Sensex and Nifty Recover as IT Stocks Spark Buying After Two Sessions of Losses
Mumbai, August 28, 2026: Indian equity markets regained momentum on Friday as strong buying in information-technology stocks helped the benchmark indices recover from two consecutive sessions of losses.
The BSE Sensex opened above the 77,000 mark, while the Nifty 50 moved back above 24,100. The recovery came after the previous session saw the Sensex fall more than 539 points and the Nifty decline nearly 117 points.
IT Sector Takes Centre Stage
Technology stocks emerged as the primary drivers of Friday’s early recovery.
Shares of major Indian IT companies attracted fresh buying interest after strong gains in global technology markets. The improved international sentiment followed a sharp rally in Nvidia shares, which boosted expectations surrounding continued AI-related technology spending.
The renewed interest in IT stocks provided much-needed support to India’s benchmark indices after the market had experienced significant selling pressure earlier in the week.
Global Cues Improve Investor Sentiment
The Indian market’s recovery was closely linked to developments in overseas markets.
Asian equities received support from gains in US technology shares, while investors also monitored developments surrounding the US Federal Reserve.
Markets worldwide are particularly focused on Federal Reserve Chair Kevin Warsh’s Jackson Hole address, which could provide clues about the direction of US monetary policy and interest rates.
Previous Session Was Difficult
Thursday’s trading session had been challenging for Indian investors.
The Sensex dropped 539.35 points, or 0.70%, to close at 76,933.59. The Nifty 50 fell 116.90 points, or 0.48%, finishing at 24,090.85.
The decline had extended the market’s losing streak to two sessions and pushed investors to watch Friday’s opening closely.
Key Levels Remain Important
Market analysts are continuing to monitor the Nifty’s technical levels.
According to pre-market analysis, the index faces resistance around the 24,200–24,300 zone, followed by a more significant hurdle near 24,400. The 24,000 level remains an important area of support.
A sustained move above resistance levels could strengthen the recovery, while renewed selling could bring the index back toward its recent support zones.
Oil and Interest Rates Remain Risks
Although technology stocks provided support, investors continue to face several external risks.
Oil prices remain important for India because the country relies heavily on imported energy. Geopolitical developments surrounding the Middle East and the Strait of Hormuz have contributed to uncertainty in global energy markets.
At the same time, expectations surrounding US interest rates could influence foreign investment flows into emerging markets such as India.
What Investors Will Watch Next
The sustainability of Friday’s rebound will be more important than the initial gains.
Investors are likely to monitor global technology stocks, Federal Reserve signals, crude-oil prices, foreign institutional flows and domestic corporate developments.
For now, the recovery led by IT shares has offered some relief to Indian investors following two difficult sessions. Whether the rebound develops into a broader market recovery will depend on how global and domestic factors evolve over the coming sessions.
