Stock markets staged a robust recovery on Friday, with the Sensex climbing 759.05 points to close at 79,802.79 and the Nifty 50 rising 216.95 points to settle at 24,131.10, rebounding from the previous session’s steep decline.

Sectoral performance showed broad-based strength, with most indices closing in positive territory. Notably, the Nifty Pharma, Healthcare, Media, and Oil & Gas sectors led the gains. Telecom major Bharti Airtel emerged as the top performer, surging 4.40 per cent, while pharmaceutical companies Sun Pharma and Cipla followed with gains of 2.87 per cent and 2.63 per cent respectively.

Market experts provided insights into the day’s trading dynamics. Vinod Nair, Head of Research at Geojit Financial Services, highlighted the market’s performance, stating, “A large-cap-driven, broad-based rally ensued in the domestic market. Discretionary sectors performed well, benefiting from the festive season.”

The market’s technical landscape was particularly interesting. Ajit Mishra, SVP of Research at Religare Broking, noted, “The December series began positively, with markets gaining nearly 1 per cent. Nifty surged early on, settling at 24,131 after a range-bound phase.” Mishra emphasised the importance of stock selection, particularly in the current market conditions.

Strong buying interest

Domestic investors showed strong buying interest, which was crucial in driving the market’s recovery. Ameya Ranadive, Senior Technical Analyst at StoxBox, observed, “Strong buying interest from domestic investors, attractive valuations, and renewed confidence in India’s growth story drove the rally.”

VIX drops

The volatility index (VIX) saw a significant drop, cooling off by 5.12 per cent to 14.43, indicating reduced market uncertainty. This supported the positive market sentiment and helped investors regain confidence.

Some specific stock movements caught attention. Adani group stocks — Adani Green Energy, Adani Energy Solutions, and Adani Total Gas — witnessed substantial gains of up to 23 per cent following their inclusion in the futures and options segment.

However, the market was not without its challenges. The trading day saw 1,606 declining stocks against 2,347 advancing stocks. Notably, Power Grid led the losers, declining 1.35 per cent, while other stocks like Shriram Finance and Hero Motocorp also experienced marginal losses.

Technical analysts provided varied perspectives on the market’s future trajectory. Nagaraj Shetti from HDFC Securities suggested a potentially bullish outlook, stating, “Further upside from here could confirm new higher bottom formation for the Nifty, which indicates completion of previous couple of months down trend.”

According to Manish Goel, Founder and Managing Director of Equentis Wealth Advisory Services, “Markets closed strong for the week ending November 29, driven by gains in Pharma and Media sectors. While political uncertainty in Maharashtra over the CM post and global trade tensions, including proposed tariffs by Donald Trump, could weigh on sentiment, Zomato’s Sensex inclusion and RBI’s expected rate cut are likely to boost investor confidence. The balance between these factors will shape market trends ahead.

Tejas Shah from JM Financial offered a more cautious view, noting, “As long as Nifty is holding above 23,800 mark, the present pull back rally which started a few days back is likely to continue.” Shah highlighted the importance of a decisive close above 24,350 levels for further market strength.

The market closed with 190 stocks hitting 52-week highs and only 24 touching 52-week lows, indicating overall positive market sentiment. Additionally, 373 stocks were in the upper circuit, while 207 were in the lower circuit.

As investors look forward to upcoming economic data releases, including India’s Q2 GDP and global economic indicators, the market appears poised for continued volatility and potential opportunities.

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