Share Markets Close On A High As IT Stocks Climb: Sensex Over 300 Points Up, Nifty Above 23,050

Indian benchmark indices, the BSE Sensex and NSE Nifty 50, ended Friday’s trading session in, with information technology stocks lending support to domestic equities despite weakness in global technology shares.

Investors also tracked quarterly earnings announcements, elevated crude oil prices and developments across international markets.

The Sensex closed above 74,450, soaring 300 points. The Nifty 50 settled at 23,053, climbing more than 100 points.

IT Stocks Support Markets; Broader Indices Remain Under Pressure

Information technology stocks remained a key source of support for the benchmark indices, even as concerns over global technology companies weighed on overseas markets following disappointing earnings reports from major US companies.

The Nifty IT index emerged as the strongest-performing sector in the domestic market during the session. In contrast, the Nifty Consumer Durables index recorded the steepest decline among sectoral indices.

The broader market continued to face selling pressure. The Nifty MidCap 100 and Nifty SmallCap 100 had both traded in negative territory during the day, reflecting weaker sentiment beyond the frontline indices.

Among Nifty 50 constituents, Trent, Sun Pharmaceutical Industries and InterGlobe Aviation featured among the leading gainers during the session.

Global Markets, US Tech Earnings Keep Investors Cautious

Global cues remained mixed, with US technology stocks under pressure following corporate earnings announcements. Wall Street had closed lower in the previous session, led by a 1.38% decline in the Nasdaq Composite. The Dow Jones Industrial Average and S&P 500 also ended lower.

Concerns about spending on artificial intelligence resurfaced after Alphabet's revenue missed expectations. Microsoft, however, offered a more upbeat outlook, projecting fiscal second-quarter sales of up to $97.1 billion and Azure growth of 49-50%.

Asian equities also traded lower during early Friday trade. Japan's Nikkei, Hong Kong's Hang Seng and China's Shanghai Composite were all in negative territory. These developments kept global technology shares and investor risk appetite in focus, although Indian equities drew support from domestic buying in select sectors.

Crude Oil Prices, Currency Movements Remain Key Factors

Crude oil prices remained elevated, with Brent crude trading above $111 per barrel and West Texas Intermediate crude hovering around $104 per barrel in early trade.

Higher oil prices remain a concern for India, a major crude importer, as sustained increases can affect import costs, inflation expectations and corporate margins. Oil marketing companies, aviation firms and other fuel-intensive businesses could remain sensitive to further price movements.

In the currency market, the rupee was trading around Rs 95.21 per US dollar in the morning. The US Dollar Index declined, while the yield on the US 10-year Treasury eased. Changes in the dollar, bond yields and global capital flows remain important variables for emerging-market equities.

Gold and silver prices also declined in early trade, with gold trading around $4,004.19 and silver at $51.39.

FII-DII Activity, India VIX In Focus

Institutional flows remained an important factor for domestic market sentiment. In the latest available data, foreign institutional investors were net sellers of Rs 943.60 crore, while domestic institutional investors purchased shares worth Rs 1,924.41 crore.

Domestic institutional buying exceeded foreign investor outflows in the reported session. Meanwhile, India VIX declined 7.02% to 15.11, indicating a reduction in expected market volatility. However, a fall in the volatility index does not, by itself, indicate the direction of the market.