Sensex surges nearly 1,000 points as banking and IT stocks power market rally

Mumbai: Indian benchmark indices ended the week on a strong note on Friday, with robust buying in private banking, information technology and automobile stocks lifting the markets sharply higher.

The BSE Sensex soared 964.58 points, or 1.25 per cent, to close at 78,151.45, while the NSE Nifty climbed 261.55 points, or 1.09 per cent, to settle at 24,334.30.

Market analysts said the Nifty is now approaching an important technical hurdle near the 24,400 mark, which coincides with its 200-day Exponential Moving Average (EMA). A decisive move above this level could strengthen the ongoing rally and open the door for a further rise towards the 24,500-24,600 range.

On the downside, experts believe the 24,200 level has now turned into immediate support after shifting from a previous resistance zone. They also identified the 24,000 mark as a key psychological support that will be crucial in maintaining the market's recovery trend.

Among sectoral indices, the Nifty Private Bank index led the gains with a jump of 2.12 per cent. The Nifty IT index rose 1.75 per cent, while the Nifty Realty and Nifty Auto indices gained 1.34 per cent and 1.24 per cent, respectively.

Healthcare-related stocks, however, remained under pressure throughout the session. Both the Nifty Pharma and Nifty Healthcare indices ended among the day's weakest performers.

Despite the strong rally in the benchmark indices, the broader market witnessed some profit-booking. The Nifty Midcap 100 index slipped 0.41 per cent, while the Nifty Smallcap 100 index declined 0.21 per cent.

According to market experts, investor confidence remained firm despite concerns over elevated valuations in artificial intelligence-related stocks, geopolitical tensions in the Middle East and continued volatility in global markets.

Analysts also noted that market momentum is increasingly shifting towards large-cap companies, particularly banking and IT stocks, driven by optimism surrounding quarterly business updates and expectations of strong first-quarter earnings.

With inputs from IANS