Benchmark equity indices opened sharply higher on Friday, with the Sensex climbing over 500 points and the Nifty crossing the 24,300 mark, as a rally in information technology (IT) stocks continued after softer-than-expected US jobs data eased concerns over an immediate interest rate hike by the US Federal Reserve.
The BSE rose 507 points to 78,009.37, while the NSE Nifty50 gained nearly 170 points to trade at 24,346.25 in early deals.
The optimism came after US labour market data pointed to slowing job growth, prompting investors to lower expectations of a near-term rate hike. Lower US interest rates generally improve risk appetite for emerging markets such as India and support technology spending by American companies, a key revenue source for Indian IT firms.
IT stocks led the rally, with the Nifty IT index gaining nearly 2%. HCLTech surged close to 4%, while Tech Mahindra gained over 2%. TCS rose more than 1.5% and Infosys added nearly 1.5%, extending Thursday’s sharp rebound.
The gains were not limited to IT stocks.
Among the Sensex pack, HCLTech, Bajaj Finserv, Tata Steel, Tech Mahindra, TCS, BEL, Infosys, UltraTech Cement, Bharti Airtel and ICICI Bank were among the biggest gainers. NTPC, M&M, Adani Ports, SBI and IndiGo traded lower.
The broader market also remained firm. Nifty100 gained 0.53%, Nifty200 rose 0.47%, Nifty500 added 0.46%, Nifty Midcap50 advanced 0.28%, Nifty Midcap100 gained 0.22% and Nifty Smallcap100 climbed 0.44%. India VIX, often referred to as the market’s fear gauge, fell 1.72%, indicating easing volatility.
Sectorally, Nifty IT emerged as the top performer, gaining 1.95%, followed by Nifty Metal, up 1.45%. Nifty Financial Services 25/50 rose 0.72%, Nifty Healthcare Index gained 0.70%, Nifty Pharma advanced 0.68%, Nifty FMCG climbed 0.49%, Nifty Private Bank added 0.48%, while Nifty Realty gained 0.87%. Nifty PSU Bank was the only sectoral index trading in the red, slipping 1.03%.
Market experts said easing crude oil prices and improving banking fundamentals continue to provide support to Indian equities.
“There are some positive trends that are providing near-term support and strength to the market. One, crude continues to fall with Brent below $71 now. This will further strengthen India’s macros and help in achieving higher growth while keeping inflation in check,” said Dr VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited.
He added that strong June auto sales, tapering foreign institutional investor (FII) selling and weakness in AI-heavy markets such as South Korea are also helping India outperform global peers.
“The strength in the banking segment and digital platform companies is likely to continue in anticipation of good Q1 results,” Vijayakumar said.
However, he cautioned that the sustainability of the market’s outperformance will depend largely on the progress of the monsoon, which remains below expectations.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)