Mumbai, Aug 28: Indian equity markets staged a recovery on Friday, with technology stocks emerging as the main drivers of the rebound after two consecutive sessions of losses.
The Sensex and Nifty traded higher, supported by strong buying in IT shares. The Nifty IT index gained nearly 3 per cent, making it the strongest-performing sector in the market. Major technology stocks, including TCS, Infosys and HCLTech, advanced around 2-4 per cent during morning trade.
The broader IT pack also witnessed strong buying interest. Shares of LTIMindtree, Coforge, Tech Mahindra, Wipro and Mphasis were among the other technology stocks trading higher, with some gains reaching around 5 per cent.
The rally in Indian IT stocks followed a strong performance by technology shares on Wall Street. Optimism around artificial intelligence received a fresh boost after Nvidia’s strong results and outlook, encouraging investors to reassess the growth potential of the global technology sector.
The gains provided some relief to domestic investors after Thursday’s sharp market decline. The previous session had been marked by significant volatility, particularly during the closing auction on the monthly derivatives expiry.
Despite Friday’s recovery, investors remained cautious. Market sentiment was being influenced by expectations surrounding Federal Reserve Chair Kevin Warsh’s speech at the Jackson Hole Symposium. Investors are looking for indications about the US central bank’s future interest-rate policy, which could influence global equity markets and foreign investment flows.
The rebound in IT stocks is particularly important for the domestic market because large technology companies have a significant presence in benchmark indices. Strong buying in these counters can provide meaningful support to the Sensex and Nifty even when other sectors remain under pressure.
However, the market recovery was not broad-based. Several sectors continued to face selling pressure, indicating that investors remained selective rather than returning to the market with broad-based buying.
For now, technology stocks remain at the centre of the market’s recovery. Investors will closely track whether the strength in TCS, Infosys, HCLTech and other IT companies can sustain through the session, while global interest-rate signals and market volatility remain key factors for the next move.