IT Rally Lifts Sensex and Nifty as Indian Markets End Higher

Mumbai, August 28: Indian stock markets closed higher on Friday, supported by strong buying in information technology stocks and a positive trend across global technology shares.

The Sensex climbed 331 points, while the Nifty 50 gained 85 points, as investors returned to select stocks after the market's recent weakness.

IT shares emerged as the main drivers of the day's recovery. Buying interest in the sector strengthened after a strong performance by technology stocks in global markets, with optimism around artificial intelligence and the outlook for technology spending supporting investor sentiment.

The global tech rally followed an upbeat outlook from US chipmaker Nvidia, which helped revive confidence in companies linked to artificial intelligence and the broader technology ecosystem. The positive trend provided additional support to Indian IT stocks.

Friday's gains came after the benchmark indices had declined in the previous two trading sessions. The recovery suggests that investors remain willing to buy quality stocks when valuations become attractive, although broader market sentiment continues to be influenced by global economic developments.

Investors are also closely tracking signals from the US Federal Reserve on interest rates. Any indication of a change in the pace of monetary easing could influence global bond yields, the US dollar and flows into emerging markets such as India.

Domestic investors are likely to keep an eye on foreign institutional flows, crude oil prices, the rupee and corporate earnings for further direction.

The day's rebound offered some relief to the domestic market, with technology stocks once again emerging as an important support for the major indices. Market participants, however, are expected to remain selective as global uncertainties continue to shape trading sentiment.

With the Sensex and Nifty ending the session in positive territory, investors will now look for fresh global and domestic cues to determine whether the recovery can continue in the coming sessions.