In a remarkable turnaround, Indian equity markets concluded their best week in over three months, spearheaded by strong rallies in IT and pharmaceutical stocks. The BSE Sensex closed at 82,501, up by 329 points, while the Nifty 50 gained 104 points to settle at 25,285, marking weekly gains of 1.59% and 1.57%, respectively.
This rally was fueled by a significant shift in foreign institutional investor (FII) sentiment, which saw an inflow of ₹1,751 crore in equities—marking a notable reversal after 12 weeks of continuous selling. Boosted by this inflow, key sectors such as IT and pharma led the charge, with Tata Consultancy Services, Infosys, and HCL Technologies in IT, alongside pharma giants like Divi’s Laboratories and Laurus Labs, registering impressive gains.
The pharmaceutical sector received an additional boost following the US Senate’s approval of the Biosecure Act, which restricts federal contracts with Chinese biotech firms, opening huge opportunities for Indian companies in the global supply chain. Meanwhile, the IT sector regained momentum despite some companies posting weaker quarterly results, reflecting growing investor confidence.
Banking stocks also supported the positive market momentum, benefiting from the Reserve Bank of India’s decision to maintain the repo rate and a government-backed leadership change at the State Bank of India. Market experts attribute this optimism to easing global inflation concerns and a favorable outlook on emerging market assets.
For investors and market watchers, this surge highlights a renewed appetite for Indian equities, driven by strategic sectoral developments and foreign participation that could sustain market gains in the near term.
