Indian markets rebound sharply, ending eight-week slide amid mixed macro cues

Friday’s trading saw the Sensex surge 854 points to 72,448 and the Nifty 50 gain 284 points to 22,516, erasing the eight-week decline that had seen the indices fall 8-9 percent. The rebound was driven by robust earnings from Tata Consultancy Services and heightened demand for IT stocks, despite recent H-1B visa restrictions. Market observers noted that geopolitical uncertainty ahead of India’s November 3 mid-term election and comments from U.S. President Donald Trump on Iran kept the outlook volatile.

They also highlighted that U.S. 10-year Treasury yields hovering above 5 percent could sustain foreign investor outflows. Nonetheless, valuation metrics such as a trailing P/E of 19.26x for the Nifty suggest the market is relatively cheap, prompting some analysts to recommend selective large-cap exposure.