Indian equity markets extended their rally on Friday, with the Sensex and Nifty rising more than 0.3% each.
The gains were driven by easing tensions in the Middle East and diminishing expectations for further Federal Reserve rate hikes, creating a favorable backdrop for risk assets.
SBI Securities analyst Sudeep Shah noted that the small-cap index is currently better placed than the broader Nifty, suggesting a rotation toward smaller companies as investor confidence strengthens.
The brokerage highlighted that a breakout above the 24,450 level for the Nifty could open the door to 24,900, while the Bank Nifty retains a positive bias.
Shah also identified nine specific stocks for potential upside in the coming week, including Aurobindo Pharma, reflecting a selective approach to the ongoing rally.
This sentiment aligns with broader emerging market optimism, as Bajaj Finserv Asset Management recently argued that Indian equities are positioned to outperform peers in the near term.