Mumbai (Maharashtra) [India], October 16 (ANI): The Indian equity markets ended higher on Friday, extending their recovery for the second straight session, with Sensex surging over 400 points and Nifty above the 23,100 level. The recovery was led by IT stocks, with the indices gaining over 3 per cent amid sustained earnings-driven momentum. 

Sensex closed at 74,729.27, up 413.66 points or 0.56 per cent against the previous close of 74,315.61, and Nifty settled at 23,146.15, up 148.80 points or 0.65 per cent against the previous close of 22,997.35. 

Most broad market indices ended in the green. Sectorally, Nifty IT emerged as the top gainer, surging 3.92 per cent, followed by cement and media, while most indices ended in the red. 

On BSE, Tech Mahindra, TCS, Infosys, Bharti Airtel, M&M, Bajaj Finance, HCL Tech, Maruti, Titan, Power Grid, Eternal, Trent, among others, were the top gainers. IndiGo, Reliance, ITC, Kotak Bank, Hindustan Unilever, Bajaj Finserv, Tata Steel, BEL, Axis Bank, HDFC Bank, SBIN, Adani Ports, among others, were the top laggards. 

Likewise, on NSE, Tech Mahindra, TCS, Infosys, Bharti Airtel, HCL Tech, M&M, Bajaj Finance, Hindalco, JSW Steel, Grasim, Eternal, ICICI Bank, HDFC Life, Adani Ports among others were the top gainers. Indi Go, BSE, Max Health, ONGC, Nestle, Reliance, Cipla, Coal India among others were the top laggards.

Ajit Mishra, SVP, Research, Religare Broking, noted, "After opening on a flat note, the indices gained ground as buying interest in select heavyweights, particularly technology stocks, supported sentiment. The market subsequently moved into a range-bound phase but held on to most of its gains. Both the Nifty and the Sensex eventually settled closer to their respective day's highs, reflecting continued resilience in frontline stocks."

On the sectoral front, Mishra added, "IT stocks led the gains for the fourth consecutive session, rising around 4% amid sustained earnings-driven momentum. Metal and auto stocks also contributed to the positive sentiment." 

However, he noted that weakness in select FMCG, realty and energy heavyweights capped the upside. Broader-market indices remained subdued for the second consecutive session, with both midcaps and smallcaps ending largely flat.

"The recent buoyancy in IT stocks, following quarterly results, has been the primary driver of the market rebound, while other sectors have played a supportive role so far. The rupee strengthened against the US dollar, offering some relief to domestic sentiment. However, Brent crude remained elevated near USD 105 per barrel, while concerns over persistent inflation and US bond yields continued to warrant caution," he said. 

At the time of reporting, Brent crude was trading at around USD 105.58 per barrel while crude oil was trading at around USD 105.58 per barrel. 

Looking ahead, markets will react to the quarterly earnings of major banking players, he said. 

Market analyst Vipin Dixena noted, "The most important development is the divergence between the strength in IT stocks and the cautious sentiment across other sectors. Strong quarterly numbers are creating opportunities in individual companies, but elevated crude oil prices and persistent global inflation concerns continue to weigh on overall risk appetite."

He added, "From a fundamental perspective, I believe the next phase of the market will depend on whether corporate earnings can justify valuations and sustain investor confidence. Strong earnings growth, healthy cash flows, manageable debt and improving operating margins will be more important than short-term price momentum." (ANI)