Indian equity markets returned to positive territory on Friday, January 16, snapping a two-day losing streak as strong buying in information technology stocks lifted the benchmark indices. Optimism around IT earnings, especially after Infosys raised its revenue growth guidance, helped offset weakness in several other sectors.
The Sensex closed 188 points, or 0.23 percent, higher at 83,570.35, while the Nifty 50 added 29 points, or 0.11 percent, to end the day at 25,694.35. The broader market remained mixed, with the BSE Midcap index edging up 0.15 percent, while the Smallcap index slipped 0.45 percent, reflecting continued pressure in smaller stocks.
Friday’s session offered some relief to investors after recent losses, but the narrow nature of the rally suggests that markets remain selective, with earnings and sector-specific cues continuing to drive sentiment.
IT heavyweights were the clear drivers of the day’s gains. Infosys emerged as the biggest contributor to the benchmarks after reporting better-than-expected third-quarter results and upgrading its revenue outlook. Shares of Tech Mahindra, TCS, HCL Tech and Wipro also posted strong gains, pushing the Nifty IT index up by 3.34 percent.
Banking stocks offered additional support to the market. HDFC Bank and State Bank of India were among the key gainers, aided by expectations of healthy Q3 earnings and improving asset quality trends. The Nifty Bank index rose 0.86 percent, while PSU banks outperformed with a gain of 1.16 percent.
Market experts, however, cautioned that the recovery remained fragile. Vinod Nair of Geojit Investments said positive momentum during the session was driven by strong IT earnings and encouraging trends in mid-segment banks, but profit booking towards the close capped the upside, resulting in only modest gains for the indices.
While IT and banking stocks shone, several sectors ended in the red. Pharma stocks faced selling pressure, with the Nifty Pharma index falling 1.28 percent. Healthcare and consumer durables also declined, weighing on overall market breadth.
Among individual stocks on the Nifty 50, Infosys jumped 5.58 percent, followed by Tech Mahindra, Wipro, HCL Tech and TCS. On the flip side, Cipla, Jio Financial Services and Eternal were among the top losers of the day.
Trading activity remained high in select counters. Vodafone Idea saw the highest volumes on the NSE, followed by Tata Silver Exchange Traded Fund and IFCI. On the BSE, nine stocks, including AuSom Enterprise, Vardhman Polytex and Antony Waste Handling Cell, surged more than 15 percent, while Silver Pearl Hospitality and Nexome Capital Markets plunged over 15 percent.
Despite the rebound in headline indices, market breadth stayed weak. On the BSE, declining stocks outnumbered advances, with over 2,350 stocks ending lower compared with around 1,850 gainers. As many as 84 stocks touched their 52-week highs during the session, while 260 stocks slipped to fresh 52-week lows, highlighting underlying caution among investors.
From a technical perspective, analysts said the Nifty is hovering near a crucial support zone. According to Sudeep Shah of SBI Securities, the 25,600–25,550 range, which coincides with the 100-day exponential moving average, will act as immediate support. A sustained move below this level could drag the index towards 25,400 and then 25,250. On the upside, resistance is seen in the 25,850–25,900 zone.
