, consumption, and industrial sectors. The Nifty faces immediate resistance at 23,150, with a potential rise to 23,300-23,500 if breached, according to technical analysis from thehindubusinessline.com.
The medium-term outlook remains positive as the Nifty's rise above 23,000 confirms the broader 22,000-26,500 range is intact. A break above 23,500 could pave the way for a move toward 24,000 in the short term, thehindubusinessline.com reported. Foreign portfolio investors' net outflow for October has reached $5.41 billion, underscoring the importance of domestic and sectoral performance in sustaining the market recovery.