Sensex jumps 879 points, Nifty gains 1.3% as IT stocks lead market recovery

Indian stock markets closed sharply higher on Friday, with the benchmark indices Sensex and Nifty gaining over 1 per cent each, supported by strong buying across sectors, particularly information technology (IT), amid positive sentiment following TCS's results.

Indian stock markets closed sharply higher on Friday, with the benchmark indices Sensex and Nifty gaining over 1 per cent each, supported by strong buying across sectors, particularly information technology (IT), amid positive sentiment following TCS's results. The Nifty 50 index closed at 22,520.45, gaining 288.65 points or 1.30 per cent, while the BSE Sensex rose 879.09 points or 1.23 per cent to settle at 72,472.33.

All sectoral indices on the National Stock Exchange (NSE) ended in positive territory, with the Nifty IT index rallying more than 3 per cent. The gains reflected improved investor sentiment towards IT stocks following TCS's results. The Nifty FMCG index advanced 2.22 per cent, while the Nifty Auto index gained 1.36 per cent. The Nifty PSU Bank index rose 1.41 per cent, and the Nifty Private Bank index gained 1.35 per cent. The Nifty Media index also closed 1.23 per cent higher.

Vikram Kasat, Chief Business Officer – Advisory and Dealing at PL Capital, said Indian equities staged a strong recovery, led by IT stocks on optimism around TCS's results. He added that gains in FMCG and auto stocks indicated broader buying interest. “Softer crude prices and a firmer rupee provided additional support, although persistent FII selling and global uncertainties remain key risks,” Kasat said.

He added that sustained institutional buying, corporate earnings and stability in crude oil prices would be important in determining whether the recovery develops into a durable uptrend. In the commodities market, Brent crude was trading at USD 103.25 per barrel at the time of reporting, remaining elevated compared with its long-term average. Gold prices rose more than 1 per cent to Rs 1,51,175 per 10 grams for 24-karat gold, while silver gained 1.52 per cent to Rs 2,24,664 per kg.

Despite the market recovery, concerns over the rupee and foreign fund outflows continued to weigh on the broader outlook. Rajeev Sharan, Head of Research at Brickwork Ratings, said the rupee was trading near 96.7 against the US dollar, close to its record low of 97.12. He noted that the Reserve Bank of India's 25-basis-point repo rate hike to 5.5 per cent on October 7 had not strengthened the currency.

Sharan said foreign investors continued to exit equities, while elevated crude oil prices and high US bond yields added to the pressure on the rupee. “A rate hike defends inflation, not the currency,” he said, adding that the rupee could remain under pressure until crude oil prices ease or foreign investment flows improve.

Riyank Arora, Associate Vice President – HNI & Derivatives, Hedged.in said “The market's ability to build on recent gains speaks to underlying strength. The broader trend remains firmly in the bulls' favour as long as supports hold. Buying into dips in fundamentally strong names, with proper risk controls, remains our preferred approach”. In other Asian markets, Japan's Nikkei 225 index declined marginally by 0.02 per cent to 69,025, while Singapore's Straits Times index fell 0.20 per cent to 5,401. Hong Kong's Hang Seng index advanced 1.45 per cent to 24,135. (ANI)