Sensex gains 187 pts, Nifty above 25,650; what's ahead for stock market next week?

Domestic equity benchmarks Sensex and Nifty ended Friday’s session on a positive note, snapping a two-day losing streak. The surge was led by IT counters after Infosys posted better-than-expected quarterly earnings, boosting sentiment across the technology pack. Banking stocks also lent support to the market’s upmove.

At close, the Sensex gained 187.64 points, or 0.23 per cent, to settle at 83,570.35. The Nifty rose 28.75 points, or 0.11 per cent, to end at 25,694.35.

Infosys emerged as top gainer on the Sensex, rising 5.67% to Rs 1689.75. Tech Mahindra followed with a 5.21% gain, while HCL Technologies, State Bank of India (SBI), Ultratech Cement, and HDFC Bank climbed 1.58%, 1.12%, 0.94% and 0.53%, respectively. 

Five stocks, namely Infosys, TCS, HDFC Bank, SBI and Tech Mahindra, contributed heavily to the Sensex’s rise.      
In the Sensex index, shares of ITC hit a fresh 52-week low of Rs 329.45.

Among sectoral indices, the BSE IT index surged 3.39% to close at 37,774.03, while the BSE Bankex advanced 1.16% to settle at 67,964.48.

Meanwhile, the earnings calendar remains busy on Saturday, January 17, when two of India’s largest private-sector lenders—HDFC Bank and ICICI Bank—are set to announce their quarterly results. They will be joined by Yes Bank and others.

Overall, of the 4,394 actively traded BSE stocks, 1,883 closed higher, 2,350 declined, and 161 remained unchanged. During the session, 84 stocks touched their 52-week highs, while 260 fell to 52-week lows. Meanwhile, 190 scrips hit their upper circuits, and 173 were locked in lower circuits.

Vinod Nair, Head of Research at Geojit Investments Limited, said equity markets saw positive momentum during the session, supported by better-than-expected Q3 results from IT and mid-sized banking stocks.

“However, profit booking towards the close capped the rally, resulting only in marginal gains for the market. The IT sector outperformed, supported by an upward revision in revenue growth projections from a leading industry bellwether, coupled with expectations of increased technology spending. Meanwhile, investor focus also shifted to banking counters, as early results reflected notable improvements in asset quality and margin profiles, further strengthening sentiment in the sector," Nair said.