Sensex, Nifty open in green lifted by IT stocks as TCS earnings cheer markets
The BSE Sensex opened at 77,395.63 and climbed 676.12 points, or 0.88%, to 77,417.94 in early trade. The NSE Nifty50 rose 196.30 points, or 0.82%, to 24,159.10. The benchmarks had also ended higher in the previous session after recovering from Wednesday's sharp sell-off.
Benchmark indices opened higher on Friday, extending gains as better-than-expected June quarter results from Tata Consultancy Services (TCS) lifted information technology stocks, while stable crude oil prices eased concerns over the impact of the ongoing US-Iran tensions.
The BSE Sensex opened at 77,395.63 and climbed 676.12 points, or 0.88%, to 77,417.94 in early trade. The NSE Nifty50 rose 196.30 points, or 0.82%, to 24,159.10. The benchmarks had also ended higher in the previous session after recovering from Wednesday's sharp sell-off.
The rally was driven by IT stocks after India's largest software exporter reported quarterly earnings that beat market expectations. The Nifty IT index jumped over 3%, making it the top-performing sector in early trade.
Tech Mahindra surged 3.64%, TCS gained 3.48%, HCLTech climbed 3.43% and Infosys advanced 3.42%. L&T Technology Services, Coforge and other IT companies also traded firmly in the green.
TCS reported a 5% year-on-year rise in consolidated net profit to Rs 13,349 crore for the June quarter, while revenue increased nearly 14% to Rs 72,275 crore. The company also announced an interim dividend of Rs 12 per share.
The company reported a strong order book of $9.5 billion during the quarter, driven by several AI-led deals, while its annualised AI revenue run rate rose to $2.6 billion. T
CS also added 9,279 employees during the quarter, its strongest quarterly hiring in more than a year, signalling confidence in demand despite global uncertainties. CEO K Krithivasan said he remains optimistic about a recovery in technology spending and added that AI is creating new business opportunities rather than replacing existing ones.
Apart from IT, buying was seen across most sectors. Nifty Financial Services gained 0.94%, Nifty Private Bank rose 0.90%, Nifty PSU Bank added 0.87%, while Auto, FMCG, Media and Realty indices also traded higher. Broader markets remained strong, with the Nifty Midcap 100 rising 0.80% and the Nifty Smallcap 100 gaining 0.84%. India VIX, the market's fear gauge, fell more than 5%, indicating easing volatility.
Among the Sensex constituents, Tech Mahindra, TCS, HCLTech, Infosys, ICICI Bank, Axis Bank, Reliance Industries, Tata Steel and Mahindra & Mahindra were among the top gainers.
Investors also drew comfort from stable crude oil prices despite continuing geopolitical tensions in West Asia. Brent crude was trading around $76.52 a barrel, while WTI crude was near $72.29, suggesting that fears of a major supply disruption have eased for now.
Dr VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said markets have remained resilient despite geopolitical uncertainties.
"Tensions in West Asia continue without any clarity of a resolution to the geopolitical crisis. However, interestingly, markets are largely ignoring these negative developments. Brent crude declined 3% in a day and global stock markets have completely ignored the renewed tensions. This confident message from the market is significant. But investors have to be cautious, warranting monitoring of the developments."
He added that there are no major domestic headwinds for the economy at present and markets are likely to respond positively to strong corporate earnings. According to Vijayakumar, financials, automobiles, select pharmaceutical companies and digital platform businesses continue to offer opportunities for investors on market dips.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)
Benchmark indices opened higher on Friday, extending gains as better-than-expected June quarter results from Tata Consultancy Services (TCS) lifted information technology stocks, while stable crude oil prices eased concerns over the impact of the ongoing US-Iran tensions.
The BSE Sensex opened at 77,395.63 and climbed 676.12 points, or 0.88%, to 77,417.94 in early trade. The NSE Nifty50 rose 196.30 points, or 0.82%, to 24,159.10. The benchmarks had also ended higher in the previous session after recovering from Wednesday's sharp sell-off.
The rally was driven by IT stocks after India's largest software exporter reported quarterly earnings that beat market expectations. The Nifty IT index jumped over 3%, making it the top-performing sector in early trade.
Tech Mahindra surged 3.64%, TCS gained 3.48%, HCLTech climbed 3.43% and Infosys advanced 3.42%. L&T Technology Services, Coforge and other IT companies also traded firmly in the green.
TCS reported a 5% year-on-year rise in consolidated net profit to Rs 13,349 crore for the June quarter, while revenue increased nearly 14% to Rs 72,275 crore. The company also announced an interim dividend of Rs 12 per share.
The company reported a strong order book of $9.5 billion during the quarter, driven by several AI-led deals, while its annualised AI revenue run rate rose to $2.6 billion. T
CS also added 9,279 employees during the quarter, its strongest quarterly hiring in more than a year, signalling confidence in demand despite global uncertainties. CEO K Krithivasan said he remains optimistic about a recovery in technology spending and added that AI is creating new business opportunities rather than replacing existing ones.
Apart from IT, buying was seen across most sectors. Nifty Financial Services gained 0.94%, Nifty Private Bank rose 0.90%, Nifty PSU Bank added 0.87%, while Auto, FMCG, Media and Realty indices also traded higher. Broader markets remained strong, with the Nifty Midcap 100 rising 0.80% and the Nifty Smallcap 100 gaining 0.84%. India VIX, the market's fear gauge, fell more than 5%, indicating easing volatility.
Among the Sensex constituents, Tech Mahindra, TCS, HCLTech, Infosys, ICICI Bank, Axis Bank, Reliance Industries, Tata Steel and Mahindra & Mahindra were among the top gainers.
Investors also drew comfort from stable crude oil prices despite continuing geopolitical tensions in West Asia. Brent crude was trading around $76.52 a barrel, while WTI crude was near $72.29, suggesting that fears of a major supply disruption have eased for now.
Dr VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said markets have remained resilient despite geopolitical uncertainties.
"Tensions in West Asia continue without any clarity of a resolution to the geopolitical crisis. However, interestingly, markets are largely ignoring these negative developments. Brent crude declined 3% in a day and global stock markets have completely ignored the renewed tensions. This confident message from the market is significant. But investors have to be cautious, warranting monitoring of the developments."
He added that there are no major domestic headwinds for the economy at present and markets are likely to respond positively to strong corporate earnings. According to Vijayakumar, financials, automobiles, select pharmaceutical companies and digital platform businesses continue to offer opportunities for investors on market dips.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)
