Indian stock markets ended the week on a high, surging nearly 2 per cent on Friday, as investor sentiment received a major boost following the United States' decision to defer tariffs for all countries except China. The move helped ease recession fears and allayed concerns of a potential global economic slowdown, market experts said.

The benchmark Nifty 50 opened with a strong gap-up, testing resistance near the 20-day exponential moving average (DEMA) around the 22,900 level before settling slightly lower at 22,828.55. Sectoral gains were led by metals, energy, and pharma, while broader indices also witnessed a sharp recovery, rising between 1.82% and 2.86%.

The BSE Sensex jumped 1,310.11 points, or 1.77%, to close at 75,157.26, after hitting an intraday high of 75,467.33 and a low of 74,762.84 during the session.

Ajit Mishra, Senior Vice President-Research at Religare Broking Ltd, said the recovery was encouraging, supported by a continued decline in market volatility. “A decisive close above 22,900 could open the path for a retest of the key moving average zone near 23,400,” he noted, adding that such sharp moves remain difficult to trade.

On the currency front, the Indian rupee rebounded, snapping a three-day losing streak against the US dollar. A weaker greenback, coupled with softening crude oil prices and strong domestic equities, helped the rupee close 65 paise higher at 86.04.

“The market breadth was extremely positive, with advancing stocks far outpacing decliners. The advance-decline ratio on the BSE stood at 3.68, its highest since March 5, 2025,” said Nandish Shah, Senior Derivative and Technical Research Analyst at HDFC Securities.

Small and midcap indices also surged around 2%, driven by optimism that global supply chains could stabilise and raw material cost pressures may ease.

However, experts cautioned that volatility is likely to persist. “Shifting global policies increase unpredictability. Export-heavy sectors must tread carefully, though India could benefit through lower input costs and improved capital expenditure outlook,” said Abhishek Jaiswal, Fund Manager at Finavenue.

Looking ahead, analysts expect support for the Nifty in the 22,600–22,700 range, with immediate resistance seen in the 23,000–23,100 zone.

The Bank Nifty also put up a strong show, closing at 51,002 after breaching a key resistance zone of 50,750–50,800. It formed a large bullish candle on both daily and weekly charts, indicating underlying strength.

"The breakout level of 50,750 will now act as immediate support. As long as the index holds above this, a rally toward 51,500–52,000 is likely. A 'buy on dips' strategy is recommended," said Hrishikesh Yedve, AVP-Technical and Derivatives Research at Asit C Mehta Investment Intermediates Ltd, a Pantomath Group Company.