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The market witnessed a strong upward movement on Friday, with significant gains in large-cap indices, particularly IT and banking. This shift is attributed to DII rotation from mid/small-caps to large-caps, driven by Q1 earnings expectations and attractive valuations. Consumer durables also saw buying interest due to demand outlook. Global market weakness in tech stocks presents a potential risk. Technically, Nifty shows positive momentum but faces resistance near higher levels, with support identified at 24,200.
Indian stock markets concluded the week on a robust note Friday, with both the benchmark Sensex and Nifty indices registering gains exceeding 1%. The rally was primarily fueled by optimism surrounding the first quarter earnings season and significant buying activity in the Information Technology (IT) and banking sectors. Despite a global market sell-off, domestic investor sentiment remained resilient.
The Sensex surged by over 964 points to close at 78,151, while the Nifty 50 advanced approximately 262 points, ending the session at 24,334. This upward movement occurred even as broader market indices, including the Nifty Midcap 100 and Nifty Smallcap 100, experienced declines of up to 0.4%.
Analysts observed a discernible shift in market momentum, with a strong rotation towards large-cap stocks, particularly within the IT and banking segments. This trend is reportedly being driven by positive business updates and expectations for strong Q1 earnings. Vinod Nair, Head of Research at Geojit Investments, noted that domestic institutional investors appear to be moving out of relatively expensive mid- and small-cap stocks and into more attractively valued large caps, which are perceived to offer a better risk-reward profile.
Furthermore, there is emerging buying interest in the consumer durables sector, attributed to expectations of healthy domestic demand in the second half of the fiscal year 2027. The broader market sentiment, while exhibiting selective profit-booking in some segments, is generally viewed as constructive, supported by an improving outlook for the Indian economy.
Globally, stock markets faced headwinds, with US equities experiencing a sell-off in AI-focused stocks, pulling down global markets. The S&P 500 fell 1%, marking its first losing week in three. European equities also saw a slight dip, dragged down by tech stocks, ahead of the European Central Bank meeting and corporate earnings announcements.
Technically, the Nifty has broken out of a five-day consolidation phase, suggesting increased optimism. The index remains above its critical moving averages, and the Relative Strength Index (RSI) indicates a bullish crossover, reinforcing positive momentum. Analysts suggest the Nifty could potentially move towards the 24,800 level in the near term, with immediate support at 24,200.
Several stocks were actively traded on Friday. By turnover, Kalyan Jewellers, Reliance Industries (RIL), Jio Financial Services, BHEL, Tech Mahindra, ICICI Bank, and Federal Bank were among the most active. By volume, Vodafone Idea, Suzlon Energy, Jio Financial Services, Yes Bank, Kalyan Jewellers, Groww, and MRPL saw significant trading activity.
Stocks exhibiting strong buying interest included eClerx Services, Authum Investment, Federal Bank, Kalyan Jewellers, Afcons Infrastructure, Tech Mahindra, and Bharat Forge. Federal Bank, Exide Industries, Sona BLW Precision, Himadri Speciality, Adani Transmission, Ipca Laboratories, and Gujarat Fluorochemicals reached their 52-week highs. Conversely, CEAT, Welspun Corp, Kirloskar Oil, Emmvee Photovoltaic, Vijaya Diagnostic, HFCL, and Gallantt Metal witnessed selling pressure. Vedanta and Go Digit General Insurance hit their 52-week lows.
On Friday, out of 3,419 stocks traded on the NSE, 1,312 advanced, 2,004 declined, and 103 remained unchanged, indicating a predominantly negative sentiment among a larger number of stocks despite the benchmark index gains.
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