Sensex Soars 828 Points, Nifty Reclaims 24,200 as TCS Ignites IT Rally

Indian benchmark equity indices ended sharply higher on Friday , with the BSE Sensex surging 827.99 points (1.08%) to close at 77,569.39 , while the NSE Nifty50 climbed 244.10 points (1.02%) to settle at 24,206.90 . The rally was led by strong gains in information technology stocks after Tata Consultancy Services (TCS) reported better-than-expected June-quarter earnings and signalled an improvement in client demand.

The IT sector emerged as the biggest driver of the day's gains, with TCS, Infosys, HCL Technologies and Tech Mahindra among the top performers. TCS shares rose after the country's largest IT services company posted a 4.61% increase in quarterly net profit to ₹13,349 crore , while management indicated that demand affected by the West Asia crisis is beginning to recover in the current quarter.

Broader market sentiment also remained positive, with mid-cap and small-cap indices advancing alongside benchmark indices. The rally was supported by upbeat global cues, as major Asian markets and Wall Street closed higher, boosting investor confidence.

Analysts said the earnings performance of TCS has strengthened expectations of a gradual recovery in the IT services sector after several quarters of subdued global technology spending. Investors also drew comfort from resilient corporate earnings prospects and signs of stabilising demand despite persistent geopolitical uncertainties.

However, market participants remained cautious over ongoing tensions in West Asia , elevated crude oil prices , and continued foreign institutional investor (FII) selling , with FIIs remaining net sellers in recent sessions. Brent crude traded above USD 76 per barrel , keeping inflation and import cost concerns in focus.

Despite Friday's strong rebound, both benchmark indices ended the week marginally lower , reflecting the impact of earlier geopolitical concerns and volatile global markets. Going forward, investors are expected to track the ongoing corporate earnings season, macroeconomic data, global interest rate expectations, crude oil prices and foreign fund flows for further market direction.