Our Business Correspondent
Indian equity benchmarks staged a strong rebound on Friday, snapping a two-session losing streak as a sharp rally in information technology stocks, supported by upbeat global technology sentiment after Nvidia’s results, helped the market overcome weakness in select heavyweight banking and consumer-facing counters. The recovery, however, was not enough to erase the week’s losses. The Sensex and Nifty ended the week lower by about 0.4% and 0.3%, respectively, marking their third consecutive weekly decline, according to Reuters.
The S&P BSE Sensex advanced 330.92 points, or 0.43%, to 77,264.51, while the Nifty 50 rose 84.80 points, or 0.35%, to 24,175.65. The two benchmarks had declined 0.93% and 1%, respectively, over the preceding two trading sessions.
The day’s recovery was largely technology-led. The Nifty IT index jumped 3.51% to 31,281.70, reversing part of its 1.79% decline over the previous two sessions. The sector benefited from stronger global technology sentiment after Nvidia delivered strong quarterly results and an upbeat outlook, reinforcing expectations that spending on artificial-intelligence infrastructure will remain robust. Reuters also identified Nvidia’s results as a major support for Indian IT shares on Friday.
IT stocks lead the rebound
The technology sector emerged as the biggest driver of the day’s gains.
Coforge surged 5.93%, while LTIMindtree gained 4.73% and Tata Consultancy Services advanced 4.16%. Persistent Systems rose 3.91%, Tech Mahindra 3.53%, Infosys 2.99%, Oracle Financial Services Software 2.83%, HCL Technologies 2.66% and Mphasis 1.72%.
The rally reflected renewed optimism that sustained investment in artificial intelligence, cloud computing and enterprise technology could support demand for Indian technology services.
Wipro gained 2.58% after announcing an expansion of its partnership with Google Cloud aimed at accelerating enterprise-wide adoption of Gemini Enterprise and agentic artificial intelligence solutions.
The global technology cue was particularly strong after Nvidia’s results strengthened expectations around continued AI infrastructure spending. On Wall Street on Thursday, the Nasdaq rose 1.57%, while the S&P 500 gained 0.72% and the Dow Jones Industrial Average advanced 0.20%. Nvidia shares jumped 8.7% after its results and forecast reinforced expectations of sustained demand for AI infrastructure.
Broader market remains selective
The rebound was not uniform across sectors.
Pharmaceutical and metal stocks also recorded gains, while FMCG and consumer durable stocks came under pressure. Among the Sensex constituents, IT stocks such as TCS, Infosys, Tech Mahindra and HCL Technologies were among the key gainers, while ICICI Bank, UltraTech Cement, Asian Paints and ITC were among the notable laggards.
The broader market nevertheless maintained a positive tone. The BSE 150 MidCap Index rose 0.16%, while the BSE 250 SmallCap Index gained 0.33%.
Market breadth was positive, with 2,385 shares advancing against 1,932 declines, while 248 stocks remained unchanged on the BSE.
The gains suggested that domestic buying interest remained present, although investors continued to adopt a selective approach amid concerns over crude oil, US monetary policy and recent volatility surrounding the new closing-auction mechanism.
Sharp swings during closing auction
One of the most closely watched developments was the volatility in the final phase of trading.
The market witnessed sharp movements during the Closing Auction Session (CAS), which determines official closing prices for eligible stocks. The mechanism has attracted increased attention following unusually large swings around recent monthly derivatives-expiry sessions.
Reuters reported that concerns remain about whether the new closing-auction process can absorb large institutional orders without causing excessive price dislocation or liquidity stress. The Securities and Exchange Board of India has indicated that it is not considering immediate changes to the mechanism.
The issue is particularly important for institutional investors because closing prices are used in the valuation and settlement of several financial products. Any sharp movement in the final minutes can therefore have consequences beyond the cash market.
The market will receive another test when MSCI-related flows become effective after the close on August 31, with passive-fund orders potentially creating significant concentration in certain stocks. (Reuters)
Fed policy remains a major trigger
Investor sentiment also remained cautious ahead of Federal Reserve Chair Kevin Warsh’s first major address at the annual Jackson Hole economic symposium in Wyoming.
Markets were looking for clues on the US central bank’s approach to inflation and interest rates, particularly against the backdrop of elevated Treasury yields and uncertainty over the future direction of monetary policy.
The US 10-year Treasury yield was up 0.26% at 4.684%, while the US Dollar Index rose 0.06% to 99.22.
The Indian market’s sensitivity to US rates remains high because a sustained rise in US bond yields can influence foreign capital flows towards dollar-denominated assets and place pressure on emerging-market valuations.
Warsh’s speech was delivered after Indian market hours. His remarks later highlighted persistent inflation concerns, although he did not provide a specific timetable for future rate moves. Reuters reported that he explicitly said his comments should not be interpreted as forward guidance.
Oil, rupee and bond yields
Crude oil remained another factor limiting market enthusiasm. Brent crude for October 2026 settlement declined 27 cents, or 0.30%, to $89.43 a barrel. Although oil prices eased marginally, they remained high enough to keep concerns alive over India’s import bill, inflation and corporate margins.
The rupee strengthened slightly against the dollar, with the partially convertible currency hovering around 95.4075 per dollar, compared with 95.4400 in the previous session.
The movement in the domestic currency came despite continued pressure from elevated global yields and crude prices.
The domestic bond market, meanwhile, saw yields rise. The yield on India’s 10-year benchmark government security increased 0.35% to 6.916%, from 6.851% in the previous session.
Gold remained firm, with MCX Gold futures for October 5, 2026 settlement rising 0.48% to ₹1,59,765.
Global markets provide support
European equities moved higher and Asian markets were broadly firm, with technology shares leading the recovery following Nvidia’s strong performance.
In Japan, inflation remained an important policy indicator. Tokyo’s core consumer prices rose 1.8% year-on-year in August, compared with 1.7% in July, while a measure excluding both fresh food and energy increased 2%. The figures kept attention focused on the Bank of Japan’s monetary-policy outlook.
In the United States, initial jobless claims fell by 4,000 to 203,000 in the week ended August 22, pointing to continued resilience in the labour market.
At the same time, the US goods trade deficit widened to $118.8 billion in July, from $101.4 billion in June, potentially creating a drag on third-quarter economic growth.
Stocks in focus
Tejas Networks jumped 7.63%, while TCS gained after Tejas received a Letter of Intent from TCS for supplying equipment for BSNL’s 4G mobile network.
Great Eastern Shipping Company rose 1.70% after its board approved a share buyback of up to ₹900 crore through the open-market route at a maximum price of ₹1,530 per share. The company plans to buy back up to 58,82,352 shares, representing as much as 4.12% of its paid-up equity capital.
Ather Energy surged 8.09%, while Hero MotoCorp gained 0.90% after Hero approved an additional investment of up to ₹1,758 crore in Ather. Hero’s fully diluted holding is expected to rise from 29.88% to approximately 32.8%. The transaction was expected to be completed by September 3.
The move underlines Hero MotoCorp’s increasing strategic exposure to the electric two-wheeler segment.
Yatharth Hospital & Trauma Care Services slipped 0.58% amid reports that Advent International and Blackstone-backed Aster DM Quality Care were discussing a possible acquisition of a controlling stake in the hospital chain.
Tempsens makes strong debut
The primary market also remained active. Tempsens Instruments made a strong debut, listing at a substantial premium to its issue price of ₹300. The stock closed at ₹586.80 on the BSE, representing a gain of 95.6% over the issue price. It touched an intraday high of ₹635 and a low of ₹551.20.
The IPO had attracted strong investor demand before listing, underlining the continuing appetite for new-age and specialised manufacturing businesses despite the volatility in the broader market.
IPO activity remains robust
The primary market continued to attract substantial investor interest.
Lumino Industries received bids for 30,45,24,948 shares against 6,32,05,127 shares on offer, translating into subscription of 4.82 times as of 4:45 p.m. The issue opened on August 27 and will close on August 31, with a price band of ₹78-82 per share.
Annu Projects received bids for 5,14,44,492 shares against 1,76,83,000 shares available, resulting in subscription of 2.91 times. Its ₹94-99 issue closes on August 28.
Priority Jewels, which opened on August 28, received bids for 61,02,525 shares against 32,02,500 shares on offer, making the issue 1.91 times subscribed.
ESDS Software Solution received bids for 2,57,24,400 shares against 1,23,52,942 shares on offer, taking subscription to 2.08 times.
The strong response to several issues indicates that investor appetite for primary-market opportunities remains intact even as the secondary market grapples with global macroeconomic uncertainty.
Outlook
Friday’s rebound provided relief to investors after two consecutive sessions of losses, but the week’s performance underlined the fragile nature of the recovery.
Technology stocks provided a powerful cushion, with the Nvidia-led global AI optimism reviving buying interest in Indian IT majors. At the same time, expensive crude, elevated US bond yields, uncertainty over US interest rates and concerns surrounding the new closing-auction mechanism remain important risks.
Reuters noted that the Sensex and Nifty nevertheless ended the week lower for a third consecutive week, their longest weekly losing streak in five months.
For the domestic market, the next phase is likely to depend on a combination of global monetary-policy signals, crude-oil movements, foreign fund flows and the ability of corporate earnings to justify valuations.
Disclaimer: This article is for a journalistic business reporting purposes. It is not investment advice. Readers are advised to consult certified financial professionals before making investment decisions.