New Delhi: Market benchmark indices ended sharply higher on Friday, with the Sensex climbing 964.58 points and the Nifty reaching the 24,330 level, propelled by buying in blue-chip Reliance Industries, bank and IT stocks.
Additionally, a strengthening rupee against the US dollar improved sentiment, even as the broader market remained predominantly negative due to weak global cues, traders said.
After a subdued ending in the previous trade, the 30-share BSE Sensex bounced back 964.58 points, or 1.25 percent, to settle at 78,151.45. During the day, it surged 1,095.68 points, or 1.41 percent, to 78,282.55.
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The 50-share NSE Nifty climbed 261.55 points, or 1.09 percent, to end at 24,334.30.
"There is a shift in market momentum, with strong traction moving toward large-cap stocks, led by the IT and banking sectors. This is supported by optimism around business updates and Q1 earnings expectations," Vinod Nair, Head of Research, Geojit Investments Limited, said.
The trend appears to be driven largely by domestic institutional investors rotating out of expensive mid and small-cap stocks and into more attractively valued large caps that offer a better risk-reward profile, he added.
On the weekly front, the BSE benchmark climbed 582.06 points, or 0.75 percent, and the Nifty went up by 127.4 points, or 0.52 percent.
From the Sensex pack, Tech Mahindra jumped 3.91 percent after it reported a 28.4 percent rise in consolidated net profit for the June quarter to Rs 1,465 crore, and expressed confidence about the demand environment.
Kotak Mahindra Bank, Tata Consultancy Services, Reliance Industries, Hindustan Unilever, Mahindra & Mahindra, Axis Bank, ICICI Bank and Bajaj Finance were also among the winners.
Reliance Industries is scheduled to announce its June quarter earnings later in the day.
Sun Pharma, Trent, Bharti Airtel and UltraTech Cement were among the laggards.
The BSE SmallCap Select index declined 0.32 percent, and the MidCap Select index dipped 0.07 percent.
Among sectors, Private Banks Index climbed 1.81 percent, Top 10 Banks jumped 1.78 percent, MidSmall Private Banks Quality Tilt (1.65 percent), Bankex (1.58 percent), IT (1.38 percent), Focused IT(1.28 percent) and Financial Services (1.20 percent).
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Commodities, Industrials, Telecommunication and Metal were the laggards.
Brent crude, the global oil benchmark, climbed 1.79 percent to USD 85.52 per barrel.
The rupee appreciated 14 paise to settle at 96.28 (provisional) against the US dollar on Friday.
"Indian equity markets ended the week on a strong note, extending their recovery as broad-based buying in heavyweight banking, financial, and IT stocks helped benchmark indices outperform weak global cues. Investor sentiment remained resilient despite persistent concerns over elevated AI valuations, ongoing geopolitical tensions in the Middle East, and heightened volatility in global markets," Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said.
Expectations of healthy quarterly earnings from index heavyweights, including Reliance Industries and leading private sector banks, further supported the positive momentum, he added.
In Asian markets, Japan's Nikkei 225 index, Shanghai's SSE Composite index and Hong Kong's Hang Seng index ended significantly lower. Markets in South Korea were closed on Friday.
Markets in Europe were quoting in negative territory in mid-session deals.
US markets ended lower on Thursday.
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Foreign Institutional Investors (FIIs) offloaded equities worth Rs 4,205.56 crore on Thursday, according to exchange data.
On Thursday, the Sensex edged up 1.44 points to settle at 77,186.87. The Nifty dipped 5.75 points, or 0.02 percent, to end at 24,072.75.
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