Sensex rises 308 points, Nifty reclaims 23,000 as IT and pharma lead; small caps slide

Indian equity benchmarks ended higher for a second consecutive session on Friday, helped by buying in information technology and pharmaceutical stocks, even as mid- and small-cap shares came under heavy selling.

The BSE Sensex closed at 74,459.53, up 308.49 points or 0.42 per cent. The NSE Nifty 50 gained 116.35 points, or 0.51 per cent, to settle at 23,053.10, moving back above the 23,000 mark.

IT stocks shine

The Nifty IT index rose about 2.3 per cent and the pharma index gained around 1.8 per cent. Among Nifty constituents, Trent was the top gainer, rising more than 5 per cent after its quarterly results, followed by InterGlobe Aviation, Infosys and Apollo Hospitals.

Shriram Finance, Mahindra & Mahindra, Adani Ports and Coal India were among the main losers. Consumer durables, public sector banks, energy and media stocks fell more than 1 per cent each.

Broader market under pressure

The gains were narrow. The Nifty Smallcap 100 dropped about 1.8 per cent and the Midcap index lost close to 1 per cent. On the NSE, 2,862 stocks declined while only 1,311 advanced, according to HDFC Sky's market report.

Analysts said weakness in global technology shares, amid concerns over returns on heavy AI spending, and continuing US-Iran tension kept investors cautious. Oil remained high, with Brent crude futures trading above $113 a barrel in the afternoon.

Foreign institutional investors were net sellers of about Rs 944 crore on Thursday, while domestic institutions bought shares worth about Rs 1,924 crore, provisional data showed.

In commodities, gold and silver futures on MCX eased during Friday's session.

What it means for investors

The split between rising large caps and falling small caps shows investors are favouring bigger, more liquid companies while oil prices and geopolitical risks remain elevated. Markets will watch crude prices, foreign fund flows and the remaining quarterly results in the coming week. This report is for information only and is not investment advice.