The Indian stock market opened the year on a positive note as Sensex and Nifty edged higher on Friday, fueled by strong buying in IT shares and supportive global cues. Investors found confidence after Infosys reported better-than-expected quarterly numbers, setting the tone for a broad market rally.
Market Performance Overview
By mid-afternoon trading:
- Sensex climbed 391.10 points (0.47%) to 83,773.81
- Nifty 50 advanced 99.20 points (0.39%) to 25,764.80
- Market breadth was positive: 1,966 shares rose, 1,409 shares declined, and 195 shares remained unchanged
The rally was led primarily by the IT sector, while select pharma and energy stocks saw mild profit booking.
Key Drivers Behind the Market Rally
1. IT Stocks Lead the Charge
IT shares were the top gainers in the market.
- Infosys surged over 5%, its best performance in four months, after posting strong Q3 FY26 results
- Wipro and Tech Mahindra also climbed, contributing to the sector-wide momentum
- Nifty IT Index rose nearly 3%, closing at 38,851.85
The spike in IT stocks reflected investor confidence in stable discretionary spending and improved business momentum in the financial services segment.
2. Positive Global Cues
Global markets continued to provide support to domestic equities:
- South Korea’s Kospi traded higher in Asia
- US markets closed in green overnight, maintaining optimism
These global trends bolstered domestic buying interest, encouraging investors to take positions in key sectors.
3. Crude Oil Prices Decline
Brent crude, the global benchmark, eased 0.24% to USD 63.61 per barrel.
- Lower oil prices help reduce import costs and ease inflationary pressures
- The decline followed easing concerns over potential supply disruptions and geopolitical tensions
4. Hopes of an India-US Trade Deal
Investor sentiment received a boost amid expectations of progress in the India-US trade talks:
- Discussions aim to reduce reciprocal tariffs on Indian exports
- Negotiating teams from both countries remain in continuous talks, following a virtual meeting between Commerce Minister Piyush Goyal and the US Trade Representative
5. Reduced Market Volatility
The India VIX, which measures market volatility, slipped 1.24% to 11.18, signaling reduced fear and improved risk appetite among investors.
6. Banking Sector Support
Ahead of Q3 results from major banks, HDFC Bank, ICICI Bank, IDBI Bank, and Yes Bank, investors picked up banking shares:
- This pre-earnings positioning added strength to the broader market
Company Highlights
- Infosys: Led IT gains, rising 5% after strong Q3 FY26 performance
- Wipro & Tech Mahindra: Followed suit with significant gains
- Cipla & ETERNAL: Lagged, declining up to 2%
Summary
Friday’s trading session reflected cautious optimism in the Indian equity markets. A combination of strong IT buying, positive global cues, easing crude prices, trade optimism, lower volatility, and banking sector support contributed to a Sensex gain of 391 points and Nifty closing above 25,750.
Investors monitored these key sectors closely, while broader market participation was healthy, indicating confidence in domestic equities.
Source: Moneycontrol
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