Sensex ends 413 points higher, Nifty above 23,100; TechM up 8%

Strong buying in information technology stocks, led by Tech Mahindra, Infosys and TCS, supported the benchmarks as investors responded to encouraging second-quarter earnings and developments in global technology markets.Stock markets extended their recovery for a second consecutive session on Friday, with the Sensex rising over 400 points and the Nifty closing above the 23,100 mark.Strong buying in information technology stocks, led by Tech Mahindra, Infosys and TCS, supported the benchmarks as investors responded to encouraging second-quarter earnings and developments in global technology markets.The BSE Sensex gained 413.66 points, or 0.56%, to close at 74,729.27. The NSE Nifty 50 advanced 148.80 points, or 0.65%, to settle at 23,146.15.The gains followed Thursday's sharp rally, when the benchmark indices posted their biggest single-day gains in four months. Friday's advance was led by IT stocks, which extended their winning streak to four sessions, while buying in auto and metal shares also supported sentiment.TECH MAHINDRA, INFOSYS AND TCS LEAD GAINS Tech Mahindra was the top Sensex gainer, surging 8.45%. TCS advanced 4.61%, while Infosys climbed 4.55%. Bharti Airtel gained 2.86% and Mahindra & Mahindra rose 2.38%.Other notable gainers included Bajaj Finance, up 1.38%; HCLTech, up 1.08%; and NTPC, which advanced 0.76%. UltraTech Cement gained 0.58%, while Maruti Suzuki rose 0.50%. On the losing side, IndiGo fell 2.23%, while Reliance Industries declined 1.09%. Asian Paints dropped 1%, and ITC slipped 0.66%. Larsen & Toubro fell 0.66%, while Kotak Mahindra Bank declined 0.63%.The performance reflected strong demand for select large-cap stocks, particularly technology companies, although losses in several heavyweight stocks limited the broader advance.IT INDEX JUMPS NEARLY 4%The Nifty IT index surged 3.92%, making it the strongest-performing sectoral index in the latest market snapshot. The rally came after better-than-expected second-quarter revenue from Tech Mahindra and Wipro, alongside encouraging results and management commentary from other major IT companies.The global correction in artificial intelligence-linked stocks has also helped improve India's relative appeal, encouraging investors to look at domestic large-cap technology companies.The Nifty Media index gained 1.92%, while the Nifty Auto index advanced 0.75% and the Nifty PSU Bank index rose 0.67%. The Nifty Metal index gained 0.95%, while the Nifty Private Bank index edged up 0.08%.However, several sectors ended lower. The Nifty FMCG index declined 0.39%, the Nifty Realty index fell 0.33% and the Nifty Pharma index slipped 0.14%. The Nifty Financial Services 25/50 index edged down 0.05%.BROADER MARKETS REMAIN SUBDUEDThe broader market did not keep pace with the benchmark indices. The Nifty 100 rose 0.61%, the Nifty 200 gained 0.47% and the Nifty 500 advanced 0.40%.In contrast, the Nifty Midcap 50 declined 0.06%, while the Nifty Midcap 100 fell 0.11%. The Nifty Smallcap 100 was nearly flat, slipping 0.01%.This divergence suggests that the recovery remained concentrated in large-cap stocks, particularly IT companies, rather than reflecting widespread buying across the market.India VIX, which measures expected market volatility, rose 0.35% to 14.08.WHAT IS DRIVING THE MARKET RECOVERY?Ajit Mishra, Senior Vice-President of Research at Religare Broking, said markets extended their recovery for a second consecutive session, supported by buying in select heavyweight stocks, particularly technology companies.He said IT stocks had led sectoral gains for the fourth consecutive session, rising around 4% amid sustained earnings-driven momentum. Metal and auto stocks also contributed to the positive sentiment, while weakness in select FMCG, realty and energy heavyweights capped the upside.Mishra said the recent buoyancy in IT stocks following quarterly results had been the primary driver of the market rebound, with other sectors playing a supporting role.The rupee's strengthening against the US dollar offered some relief to domestic sentiment. However, Brent crude remained elevated near $106 a barrel, while concerns over persistent inflation and US bond yields continued to warrant caution.WHAT SHOULD INVESTORS WATCH NEXT?Investors will track the next set of quarterly earnings, developments in global markets and foreign investor flows for direction. Results from major banking players, including HDFC Bank, Axis Bank and ICICI Bank, are among the key events to watch in early trade on Monday.From a technical perspective, Mishra said the Nifty was approaching the 23,300 level. A decisive breakout above this level could extend the recovery towards 23,500-23,700, while the 22,700-22,900 zone is expected to provide support.He maintained a positive but cautious outlook, citing the mixed market signals and busy earnings calendar. For investors, the key question is whether earnings-led buying in large-cap stocks can broaden into mid- and small-cap shares, while elevated oil prices and global inflation risks remain important headwinds.- Ends