Sensex Surges 879 Points as IT Rally Snaps Eight-Week Losing Streak on Dalal Street

Indian equity benchmarks halted their longest stretch of weekly declines in a quarter-century, as a sharp Friday recovery steered Dalal Street back into positive territory. The rebound brought an end to an eight-week losing streak that had wiped out significant market wealth and pulled benchmark gauges down more than 8% over the preceding two months.

On the final trading day of the week, the BSE Sensex climbed 879.09 points, or 1.23%, to finish at 72,472.33. Simultaneously, the broader NSE Nifty 50 surged 288.65 points, or 1.30%, to close at 22,520.45. On a weekly basis, the Sensex gained 562.63 points (0.78%), while the Nifty advanced 98.50 points (0.44%).

IT Stocks and TCS Earnings Drive Revival

The turnaround was spearheaded by the information technology sector, with the Nifty IT index rallying approximately 3%. Sentiment across tech counters improved after market heavyweight Tata Consultancy Services (TCS) reported solid second-quarter numbers, driven by robust international business momentum and accelerating contributions from artificial intelligence initiatives.

The positive earnings update sparked broad bargain-buying across technology bellwethers, with counters such as TCS and Infosys ranking among the highest turnover contributors on the National Stock Exchange. The broader market also participated, with 22 out of 23 NSE sectoral sub-indices ending in the green—leaving Nifty Oil & Gas as the lone sectoral pocket in negative territory.

Supportive Global Cues and Sectoral Breadth

A temporary easing of geopolitical tensions and retreat in international crude prices provided additional support. Brent crude dropped to around $102.90 per barrel, easing from recent highs that had raised concerns over imported inflation and widened India's current account deficit.

Market breadth showed clear signs of buyer participation on Friday:

• Advancing stocks totaled 2,182 on the NSE against 1,391 declining counters, driving the advance-decline ratio to 1.35.
• The broader market mirrored the upturn, with the Nifty Midcap 100 gaining 0.09% and the Nifty Smallcap 100 adding 0.44% over the week.
• Across the board, Friday's rally added over ₹4 lakh crore to the market capitalization of BSE-listed companies.

On the institutional side, Domestic Institutional Investors (DIIs) continued to absorb foreign portfolio liquidation, injecting net purchases of ₹4,743 crore on Friday to counter Foreign Portfolio Investor (FPI) net sales of ₹3,569 crore. In the currency market, the Indian rupee gained 5 paise to close at 96.71 against the US dollar, tracking broader Asian currency strength and softer crude benchmarks.

Key Technical Levels and Road Ahead

Despite the welcome relief, market strategists caution against treating a single weekly rebound as a confirmed trend reversal. Over the prior eight-week slide, the Nifty had corrected 8.7% and the Sensex 8.4%. Analysts at Religare Broking and SBI Securities highlighted that the recovery remains selective, constrained by elevated bond yields and persistent foreign outflows.

Crucial Technical Parameters to Track:

• Immediate Support Zone: Technical analysts peg the 22,200–22,250 band as vital support for the Nifty 50; a break below could re-trigger the wider medium-term downtrend toward 21,700.
• Immediate Resistance Band: The 22,750–22,800 zone acts as primary overhead resistance, requiring a decisive breakout before any sustained advance toward 23,100–23,300 can unfold.
• Upcoming Macro Triggers: Domestic CPI and WPI inflation readings, corporate results from heavyweights like Hero MotoCorp and Nestle India, and US economic prints will determine whether bulls can retain momentum in the subsequent sessions.

Tags: BSE Sensex Nifty 50 Tata Consultancy Services IT Sector Reserve Bank of India NSE