Sensex, Nifty Surge Above 1% as Domestic Buying Outperforms Global Sell-off in Mixed Markets

Sensex, Nifty Surge Above 1% as Domestic Buying Outperforms Global Sell-off in Mixed Markets​

The Indian stock market finished a positive week on Friday, with the Sensex and Nifty 50 recording sharp gains despite persistent global volatility. The resilience of domestic stocks was attributed to strong Q1 earnings and robust sentiment surrounding IT and banking sectors. The Sensex surged over 964 points to close at 78,151, while the Nifty 50 rallied by approximately 262 points to end the session at 24,334.

Domestic Rally Driven by Large-Cap Focus​

The rally was concentrated heavily in large-cap stocks, signaling a distinct shift in market momentum away from mid and small caps. Vinod Nair, Head of Research at Geojit Investments, noted that strong traction is visible towards IT and banking sectors. This trend appears to be supported by domestic institutional investors who are rotating funds from expensive mid and small-cap stocks into attractively valued large caps offering a better risk-reward profile.

There is also emerging buying interest in consumer durables, driven by expectations of healthy domestic demand entering H2FY27. The broader market remains constructive, showing a mix of selective profit booking and focused buying as the overall outlook for India continues to improve.

Global Markets Confront AI Sell-off​

Meanwhile, global markets experienced significant downturns, with a widespread sell-off among artificial intelligence boom winners. The S&P 500 fell by 1%, marking its first losing week in three and only its third since the end of March. The Dow Jones Industrial Average dropped 406 points, or 0.8%. On the tech front, the Nasdaq composite sank 1.4%.

The oil market continued to jump due to ongoing tensions resulting from the war with Iran. European markets were dragged down by a global rout in tech stocks, leaving investors cautious ahead of upcoming central bank meetings and corporate earnings reports. The pan-European STOXX 600 index fell 0.34% to 641.53 points, remaining largely unchanged for the week.

European Tech Sector Breaks Consolidation​

The European stock indices show positive technical indicators in some areas. One tech index has successfully broken out of a five-day consolidation phase, suggesting improving optimism among traders and investors. This trend is reinforced by the RSI entering a bullish crossover.

Rupak De, Senior Technical Analyst at LKP Securities, suggested the near-term outlook for the European market remains strong, potentially advancing toward the 24,800 level. However, he cautioned that immediate support stands at 24,200, and any decisive fall below this threshold could trigger a new phase of consolidation.

Stocks Hitting Highs and Experiencing Selling Pressure​

Several stocks managed to reach their 52-week highs on the NSE. These included Federal Bank, Exide Industries, Sona BLW Precision, Himadri Speciality, Adani Transmission, Ipca Laboratories, and Gujarat Fluorochemicals. Conversely, some sectors faced considerable headwinds, with CEAT, Welspun Corp, Kirloskar Oil, Emmvee Photovoltaic, Vijaya Diagnostic, HFCL, and Gallantt Metal witnessing significant selling pressure.

The sentiment meter across the 3,419 stocks traded on Friday was decidedly bearish. Of all the stocks traded, 2,004 declined, while only 1,312 advanced, with 103 remaining unchanged.

Market Activity and Stocks of Interest​

In terms of turnover value, top performers included Kalyan Jewellers (Rs 3,037 crore), RIL (Rs 2,418 crore), Jio Financial Services (Rs 2,357 crore), BHEL (Rs 2,099 crore), Tech Mahindra (Rs 1,652 crore), ICICI Bank (Rs 1,598 crore) and Federal Bank (Rs 1,507 crore).

By trading volume, the most active stocks on the NSE included Vodafone Idea (27.54 crore shares traded), Suzlon Energy (11.14 crore), Jio Financial Services (9.6 crore), Yes Bank (7.55 crore), Kalyan Jewellers (5.39 crore), Groww (4.98 crore) and MRPL (4.97 crore).

Stocks that registered strong buying interest during the session included Clerx Services, Authum Investment, Federal Bank, Kalyan Jewellers, Afcons Infrastructure, Tech Mahindra and Bharat Forge. Among stocks registering 52-week lows were Vedanta and Go Digit General Insurance.