Indian equity benchmarks staged a strong recovery on Friday, with the BSE Sensex climbing more than 800 points to the 77,780 level, while the NSE Nifty advanced to 24,266, driven by robust buying in information technology and banking stocks.

The rally came after a largely flat session on Thursday, reflecting renewed investor confidence in heavyweight sectors despite mixed global market cues and continued geopolitical uncertainty.

IT, Banking Drive Market Gains

Technology and banking stocks emerged as the biggest contributors to the day's rally. Shares of Tech Mahindra, HCL Technologies, Infosys, Tata Consultancy Services (TCS), Mahindra & Mahindra, and Reliance Industries were among the top gainers on the Sensex.

The Nifty IT index outperformed all other sectoral indices, supported by fresh buying interest in large-cap software companies. Banking stocks also witnessed sustained demand, helping broader benchmark indices maintain upward momentum throughout the trading session.

Sectoral Trend Remains Mixed

Despite the overall market strength, sectoral performance remained uneven. While IT and banking stocks led gains, the media and pharmaceutical sectors witnessed selling pressure, making them the day's weakest performers.

Analysts said investors continued to prefer sectors considered relatively resilient amid global uncertainty, while profit-booking was visible in select defensive counters.

Oil Prices Edge Higher

Global crude oil prices remained elevated, trading near $85 per barrel, as geopolitical tensions in the Middle East continued to influence energy markets.

Recent comments by US President Donald Trump indicating that the agreement with Iran had effectively ended have heightened concerns over regional stability, contributing to the upward movement in crude prices. Higher oil prices remain an important factor for Indian markets because they can influence inflation, corporate earnings and the country's import bill.

Asian Markets Under Pressure

While Indian markets traded firmly in positive territory, most major Asian equity markets ended lower.

South Korea's KOSPI recorded the steepest decline, falling more than 6 per cent, while Japan's Nikkei and Hong Kong's Hang Seng also closed in negative territory. Weak global sentiment reflected investor caution amid geopolitical developments and concerns over global economic growth.

US markets had also closed lower in the previous session, with the Dow Jones, Nasdaq Composite and S&P 500 ending in the red, providing a subdued global backdrop for Asian trading.

Foreign Investors Continue Selling

Foreign Institutional Investors (FIIs) remained net sellers in the Indian market on Thursday, offloading equities worth ₹4,206 crore.

However, Domestic Institutional Investors (DIIs) continued to provide support by purchasing shares worth ₹2,987 crore, helping offset foreign selling pressure. Market participants said sustained domestic institutional inflows have remained a key pillar supporting Indian equities in recent months.

Rupee Strengthens Against Dollar

The Indian rupee appreciated by 14 paise against the US dollar to trade at 96.28, aided by positive domestic equity sentiment and improved investor confidence.

Currency movements will continue to be monitored closely, particularly amid fluctuating crude oil prices and evolving global economic conditions.

Previous Session

On Thursday, benchmark indices had ended on a muted note. The Sensex closed at 77,186, marginally higher by one point, while the Nifty settled at 24,072, down five points. Realty stocks witnessed the sharpest selling pressure during the previous trading session before Friday's broad-based recovery.

Market experts believe investors will continue tracking global geopolitical developments, crude oil prices, institutional investment flows and upcoming corporate earnings for further direction.