Sensex and Nifty News: IT Stocks Lead Market Rally as Benchmarks Snap Two-Day Losing Streak

Market Performance: Sensex and Nifty Bounce Back

The Indian stock market saw a notable recovery on Friday, January 16, with frontline indices snapping a two-day losing streak. Investor sentiment was bolstered by strong performances in IT and banking sectors, helping the benchmarks inch higher.

• Sensex closed 83,570.35, up 188 points or 0.23%.
• Nifty 50 settled at 25,694.35, gaining 29 points or 0.11%.

The market’s modest gains came despite some profit booking towards the session’s close, reflecting cautious optimism among investors.

Main Drivers: IT and Banking Shine

The rally was largely led by IT heavyweights, which captured investor attention after a string of positive corporate developments. Banking stocks also contributed, with early earnings results supporting sentiment.

• Infosys emerged as the top contributor, with shares climbing 5.58% following better-than-expected quarterly results.
• Other IT leaders like Tech Mahindra (+5.26%), Wipro (+2.54%), HCL Tech (+2.41%), and TCS (+2.34%) also gained momentum.

Banking counters supported the market rise:

• HDFC Bank and SBI were key contributors to the Sensex and Nifty rally.

Overall, the market responded positively to IT revenue growth updates and healthier banking fundamentals, highlighting sectoral rotation that investors often watch closely.

Sector Performance: Winners and Losers

The market showed a clear sectoral divergence, with IT and banks leading, while other sectors faced pressure.

Top Performing Sectors:

• Nifty IT Index: +3.34%
• Nifty Bank: +0.86%
• PSU Bank Index: +1.16%

Lagging Sectors:

• Nifty Pharma: -1.28%
• Healthcare: -1.15%
• Consumer Durables: -1.11%

The contrast reflects the market’s current focus on technology and financials, while defensive sectors faced selling pressure.

Top Gainers and Losers: Highlights

Nifty 50 Top Gainers:

• Infosys: +5.58%
• Tech Mahindra: +5.26%
• Wipro: +2.54%
• HCL Tech: +2.41%
• TCS: +2.34%

Nifty 50 Top Losers:

• Cipla: -2.54%
• Jio Financial Services: -3.15%
• Eternal: -3.76%

The market’s selective rally indicates investors favoring high-quality IT and banking stocks, while other sectors face muted demand.

Market Breadth and Volumes

Market activity remained active, with certain counters seeing huge trading volumes:

• Most active stocks by volume:
  • Vodafone Idea: 55.4 crore shares
  • Tata Silver ETF: 30 crore shares
  • IFCI: 25 crore shares
• Advance-Decline Ratio:
  • Advancers: 1,850+ stocks
  • Decliners: 2,350+ stocks

The broader market picture shows cautious participation, where high trading volumes coincided with selective sectoral gains.

52-Week Highs and Lows

Investors also tracked the 52-week highs and lows, giving insight into market trends:

• Stocks hitting 52-week highs: 84, including SBI, Axis Bank, Tata Steel.
• Stocks hitting 52-week lows: 260, including ITC, Tube Investments of India, Dixon Technologies.

This mixed trend underscores a market in consolidation, where some pockets are reaching new highs, while others remain under pressure.

Summary: Market in a Balanced Recovery

Friday’s session reflected a careful rebound for Indian equities, led by IT and banking sectors. While frontline indices recovered from recent losses, market breadth shows divergence across sectors, highlighting where investor focus currently lies.

Key Takeaways:

• Sensex and Nifty 50 end higher, snapping two-day losses.
• IT stocks dominate gains; Infosys, TCS, Tech Mahindra lead.
• Banking stocks provide secondary support.
• Pharma and healthcare sectors continue to lag.
• Market breadth is mixed; trading volumes remain high in select counters.

The session shows a market cautiously optimistic, balancing strong sectoral rallies against pockets of weakness, reflecting the nuanced investor sentiment in India today.

Source: Livemint