October 12, 2025

Indian stock markets wore their brightest smile on Friday, closing higher and marking the best weekly gain since late June! The secret sauce? A lively comeback from the IT and bank sectors and a drop in foreign institutional selling. This combo topped up investors' spirits, with the Nifty and Sensex enjoying powerful climbs. On Friday, the NSE Nifty jumped 103.55 points (0.4%) to settle at 25,285.35. Not far behind, the BSE Sensex closed 328.72 points (0.4%) higher at 82,500.82. Over the week, both indices surged 1.6%, signaling that the market mood has taken a bullish turn. “Market sentiment has turned bullish as the Nifty moved above the 25,000 mark, triggering renewed buying interest and driving the indices higher,” said Aamar Deo Singh, senior vice president of research at Angel One. Isn't crossing 25,000 like a green signal flashing for buyers? The IT sector, often a rollercoaster, climbed a handsome 4.9% this week, while the bank index gained a steady 1.8%. Chandan Taparia, head of technical and derivatives research at Motilal Oswal Financial Services, explained, “The Nifty Bank is now starting to outperform, while the IT index appears to have bottomed out and is beginning to recover, aiding Nifty's up move.” Looks like both sectors teamed up to fuel this rally! Even the market’s fear gauge, India’s Volatility Index, eased by 0.2% to 10.1, dropping nearly 4% this week. This hints that traders feel less risk ahead, making the market atmosphere calmer and more inviting. Foreign investors joined the party too! They net bought shares worth Rs 459.2 crore on Friday alone. Over the last four sessions, foreign portfolio investors purchased shares worth almost Rs 3,950 crore. Domestic institutions were busy too, buying shares worth Rs 1,707.8 crore. With foreign selling easing and derivative positions looking oversold, Taparia hinted at more fireworks: “A short-covering rally cannot be ruled out as the Nifty approaches its resistance near 25,500. A sustained move above this level could see the index advance toward 26,000.” Will the Nifty break this barrier soon? The broader market saw more smiles with the Nifty Midcap 150 index up 0.4% and the Nifty Small-cap 250 rising 0.6% on Friday. Out of 4,343 stocks traded on BSE, a healthy 2,424 advanced, while 1,766 slipped, and 153 stayed flat. While Indian markets pumped up the volume, Asia saw a mixed picture. Shares fell in Japan (-1%), China (-0.9%), and Hong Kong (-1.7%), but rose in South Korea (1.7%) and Taiwan (0.9%). Across Europe, the Stoxx 600 index slipped 1.2%. As eyes turn to the upcoming second-quarter earnings in the next three weeks, everyone waits to see if this bullish wave holds strong. For now, the Indian market dance definitely has some sparkle and spice!

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Tags: Indian stock market, Nifty, Sensex, Bank stocks, It stocks, Foreign institutional investors,