Nifty IT Posts Biggest Weekly Rally Since 2008; Nifty Closes Above 23,100 for Second Straight Weekly Gain

Indian equity markets ended Friday's session on a positive note, with information technology (IT) stocks leading the gains and helping benchmark indices extend its recent rally. The rally followed Thursday's sharp rebound, which had lifted the Nifty close near to the 23,000 mark.

The BSE Sensex settled at 74,729.28, gaining 413.67 points, while the Nifty 50 closed at 23,146.15, up 148.80 points. Both indices overcame a subdued start as buying interest gradually strengthened during the trading session.

The Nifty recorded a weekly gain of 2.78%, its strongest performance since early April 2026. This also marked a second consecutive week of gains, indicating improving sentiment following the recent market correction.

Nifty IT Surges 11.72% in a Week, Records Strongest Rally Since April 2008

Information technology (IT) stocks remained the centre of attention on Friday, with encouraging quarterly earnings attracting buying interest across several large IT companies.

The Nifty IT index surged 3.92%, extending its gains for the fourth consecutive session. For the week, the index rallied 11.72%, marking its biggest weekly gain since April 2008.

Tech Mahindra emerged as the leading gainer, advancing 8.48% following its September quarter earnings announcement. The company reported quarterly revenue of ₹16,180 crore and secured new deals worth $1.02 billion, representing a 25.4% YoY increase in deal wins.

Wipro also gained 5.95% as investors responded positively to its quarterly revenue performance and business outlook. Meanwhile, TCS and Infosys witnessed strong buying, contributing to the broader recovery in technology shares.

Subdued Performance by Broader Markets

While heavyweight IT stocks led the benchmark indices higher, broader market performance remained relatively subdued.

The Nifty Midcap 100 and Nifty Smallcap 100 indices recovered from their intraday lows but relatively underperformed frontline indices. The Nifty Midcap 100 and Smallcap 100 indices ended lower by 0.11% and 0.01%, respectively. 

Crude Oil Prices Ease but Remain a Concern

International crude oil prices moderated from their recent highs, offering some relief to domestic equities.

Brent crude traded near USD 105 per barrel, compared with approximately USD 106 earlier in the week. Although the decline was relatively modest, it helped ease immediate concerns over rising energy costs.

For India, which depends heavily on crude oil imports, sustained higher oil prices can increase import expenses, put pressure on the rupee and contribute to inflation.

Stronger Rupee Adds to Positive Sentiment

The Indian rupee continued its recovery against the US dollar during Friday's trading session.

The domestic currency strengthened to approximately ₹94.96 per dollar, recovering from levels close to ₹97 earlier in the week.

The rupee appreciated around 2% during the week, recording its strongest weekly performance since March 2026.

European Markets Trade in Positive Territory

Major European equity markets were trading higher on Friday, October 16, with Germany's DAX leading gains among the three closely watched benchmarks.

The DAX advanced 290.73 points, or 1.15%, to 25,673.35, reflecting strong buying interest in German equities.

France's CAC 40 gained 37.43 points, or 0.47%, to trade at 7,972.13. Meanwhile, the UK's FTSE 100 rose 14.56 points, or 0.13%, to 10,854.91.

All three indices remained in positive territory at the time of observation, although European markets were still open for trading.

US Stock Futures Show Mixed Trend Ahead of Wall Street Opening

US equity futures displayed a mixed trend on Friday, indicating that investors remained selective ahead of the regular trading session.

Dow Jones futures increased 193 points, or 0.37%, to 52,623, while S&P 500 futures edged higher by 12.50 points, or 0.16%, to 7,803.50.

However, Nasdaq 100 futures slipped 27.75 points, or 0.09%, to 30,116, indicating mild pressure on technology-related stocks.