The Indian stock market witnessed a significant rebound by midday on Friday, with the Sensex climbing 806.08 points or 1.13% to 72,399.32 at 13:05 pm. The Nifty 50 also rose 261.35 points or 1.18% to 22,493.15. The surge in these benchmarks was primarily driven by a rally in the IT and banking sectors, as short-covering activities contributed to the upward momentum.
The advance-decline ratio for the Nifty stood at 46:4, highlighting the breadth of the market recovery. On the Bombay Stock Exchange (BSE), a total of 2,195 stocks advanced while 1,955 stocks declined. Despite this positive trend, the market showed signs of underlying weakness, with 92 stocks reaching 52-week highs, compared to 225 stocks hitting 52-week lows.
- ITC emerged as a top gainer — with shares rising 4.33% to ₹266.05.
- TCS reported strong earnings — posting a 14.9% year-on-year profit increase to ₹13,884 crore, pushing its stock up 3.71% to ₹2,153.00.
- Eicher Motors and Apollo Hospitals — saw increases of 3.60% and 3.52% respectively, reflecting strong investor confidence.
Despite the gains, analysts remain cautious due to ongoing macroeconomic pressures, including sustained foreign selling. Foreign portfolio investors have reportedly offloaded ₹36,210 crore worth of equities in October so far, marking ten consecutive sessions of net selling. The recent 25-basis-point rate hike by the Reserve Bank of India to 5.50% and elevated U.S. Treasury yields continue to challenge the attractiveness of emerging markets.
The IT sector, although facing regulatory scrutiny, notably from Washington regarding employment programs, still managed to thrive on the day. Analysts observed that the immediate operational impact of these regulatory issues might be limited. However, they cautioned that increased localization and compliance costs could become significant in the near future.
