Sensex gains 315 points, Nifty ends above 23,100: 3 reasons behind market recovery

The equity benchmark indices recovered on Friday , with the Nifty climbing back above 23,100 and the Sensex gaining 315 points, as buying in select financial and auto stocks helped the benchmarks close largely higher. The Sensex ended at 73,896, up 315 points, while the Nifty closed at 23,141, gaining 77 points.
The Nifty Bank rose 142 points to 55,580, while the Nifty Midcap index slipped 84 points to 60,906. Market breadth was mildly in favour of advances, with the advance-decline ratio at 5:4. Why did the stock market rise today?1. Buying in select financial stocksSelect financial stocks saw buying, with Axis Bank and Bajaj Finance among the top Nifty gainers.

HDFC Bank ended 1% higher and remained in focus on expectations of a chief executive officer announcement. Federal Bank declined, while Jana Small Finance Bank gained on expectations of a deal announcement.2. Auto stocks recoverMost auto stocks recovered to end in the green, with Mahindra & Mahindra emerging as the top gainer, rising 2%.3.
Midcaps and select stocks remain under pressureThe broader market underperformed the benchmarks, with the Nifty Midcap index ending 84 points lower at 60,906. Hospital stocks, including Max Health and Fortis, remained under pressure, declining 3-5%. MCX declined 3% on profit booking after the Securities and Exchange Board of India approved foreign portfolio investors for non-agricultural commodities.

Among midcaps, Kaynes, Supreme, Indian Renewable Energy Development Agency , Blue Star and Manappuram were among the top gainers. From the Sensex basket, Axis Bank Ltd, Mahindra & Mahindra Ltd, Asian Paints Ltd, Bajaj Finance Ltd, HCL Technologies Ltd and Titan Company Ltd were the major gainers.
Market This Week The equity benchmark indices declined for the seventh consecutive week, marking the first such streak since the COVID period. The Nifty fell 1% this week, taking its decline over the last seven weeks to nearly 6%. The Sensex declined 0.6% during the week, while the Nifty Bank and Nifty Midcap indices slipped 2% each.

Among sectoral indices, IT was the biggest loser, declining 2%. FMCG was the top gainer, rising 1%. Tata Motors Passenger Vehicles, Bajaj Finance, Bajaj Finserv, HDFC Life and Adani Enterprises were among the top Nifty losers. On the other hand, Coal India, ITC, Eternal, Titan and Dr Reddy's Laboratories were among the top Nifty gainers.
Among midcaps, PB Fintech, Paytm, Oracle Financial Services Software , L&T Finance, Ather Energy and Container Corporation of India were among the top losers.