Mumbai, Nov 22 (IANS) Bulls roared on the Indian benchmark indices on Friday as Sensex surged more than 1,961 points and Nifty 557 points, while the stock market witnessed a significant broad-based rally from the oversold territory, predominantly led by large-cap stocks.

The rally in financial stocks and strong US labour market data were among the factors that drove the Sensex and Nifty up more than 2 per cent. A rally in blue-chip bank stocks also helped the benchmark indices jump in Friday's trade.

Sensex closed at 79,117.11 after gaining 1,961.32 points, or 2.54 per cent, and Nifty closed at 23,907.25 with a gain of 557.35 points, or 2.39 per cent.

This is the largest bull run after June 5, when the BSE Sensex rose 3.20 per cent, or 2,303.19 points, to 74,382.24, while the NSE Nifty was at 22,360.25, up 3.36 per cent or 735.85 points.

Market watchers said that in the broader market, corrections are creating opportunities to accumulate quality stocks with strong fundamentals and resilience to macroeconomic pressures.

"Despite global challenges, India's long-term growth story remains compelling. Investors should focus on sectors aligned with structural themes such as urbanisation, infrastructure, and consumption growth. Strategic portfolio adjustments, disciplined investing, and a long-term perspective are critical to navigating the current environment," said Krishna Appala of Capitalmind Research.

The IT sector, despite its recent underperformance, is poised for recovery as global headwinds ease in the medium term.

Vinod Nair, Head of Research, Geojit Financial Services, said that positive momentum was also observed in global markets, due to a modest decline in Japan's October inflation and 39 trillion yen stimulus package. "Moderation in global and domestic political drama provided a relief to the domestic market," Nair added.

Strong buying by domestic institutional investors (DIIs) and firm trends in US markets added to the recovery in domestic equities. From the 30-share Sensex pack, State Bank of India, ICICI Bank, IndusInd Bank, Tata Motors, Power Grid, Bajaj Finance, Bajaj Finserv and Tech Mahindra were the biggest gainers.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 5,320.68 crore on Thursday, while DIIs bought shares worth Rs 4,200.16 crore.