Sensex, Nifty extend gains for second day as FPIs return; financials, pharma led the rally
CHENNAI: Indian equity markets ended higher on Friday, October 10, supported by sustained buying in financial and pharma stocks and a steady return of foreign portfolio investor inflows. The benchmarks extended their winning streak for the second straight session, closing with modest gains despite mixed global cues and profit-booking in select heavyweights.
The BSE Sensex rose 328 points, or 0.40 percent, to close at 82,500.82, while the NSE Nifty 50 advanced 103 points, or 0.41 percent, to settle at 25,285.35. Broader indices also moved higher, with the Nifty Midcap index gaining around 0.36 percent and the Smallcap index rising about 0.59 percent. Market breadth remained positive, with more stocks advancing than declining on both exchanges.
Investor sentiment improved as foreign portfolio investors continued their recent buying spree, adding to optimism around India’s macro stability. Easing global risk concerns and firm domestic liquidity conditions also supported the uptrend. Banking and financial stocks were among the key drivers, while sectors such as pharma and realty added strength to the broader market.
However, IT shares came under pressure after Tata Consultancy Services (TCS) reported a subdued second-quarter performance. The TCS stock slipped over 1 percent, dragging the Nifty IT index lower. Metal stocks were also weak, with Tata Steel and JSW Steel ending in the red.
Among individual gainers, Cipla, SBI, Bajaj Auto, and Maruti Suzuki registered solid advances. ITC also outperformed with gains of about 0.7 percent, while Reliance Industries ended with a marginal uptick. On the losing side, TCS and Tech Mahindra weighed on the technology pack.
The rupee appreciated by about 10 paise to close at 88.69 against the US dollar, supported by steady foreign inflows. Globally, investor sentiment remained cautious ahead of key US inflation data and the next leg of corporate earnings from Wall Street.
Analysts said the Nifty continues to show a short-term upward bias but may face resistance around the 25,450 zone. Immediate support lies near 25,150. The ongoing earnings season and macro signals from global markets are expected to set the tone for next week’s trading.
Overall, the market tone remains constructive, with renewed FPI participation and firm domestic demand providing comfort. However, analysts expect intermittent volatility as investors adjust positions in response to corporate earnings and global developments.