Mumbai, May 23 — Indian equity markets surged sharply on Friday, marking a strong turnaround after recent choppy trading sessions. The benchmark BSE Sensex climbed 950 points to close at 75,215.67, while the NSE Nifty added nearly 299 points, ending at 22,897.45. The sharp gains came on the back of improved investor confidence, renewed foreign capital inflows, and encouraging cues from global markets.
Renewed Foreign Interest and Global Stability Fuel Gains
Positive sentiment from international markets helped lift domestic stocks. Wall Street’s upbeat performance—fueled by stable economic readings and signs of a slower pace in U.S. rate hikes—triggered optimism across Asia, setting the tone for Indian equities.
Of particular note was the return of foreign institutional investors (FIIs), who had been net sellers in recent weeks. On Thursday, FIIs infused roughly ₹2,453 crore into Indian equities, according to provisional exchange data. Their renewed buying helped bolster confidence and provided strong support to frontline indices.
“Global risk sentiment is stabilizing, and with inflation fears easing, FIIs have re-entered Indian markets. The participation was broad-based, signaling a possible near-term reversal in trend,” explained Anjali Mehra, research head at EquiTrade Analytics.
Banking, IT, and FMCG Lead the Rally
Stocks across major sectors participated in the upmove, with heavyweight banks, IT companies, and consumer goods firms leading the charge. Prominent gainers included HDFC Bank, ICICI Bank, Infosys, Reliance Industries, and TCS. The Nifty Bank index alone surged over 2.5%, with all its components finishing in positive territory.
Broader indices also showed strength. The Nifty Midcap 100 gained 1.8%, and the Nifty Smallcap 100 rose by 1.5%, underlining widespread investor interest across market segments. More than 1,700 stocks advanced on the NSE, compared to just over 430 declines—a strong indicator of bullish breadth.
Currency and Commodities Reflect Risk-On Mood
The Indian rupee appreciated by 16 paise against the US dollar, closing at 82.51, aided by strong foreign inflows and improved risk appetite. Meanwhile, crude oil prices remained mostly unchanged, and gold witnessed minor selling pressure after recent upward moves.
Market Outlook: Temporary Bounce or Sustainable Trend?
Despite the enthusiasm, market experts suggest maintaining a cautious stance. “Today’s rally is positive, but further sustainability will hinge on upcoming economic indicators and central bank decisions. Volatility may continue until there’s more clarity,” said Rohan Vyas, market strategist at BMA Capital.
Technical charts show resistance for the Nifty near the 23,000 level, while support is seen at around 22,500. The next direction for the market will likely be guided by GDP data, corporate earnings, and developments from the U.S. Federal Reserve.
Conclusion
Friday’s impressive gains in the Indian stock market reflect a resurgence in investor confidence, supported by global stability and renewed FII activity. While this rally provides relief after a volatile spell, sustained momentum will depend on a mix of domestic and global economic signals. Investors will watch closely to see if this rebound marks the beginning of a longer-term upward trend.
