Stock Market Outlook: Indian equities staged a strong comeback this week, with the Nifty 50 rising 2.77% and the Sensex surging 3.11%, as renewed buying in information technology (IT) stocks, easing global bond-yield pressures and resilient domestic institutional inflows lifted investor sentiment.
Both benchmarks also extended their gains for a second consecutive session on Friday, strengthening hopes of a recovery after the recent market correction.
On Friday, the Sensex climbed 413.66 points, or 0.56%, to close at 74,729.27 on Friday, while the Nifty advanced 148.80 points, or 0.65%, to settle at 23,146.15. For the week, the Sensex gained 2,256.94 points, while the Nifty added 625.7 points.
However, the rally faces several tests, including whether earnings growth broadens beyond IT, foreign investor selling eases further and the Nifty breaks through immediate resistance. Market experts believe investors should remain selective as global macroeconomic uncertainty and domestic inflation concerns persist.
The September-quarter earnings season will remain a major driver of market sentiment. Investors will assess whether companies can deliver stronger revenue growth and margins across banking, consumption and industrials, rather than relying primarily on IT stocks to sustain the recovery.