Mumbai, Aug 28: Indian equity markets staged a strong recovery on Friday, with the Sensex gaining more than 400 points and the Nifty moving above the 24,150 mark as investors returned to technology stocks.

The rebound came after two consecutive sessions of losses and was supported by positive global cues and renewed optimism around the technology sector. The sharp rise in US technology stocks, led by Nvidia’s strong outlook, helped improve sentiment towards Indian IT companies.

The Nifty IT index emerged as one of the strongest performers, gaining around 3 per cent. Major IT stocks, including TCS, Infosys and HCLTech, witnessed strong buying interest as investors responded positively to the global technology rally.

The recovery provided some relief after Thursday’s highly volatile session, when the domestic market witnessed sharp movements towards the close. Investors were therefore closely watching whether Friday’s gains would develop into a broader recovery.

Global markets also provided support. US equities ended higher in the previous session, with the Nasdaq gaining more than 1.5 per cent after Nvidia’s upbeat revenue outlook strengthened confidence in continued artificial intelligence-related spending. Nvidia shares jumped sharply, while technology and software stocks across Wall Street also advanced.

The positive sentiment extended to several Asian markets, although trading remained mixed ahead of Federal Reserve Chair Kevin Warsh’s speech at the Jackson Hole Symposium. Investors are looking for clearer signals on the US interest-rate outlook, which could influence global capital flows and emerging-market equities.

For Indian markets, the IT sector has become a key source of support. Strong demand expectations for artificial intelligence, cloud computing and digital services are encouraging investors to reassess technology stocks, particularly after the recent weakness in the broader market.

However, the recovery remains sensitive to global developments. Movements in crude oil prices, US bond yields and expectations surrounding monetary policy could continue to influence investor sentiment.

Market participants are also keeping an eye on the unusual volatility witnessed during Thursday’s closing session following the introduction of the new Closing Auction Session. The sharp swings near the market close have added another layer of uncertainty for traders.

Despite these concerns, Friday’s rebound indicates that investors are willing to return to beaten-down sectors when global cues improve. The sustainability of the recovery will now depend on whether buying spreads beyond IT stocks and whether the Nifty can maintain levels above 24,150.

For the near term, investors are expected to remain focused on IT stocks, global technology trends, US monetary-policy signals and domestic market volatility as they assess the next direction of the Sensex and Nifty.