Sensex and Nifty bounce back after early slide even as IT shares lag

Equity markets staged a modest comeback on Friday with key indices recovering from initial losses to close in positive territory, as renewed investor interest in prospective trade developments offered some traction to risk assets. Domestic benchmarks shrugged off early weakness, driven by persistent pressure on technology stocks, to end the session with modest gains.

The NSE Nifty 50 rose 0.2 per cent to finish near 25,694, while the BSE Sensex added 0.3 per cent to close around 83,580. Both indices managed to extend their weekly advance, marking the second straight week of positive returns.

Market participants said optimism over potential progress in a US-India trade arrangement provided a counterbalance to the global sell-off in technology shares, which weighed heavily on the domestic IT pack. The Nifty IT index declined for the week, mirroring weakness in global tech stocks amid rising concerns over spending trends in major overseas markets.

Elsewhere in Asia, most bourses traded lower, reflecting broader risk aversion among global investors. Sentiment on Dalal Street was also shaped by mixed cues from overseas markets, with investors navigating between short-term concerns and a backdrop of macroeconomic developments.

Market breadth was relatively balanced as gains in financials and select cyclical sectors helped offset losses in technology and other defensives. Strategic buying in mid-cap and small-cap segments provided additional support as traders positioned for the weekend.

Overall, the session reflected a cautious recovery as investors balanced near-term risks against longer-term opportunities in equities.