Indian equity markets ended higher on Friday, August 28, recovering from the sharp volatility seen in the previous session. The BSE Sensex gained 330.92 points, or 0.43%, to close at 77,264.51, while the Nifty 50 rose 84.80 points, or 0.35%, to settle at 24,175.65. The rebound helped both benchmarks snap a two-day losing streak. 

IT stocks lead the rally

The biggest support came from the IT sector, which tracked strength in global technology shares. The Nifty IT index gained more than 3%, with TCS, Tech Mahindra, Infosys, Wipro and HCL Technologies among the prominent gainers. Tech Mahindra rose around 4%, while TCS also advanced strongly. 

The global technology rally was supported by optimism following strong results and an upbeat outlook from US chipmaker Nvidia, which renewed expectations around artificial-intelligence-related technology spending. 

Metals and pharma also support markets

Apart from IT, metal and pharma stocks also remained firm, helping the benchmarks hold on to gains despite intermittent profit booking. Market breadth was relatively positive, with around 2,300 stocks advancing compared with roughly 1,840 declining on the day. 

FMCG and consumer stocks remain under pressure

The rally was not broad-based across all sectors. FMCG, consumer durables, energy and realty stocks faced selling pressure. Among individual stocks, Asian Paints, ITC, SBI Life, ICICI Bank and UltraTech Cement were among the notable laggards. 

Investors remain cautious after expiry-day volatility

Friday's recovery came a day after heavy volatility during the monthly derivatives expiry. Thursday's session saw sharp late-session swings following the introduction of the Closing Auction Session (CAS), keeping investors cautious about market stability. 

Lower crude prices and positive global market cues also supported sentiment. The rupee ended around ₹95.38 per US dollar, gaining about 0.2% from the previous close. 

Market outlook

The Friday rebound provided some relief to investors, but the broader trend remains cautious. The Nifty's ability to sustain levels above 24,150 will be closely watched in the next trading sessions, while global technology trends, crude oil prices, US Federal Reserve signals and foreign fund flows are likely to remain key market drivers.