The Indian stock market witnessed a strong rally on Friday, with the BSE Sensex surging 653 points to close at 79,476 and the NSE Nifty breaching the 24,100 mark, driven by positive global cues and a sharp uptick in IT stocks led by Tata Consultancy Services (TCS).
Market Rally Led by IT Stocks
TCS shares jumped over 4% after the company reported robust quarterly results for the April-June period. The IT major's net profit rose 8.7% quarter-on-quarter to Rs 12,040 crore, beating market expectations. Revenue grew 5.4% to Rs 62,613 crore, driven by strong deal wins and demand in North America and Europe.
The rally in TCS lifted the entire IT sector, with Infosys, Wipro, and HCL Technologies gaining between 2-3%. The Nifty IT index surged 3.5%, making it the top sectoral gainer.
Global Cues Supportive
Positive global cues also supported the market. US markets closed at record highs on Thursday after strong jobs data and easing inflation concerns. Asian markets traded higher on Friday, with Japan's Nikkei and Hong Kong's Hang Seng up over 1% each.
According to analysts, the market is gaining momentum on expectations of a rate cut by the US Federal Reserve later this year. Lower interest rates in the US are positive for emerging markets like India as they attract foreign capital inflows.
Broader Market Performance
The broader market also saw strong buying interest. The BSE Midcap index rose 0.8%, while the Smallcap index gained 1.2%. All sectoral indices ended in the green, with auto, banking, and metal stocks also contributing to the rally.
Market breadth was positive, with 2,200 stocks advancing on the BSE against 1,350 declines. The rally was broad-based, indicating strong investor confidence.
Expert Views
"The market is in a bullish phase, supported by strong domestic fundamentals and global liquidity. TCS results have set a positive tone for the earnings season," said V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
"We expect the Nifty to test 24,500 levels in the coming weeks if the earnings season continues to be strong," he added.
Outlook
Investors will now focus on the upcoming quarterly results of other IT majors and banking stocks. The market will also track developments in the global economy and the progress of the monsoon in India.
The Reserve Bank of India's monetary policy decision next week will be a key event for the market. Most analysts expect the RBI to hold rates steady, but any dovish commentary could further boost sentiment.
