Mumbai, Oct 16 — The benchmark equity indices closed higher for a second consecutive session on Friday, supported by easing oil prices and strong buying in information technology stocks.
The Sensex advanced 413.70 points, or 0.56 per cent, to settle at 74,729.27, while the Nifty climbed 148.80 points, or 0.65 per cent, to end the session at 23,146.15.
Commenting on Nifty technical outlook, experts said that Following Thursday’s consolidation breakout, Nifty witnessed follow-up buying interest from the 22,900 levels, indicating improving near-term sentiment.
"If the index sustains above 23,000, the ongoing mean reversion rally could extend towards its 50-DMA in the 23,500–23,600 zone. However, the broader trend requires confirmation," analysts stated.
"The immediate support is placed at 22,800, while resistance is seen at 23,200. Sustaining above 23,000 remains crucial for further upside momentum," market watchers added.
Gains were led by IT stocks, with Tech Mahindra, Tata Consultancy Services (TCS), and Infosys emerging as the top performers on the Nifty index.
The rally in technology shares helped offset weakness in several other sectors and provided momentum to the broader market.
Among sectoral indices, the Nifty IT index registered the strongest gains during the session.
In contrast, the Nifty Oil and Gas index was the biggest laggard as energy-related stocks remained under pressure.
Despite the gains in the benchmark indices, the broader market witnessed a subdued trend.
The Nifty Midcap 100 index ended 0.11 per cent lower, while the Nifty Smallcap 100 index slipped 0.01 per cent.
Experts said that market sentiment remained supported by softer crude oil prices, which eased inflation concerns and boosted risk appetite among investors.
"The sectoral divergence reflects investors’ preference for earnings visibility amid persistent cost pressures. While rupee appreciation and easing crude prices provide near-term support, global inflationary and geopolitical risks warrant caution," analysts stated.
"Sustaining the recovery will require broader earnings growth beyond IT, supported by an improvement in domestic demand and easing margin pressures," market watchers noted.