Sensex ends 1,718 points higher, Nifty crosses 25,000; ICICI Bank up 5%

Stock market ended Friday's session with strong gains, extending its winning streak to seven sessions as Dalal Street remained in festive cheer ahead of Diwali. The rally came even as global markets faced a sharp sell-off, led by technology stocks, with investors reassessing the outlook for artificial intelligence investments.The Sensex jumped 1,718.01 points, or 2.17%, to close at 81,028.02. The Nifty climbed 493.75 points, or 2.01%, to settle at 25,030.35, reclaiming the 25,000 mark. Both benchmarks had also ended Thursday's session sharply higher.The Sensex opened at 79,413.66 and extended gains through the session, touching an intraday high of 81,028.02, which was also its closing level. The Nifty opened at 24,538.20 and moved between an intraday low of 24,388.05 and a high of 25,030.35.PRIVATE BANKS LEAD THE RALLYBuying was visible across most Sensex constituents, with financial stocks, particularly private banks, leading the gains. Mahindra & Mahindra was the top Sensex gainer, rising 6.15%. ICICI Bank advanced 4.65%, while HDFC Bank climbed 3.56%. Titan gained 3.36%, Axis Bank rose 3.19% and Kotak Mahindra Bank added 2.68%.Other notable gainers included Tata Steel, up 2.20%, NTPC and Adani Ports, both up 2.09%, and Sun Pharma and Larsen & Toubro, which gained 1.90% each. UltraTech Cement advanced 1.68%, Bharti Airtel rose 1.66%, while Eternal and ITC gained 1.61% and 1.56%, respectively. Bajaj Finance rose 1.38%, Bajaj Finserv gained 1.27% and Infosys advanced 1.25%. State Bank of India, Maruti Suzuki and Hindustan Unilever also ended higher, gaining 1.10%, 1.07% and 0.65%, respectively.Asian Paints, Trent and Tech Mahindra edged up 0.56%, 0.51% and 0.49%, respectively. HCL Technologies gained 0.46%, IndiGo rose 0.40%, Reliance Industries added 0.36% and TCS advanced 0.20%. Bharat Electronics gained 0.16%.Power Grid Corporation was the only Sensex stock to end in the red, slipping 0.57%.BROADER MARKETS SHOW A MIXED PICTUREThe broader market performance was more mixed than the benchmark indices. The Nifty 100 rose 1.62%, while the Nifty 200 and Nifty 500 gained 1.30% and 1%, respectively.Among mid- and small-cap stocks, the Nifty Midcap 50 advanced 0.33%. However, the Nifty Midcap 100 edged down 0.02%, while the Nifty Smallcap 100 declined 0.82%.India VIX, which measures expected market volatility, rose 13.35% to 17.66, indicating that concerns around market swings remained despite the sharp gains in benchmark indices.MOST SECTORS END IN THE GREENSectorally, private banks led the gains, with the Nifty Private Bank index rising 3.22%. The Nifty Financial Services 25/50 index advanced 2.54%, while the Nifty Consumer Durables index gained 1.70%.The Nifty Pharma index rose 1.21%, while the Nifty Healthcare index gained 0.67%. The Nifty FMCG index advanced 0.67%, the Nifty Oil & Gas index rose 0.64% and the Nifty Metal index gained 0.66%.The Nifty Auto and Nifty PSU Bank indices added 0.76% and 0.60%, respectively. Realty gained 0.09%, while the Nifty IT index rose 0.43%.The Nifty Media index was a notable laggard, falling 1.52%. The Nifty MidSmall IT & Telecom index also declined 0.91%.Other indices that ended higher included Nifty MidSmall Healthcare, up 0.35%, Nifty Financial Services ex-Bank, up 1.08%, Nifty MidSmall Financial Services, up 0.64%, and Nifty Chemicals, up 0.26%.WHY DALAL STREET IS DEFYING THE GLOBAL ROUTThe strong performance of Indian equities came against the backdrop of a sharp global market sell-off. Technology stocks faced heavy pressure as investors reassessed the scale of investments in artificial intelligence and data centres, with concerns around regulation and the returns on these investments adding to uncertainty.Vinod Nair, Head of Research at Geojit Investments Limited, said Indian equities had defied the global rout as investors viewed the domestic market as a relative safe harbour amid turmoil abroad.He pointed to the sharp technology-led sell-off on Wall Street and said the prospect of tougher regulation under the Democrats had weighed on investor sentiment. In contrast, large private banks emerged as the main beneficiaries of the rotation in funds, supported by their deep liquidity and attractive valuations.Nair also highlighted the sharp weekly decline in crude oil prices, easing US Treasury yields and a firmer rupee as factors that improved India's relative appeal."Large private banks emerged as the prime beneficiaries, their deep liquidity and attractive valuations making them a natural home for this rotational money," he said.However, global cues remain important. Nair said investors would closely track the US jobs report due later on Friday, particularly as Federal Reserve officials continue to signal the possibility of further rate hikes.CRUDE OIL PRICES EASECrude oil prices were lower on Friday, offering some relief to oil-importing economies such as India.US West Texas Intermediate (WTI) crude futures were trading at $89.74 per barrel, down $0.78 or 0.86%. Brent crude futures slipped $0.83, or 0.84%, to $97.46 per barrel.Nair said the combination of foreign fund flows, lower crude prices and currency stability had improved the market's outlook as investors prepared to enter the new Samvat."Still, as Samvat 2082 draws to a close, the market enters the new Samvat with foreign flows, crude and the currency finally pulling in the same direction," he said.The sharp gains on Friday have added to the festive mood on Dalal Street. However, the rise in India VIX and weakness in parts of the broader market suggest that investors have not completely set aside concerns about global volatility.Disclaimer: The views, opinions, recommendations and suggestions expressed by experts and brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.- Ends