Sensex Jumps Over 700 Points, Nifty Tops 24,150 As TCS Lifts IT Stocks

Benchmark indices Sensex and Nifty traded sharply higher in early trade on Friday, led by a rally in information technology stocks after Tata Consultancy Services (TCS) reported June-quarter revenue above Street estimates and struck an optimistic tone on demand recovery. Firm Asian markets and easing volatility further supported investor sentiment.

At around 9:30 a.m., the Sensex was up 703.96 points, or 0.92%, at 77,445.78, while the Nifty 50 gained 196.25 points, or 0.82%, to 24,159.05.

All sectoral indices traded in the green except Nifty Pharma, with the Nifty IT index surging more than 2% to emerge as the top performer.

TCS Results Trigger IT Rally

IT stocks remained in focus after TCS reported June-quarter revenue that exceeded analysts' estimates, supported by stronger demand from banking clients and the benefit of a weaker rupee.

The company also offered an optimistic outlook, with CEO K Krithivasan expressing confidence that technology spending by manufacturing and life sciences clients could recover from the September quarter onwards.

TCS shares rose more than 3% in early trade as the results and management commentary reinforced expectations of a gradual recovery in demand, prompting brokerages to retain a broadly constructive view on the stock.

Global Markets And Lower Volatility Add Support

Positive global cues also lifted sentiment. South Korea's Kospi index gained more than 4%, while Hong Kong's Hang Seng advanced around 2%, tracking improved risk appetite across Asian markets.

Back home, the India VIX, the market's volatility gauge, declined around 6% to 12.63, indicating easing investor anxiety.

The rupee also opened 10 paise stronger at 95.29 against the US dollar compared with Thursday's close of 95.39.

Market Focus Shifts To Earnings

VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said markets were looking beyond geopolitical risks and focusing on domestic fundamentals and corporate earnings.

"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.

"From the domestic perspective, there are no major headwinds for the economy now. Stock markets will reflect this economic resilience and will respond positively to positive news from sectors and companies.

"Broadly, financials and automobiles will remain strong anticipating good Q1 numbers. Select pharmaceuticals and digital platform companies are exhibiting strength, indicating good Q1 numbers. In these segments there are buy-on-dips opportunities," he said.