Indian Stock Markets Soar: Positive Global Cues Ignite a Powerful Rally

On the final trading session of the week, the Indian stock markets surged, bolstered by positive global cues and a strengthened US labor market. Key indices, Nifty 50 and BSE Sensex, rose over 2%, with notable gains in IT, realty, and PSU banks, reviving investor sentiment.

Indian stock markets finished the week on a high note, erasing previous losses thanks to encouraging global signals. The rally was partly driven by indications of robustness in the United States labor market and positive sentiment in other Asian markets.

At the close of trading on Friday, the Nifty 50 at the National Stock Exchange (NSE) climbed by 557.35 points to 23,907.25, while the BSE Sensex surged by 1,961.32 points to land at 79,117.11. Both indices posted gains of over 2%, with the morning session already showing an uptick in line with other Asian stocks.

Leading gainers on the NSE included State Bank of India, Titan, Bajaj Finance, ITC, and TCS, although Bajaj Auto experienced losses. Notably, all sectoral indices traded in positive territory except for Media. The IT sector strengthened by 3.29%, realty ascended by 3.17%, and public sector banks rose by 2.99%, highlighting the overarching upward trend.

A significant turn of events involved Adani Group stocks bouncing back into the green after incurring losses over allegations by the US Department of Justice and the US Securities and Exchange Commission. According to banking and market expert Ajay Bagga, the markets rallied from a vital level of support, spurred by foreign portfolio investments shifting from futures to cash markets, indicating a technical rebound rather than a fundamental shift.

Market analyst VLA Ambala noted the trading action around key moving averages and the RSI dip reflecting an oversold market, prompting value buying in large-cap quality stocks. As Shriram Subramanian of InGovern Research Services highlighted, the markets are attempting a recovery following the Adani investigation's implications, drawing investor interest, particularly in IT and pharma sectors.

(With inputs from agencies.)