Stock Markets Rally in Early Trade Propelled by Buying in IT Firms

Benchmark indices Sensex and Nifty climbed in early trade on Friday, driven by buying in IT stocks after Tech Mahindra reported a 28.4% rise in consolidated net profit for the June quarter.

After a subdued ending in the previous trade, the 30-share BSE Sensex jumped 480.95 points to 77,656.56 in early deals. The 50-share NSE Nifty climbed 125.05 points to 24,201.

From the Sensex pack, Tech Mahindra climbed 3% after the IT company reported a 28.4% rise in consolidated net profit for the June quarter at ₹1,465 crore, and expressed confidence about the demand environment.

Infosys, Tata Consultancy Services, HCL Tech, Mahindra & Mahindra and Reliance Industries were also among the winners.

Sun Pharma, Bharti Airtel, Trent and UltraTech Cement were among the laggards.

The BSE IT index traded 1.25% higher at 28,189.45.

Brent crude, the global oil benchmark, quoted 0.85% higher at $84.95 per barrel.

In Asian markets, Japan's Nikkei 225 index, Shanghai's SSE Composite index and Hong Kong's Hang Seng index quoted lower.

US markets ended in negative territory on Thursday.

Foreign Institutional Investors (FIIs) offloaded equities worth ₹4,205.56 crore on Thursday, according to exchange data.

On Thursday, the Sensex edged up 1.44 points to settle at 77,186.87. The Nifty dipped 5.75 points, or 0.02%, to end at 24,072.75.