Indian equity benchmarks ended a volatile trading session on a modestly positive note Friday, with the Nifty 50 closing around 25,690 levels, up approximately 35–40 points for the day but virtually flat week-on-week. The session was characterized by early gains that fizzled out, with the index failing to sustain a push towards the 25,900 mark despite supportive performances in banking and IT sectors. Market participants described the day as range-bound, with the Nifty oscillating within the broader 25,550–26,000 zone that has defined trading for several weeks.

Technical analysts noted the index remains positioned near its crucial 20-week moving average, signaling a lack of strong directional conviction. Market participants described the day as range-bound, with the Nifty oscillating within the broader 25,550–26,000 zone that has defined trading for several weeks. Technical analysts noted the index remains positioned near its crucial 20-week moving average, signaling a lack of strong directional conviction.

The Nifty IT index emerged as the standout performer, surging around 3% led by robust post-earnings momentum in Infosys (up ~5–6%) and positive reactions to numbers from L&T Technology Services and Tech Mahindra (up over 5%). Market experts highlighted that the IT sector, widely considered the biggest underperformer of 2025, is showing early signs of revival, with some analysts targeting 40,300–42,200 levels for the Nifty IT index in the coming months on improved deal wins and margin performance.

Banking counters also provided support, with Federal Bank stealing the spotlight after delivering a strong set of numbers. The stock soared nearly 8–10% as the lender reported healthy net interest income growth (~9%), better-than-expected fee income, margin expansion, and stable-to-improving asset quality. Other PSU banks and select private names also saw buying interest.

However, gains were capped by profit-booking and selling pressure in FMCG, pharma, select auto, and consumption-linked names. ITC, several pharmaceutical stocks, and auto majors like Maruti Suzuki traded near session lows. Capital goods and power equipment names, including Hitachi, CG Power, and GE Vernova, continued to witness sharp selling amid concerns over potential Chinese equipment participation in government tenders and rising input costs, particularly copper.

The market is now squarely focused on an earnings-heavy weekend that will see results from several Nifty heavyweights, including Reliance Industries, HDFC Bank, ICICI Bank, Tech Mahindra, and Wipro. Analysts expect these results to potentially set the near-term direction for financials (which account for nearly 25% of Nifty earnings this season) and the broader market. Reliance Industries remains in focus with expectations of decent O2C performance driven by strong GRMs, festive-season tailwinds in retail, and healthy growth in Jio, though the oil & gas segment may remain under pressure.

Market experts remain divided on near-term outlook. While some see the current consolidation as healthy and expect stabilization in earnings growth (projected at 14–15% over the next couple of years), others caution about continued FPI outflows, rupee weakness (touching near 90.86 levels during the day), and potential budget-related rotation towards consumption away from capital goods/infra. The coming sessions are expected to remain event-driven, with key technical levels to watch being 25,850–25,950 on the upside and 25,400–25,450 on the downside. Traders and investors will closely monitor whether large-cap earnings can provide the necessary catalyst to break the prevailing range.