IT stocks boost Indian index on Friday but broader market stays weak

Friday’s buying surge in information‑technology shares gave the Indian market a brief lift, yet the broader indices remained under pressure, marking the third week of overall declines. The Nifty settled 0.31% lower at 24,175 points, while the Sensex edged down 0.43% to close at 77,264, reflecting a net weekly fall of 0.36%.

The rally in the IT segment was the strongest driver, with the Nifty IT index gaining approximately 2.45% over the week. Positive signals from the global tech arena and Nvidia’s robust earnings helped restore confidence in the sector.

Conversely, the introduction of a closing auction session for futures and options created sharp intra‑day price movements during the monthly expiry, heightening short‑term volatility in large‑cap equities.

Banking and consumer discretionary stocks continued to lag, while a few pharma and metal names managed to attract limited buyer interest.

U.S. monetary policy commentary dominated sentiment. Remarks from the Federal Reserve chair at the Jackson Hole conference kept investors wary of a potentially less accommodative rate outlook, sustaining a cautious tone.

Analysts note that lingering inflation worries and volatile U.S. bond yields could limit foreign institutional inflows into emerging markets, a factor that may weigh on Indian equities.

On the commodity front, crude oil prices fell over 4%, pushing Brent to about $88 a barrel after indications of smoother traffic through the Hormuz Strait. The decline offered some relief to energy‑intensive industries, though geopolitical tensions in West Asia remain a downside risk.

Technical indicators point to a support zone for the Nifty between 23,800 and 24,000 points, with resistance poised near the 24,300‑24,400 range.

Upcoming data releases—including India’s GDP numbers and key U.S. labour market reports slated for early September—are likely to shape market direction in the weeks ahead.