IT Stocks Power Market Rally: Nifty Closes Above 24,175, Sensex Jumps 579 Points

Indian benchmark indices ended Thursday's session on a strong note, with the Nifty 50 closing above the 24,175 mark and the Sensex surging nearly 580 points. Softer crude oil prices, dovish comments from the US Federal Reserve Chair and optimism surrounding the India-Japan Summit lifted investor sentiment, while IT stocks led the rally.

Lower crude, Fed remarks and India-Japan optimism drive gains

The Nifty 50 settled at 24,175.70, rising 169.85 points or 0.71 per cent, while the BSE Sensex gained 579.48 points, or 0.75 per cent, to close at 77,502.12.

Market sentiment improved after crude oil prices extended their decline and investors grew more optimistic about the global interest rate outlook following comments from the US Federal Reserve Chair. Expectations surrounding the ongoing India-Japan Summit also added to the positive momentum.

Vinod Nair, Head of Research at Geojit Investments Limited, said, "Indian markets ended higher as easing tensions around the Strait of Hormuz pushed crude prices lower, while dovish remarks from the Fed Chair reinforced expectations of moderating inflation and a supportive global rate environment. Sentiment was further aided by optimism surrounding the India-Japan Summit, with investors anticipating deals on trade, defence, semiconductors, AI cooperation, a proposed rupee-yen settlement framework and deepening bilateral capital flows."

He added, "Sectorally, the standout performer was the IT sector, which, supported by short covering, also rallied following the strengthening view that Indian IT firms will remain a key enabler of enterprise AI adoption. Going forward, market direction will be driven by the US non-farm payrolls data, the developments from the India-Japan summit, and the incoming Q1FY27 earnings results."

IT leads rally as most sectoral indices finish higher

Most sectoral indices on the NSE ended in positive territory, with the exception of the Nifty PSU Bank index, which slipped 0.43 per cent.

The Nifty IT index emerged as the biggest gainer, soaring 4.64 per cent. Realty stocks advanced 1.45 per cent, followed by Auto at 1.21 per cent, Metal at 0.88 per cent, FMCG at 0.56 per cent and Pharma at 0.50 per cent.

Among the top gainers in the Nifty 50 were Infosys, Tech Mahindra, HCL Technologies and Tata Consultancy Services. On the losing side, Max Healthcare, Larsen & Toubro, Axis Bank, Nestle India, Reliance Industries and Kotak Mahindra Bank ended lower.

Brent crude eases; Asian markets deliver mixed performance

Brent crude continued to trade lower, hovering at USD 70.54 per barrel at the time of filing, providing additional support to equity markets by easing concerns over inflationary pressures.

Asian markets, however, presented a mixed picture. Japan's Nikkei 225 declined 1.95 per cent to 69,130, while South Korea's KOSPI dropped more than 8 per cent to 7,648. Singapore's Straits Times index rose 1.07 per cent to 5,217, Hong Kong's Hang Seng gained 0.35 per cent to 22,961, and Taiwan's weighted index slipped 0.59 per cent to 46,744.

(With inputs from ANI)