By Shishir Prashant 
PrashantNews
Amid skeptical optimism, Indian stock markets staged recovery on Friday, with the Sensex surging 879.09 points, or 1.23 per cent, and the Nifty climbing 288.65 points, or 1.30 per cent, a day after a sharp sell-off wiped out more than ₹10 lakh crore in investor wealth.
The rebound added nearly ₹3-4 lakh crore to the market capitalisation of BSE-listed companies, offering relief to investors after Thursday’s steep decline.
The 30-share BSE Sensex closed at 72,472.33, while the NSE Nifty 50 settled at 22,520.45, moving back above the crucial 22,500 mark.
ITC emerged as the top gainer among major stocks, rising 4.78 per cent to ₹266.20, Tata Consultancy Services (TCS) advanced 4.23 per cent to ₹2,163, while Adani Ports and Special Economic Zone gained 3.36 per cent to ₹1,760.00.
Other major contributors included Infosys, which rose 3.01 per cent, and HCL Technologies, which gained 3.15 per cent. Technology stocks attracted buying interest following TCS’s quarterly results, which highlighted growth in artificial intelligence-related revenues and international business.
The recovery extended beyond information technology, with banking, financial services, automobile and fast-moving consumer goods stocks also supporting the broader market. Most sectoral indices closed in positive territory.
However, Analysts said market sentiment remained cautious. Even though benchmark indices like the BSE Sensex and NSE Nifty staged a sharp technical rebound, analysts and investors treated the move as a vulnerable, narrow rally rather than a full-fledged return to bullish confidence.
Key Reasons Sentiment Stayed CautiousRelentless FII Outflows: Foreign Institutional Investors (FIIs) continued selling aggressively in the Indian equity markets, keeping broader institutional sentiment muted despite local buying interest.Narrow Sectoral Buying:
The rebound was heavily reliant on short covering and earnings-driven relief in select heavyweights—particularly IT stocks following strong Q2 results from Tata Consultancy Services (TCS)—rather than broad-based market participation.
Persisting Global Macro Risks: Concerns over geopolitical tensions in West Asia, elevated crude oil prices (with Brent hovering near key thresholds), and high global interest rates kept risk appetite tightly constrained. Technical Overhead Pressure: Market strategists noted that while the recovery was a welcome relief from earlier steep sell-offs, the benchmark indices face stiff resistance levels, leading traders to avoid aggressive directional bets until clear breakouts are sustained.