Why market gained today? Sensex soars 900 pts intraday, Nifty at 24,228

On the sectoral front, Nifty Realty ended the day as the top gainer, followed by Nifty PSU Banks. Both indices closed over 3 per cent higher.

Stock market benchmark indices Sensex and Nifty 50 surged on Friday, driven by a rally in IT firms after TCS reported its June quarter results. A positive trend in global markets also drove the equities higher. The 30-share BSE Sensex jumped 901 points, or 1.17 per cent, to make an intraday high of 77,642.33. The Nifty index made a high of 24,228.45, up 268 points, or 1.11 per cent.

VK Vijayakumar, chief investment strategist, Geojit Investments, said that tensions in West Asia continue without any clarity of a resolution to the geopolitical crisis. However, interestingly, markets are largely ignoring these negative developments.

“This confident message from the market is significant,” he said.

He added that there are no major headwinds for the economy now from the domestic perspective. “Stock markets will reflect this economic resilience and will respond positively to positive news from sectors and companies.”

The Sensex finally closed with a gain of 827.57 points, or 1.08 per cent at 77,569.39. Likewise, the Nifty index advanced 244.01 points, or 1.02 per cent to settle at 24,206.90.

On the sectoral front, Nifty Realty ended the day as the top gainer followed by Nifty PSU Banks. Both the indices closed over 3 per cent higher. The Nifty IT gaining nerly 2 per cent each, while the Nifty Bank climbed 1.4 per cent. In the broader markets, both the Nifty Midcap 100 and Nifty Smallcap 100 outperformed, gaining 1.40 per cent and 1.55 per cent, respectively.

The market breadth turned strong as the advance decline ratio was heavily skewed in the favour of bulls at day’s close. A total of 418 out of the Nifty 500 stocks ended in green, reflecting broad based participation.

Stock market rally today: Key reasons

Buying in IT, heavyweights: Shares of IT companies were in demand with the Nifty IT index soaring over 3 per cent after TCS announced its Q1FY27 results. TCS shares gained 4 per cent in intraday deal, while Infosys surged around 2 per cent. At last check, all the 10 constituents of the IT index were trading firmly in the green.

“TCS’s quarterly results were broadly in line with expectations, with revenue outpacing estimates even as profitability fell slightly short. TCS management remains confident in growth recovery, driven by a stronger pipeline, strong deal TCV, and net-new AI-led deal wins,” Devarsh Vakil, head of prime research at HDFC Securities, said.

Other than IT, index heavyweights Reliance Industries and ICICI Bank gained more than 1 per cent each. HDFC Bank shares were up 0.90 per cent.

Oil price: Oil eased despite intensifying tensions in West Asia. Brent futures fell 6 cents, ‌or 0.08 per cent, to $76.24 a barrel by 0125 GMT. US West Texas Intermediate (WTI) crude lost 4 cents, or 0.06 per cent, to $72.04.

Rupee gains: The rupee rose 15 paise to 95.32 against the US dollar on Friday as the greenback weakened. The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 100.64, down 0.25 per cent.

Global markets: Asian stocks rose sharply on Friday, led by chip and AI firms. Japan’s Nikkei rose 1.8 per cent while South Korea’s KOSPI, the epicentre of the AI rally, gained 2.4 per cent. Chip bellwethers SK Hynix and Samsung were both up 3 per cent.

Overnight, the tech-heavy Nasdaq Composite ended 1.3 per cent higher after Micron Technology’s plans to invest more than $250 billion in the US through 2035 buoyed chip stocks. The S&P 500 finished 0.81 per cent higher, while Dow Jones advanced 0.27 per cent.

Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not sharechart. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.

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