Indian stocks extend gains as IT buying lifts Sensex and Nifty 50

what happened

According to Moody's, India's benchmark indices gained for a second straight session on Friday, helped by heavy purchases of IT companies and a rise in Trent, the retail arm of the Tata Group. The Sensex added 0.42% to close at 74,459.53, while the Nifty 50 rose 0.51% to 23,053.10. Over the week the Sensex climbed 1.8% and the Nifty 2%. For October, the Sensex ended 2.7% higher, snapping a two-month slide, and the Nifty gained 1.9%.

Foreign portfolio investors purchased more than 14,000 crore rupees of shares over the week, including primary-market deals, while domestic institutions bought another 7,062 crore. The debut of Jio Platforms, the country's largest IPO, ended its first day 21.4% above the offer price, adding to the positive mood. Traders also took the Federal Reserve's decision to keep rates unchanged in stride, although the central bank still signaled concern about inflation.

Breadth was weaker than the headline numbers suggest, with 1,013 stocks advancing and 2,511 declining. The Nifty IT index jumped 2.32%, while consumer durables fell 1.78%. Nifty Bank rose 1.18% to 54,909.65, with Kotak Mahindra Bank up 4.32%.

why it matters

Moody's notes that the rebound reflects firmer short-term sentiment, yet the broader trend remains cautious, with the indices still below their 50-, 100- and 200-day moving averages. Brent crude near $115 a barrel is flagged as a key risk to the outlook, so investors will watch foreign fund flows and the Fed's next moves closely.

market impact

Indian equities: IT buying and foreign inflows support Nifty 50 and Sensex

• ▲Nifty 50 pressure up — buying in IT companies and inflows from foreign investors

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