Indian equity markets closed higher on Friday, supported by strong buying in information technology stocks and positive investor sentiment following encouraging quarterly earnings.
The BSE Sensex rose 413.66 points, or 0.56 per cent, to close at 74,729.27, while the NSE Nifty 50 gained 148.80 points, or 0.65 per cent, to settle at 23,146.15.
Shares of Tech Mahindra, Wipro, Infosys and Tata Consultancy Services were among the prominent gainers, reflecting improved sentiment towards the IT sector. However, selling pressure in select heavyweight stocks, including Reliance Industries and Hindustan Unilever, limited the market's overall gains.
According to Ponmudi R, CEO of online trading and wealth tech company Enrich Money, information technology stocks drove the advance as investors responded to a fresh round of quarterly earnings.
"The Nifty IT index rose more than 3.5%, outperforming the broader market and extending the sector’s recent recovery. Tech Mahindra led the gains, surging more than 8% after its second-quarter FY27 results and stronger deal wins lifted sentiment, while advances across other major IT stocks reinforced the sector’s strength," he said.
The earnings-driven rally provided a counterweight to concerns over the broader macroeconomic backdrop. Crude oil remained elevated, with WTI trading above $95 a barrel, keeping pressure on India’s import bill and inflation outlook. Persistently high energy prices could also weigh on the rupee and dampen foreign investor appetite for domestic equities, Ponmudi added.
"Today's session also highlighted the market’s growing reliance on sector-specific earnings catalysts for direction. While stronger IT results helped sustain the recovery, the broader outlook remains sensitive to crude oil prices, currency movements and foreign portfolio flows," said another stock analyst associated with foreign brokerage.
A moderation in oil prices would offer additional relief to oil-sensitive sectors and the wider economy, while sustained strength in energy markets could limit the durability of the advance, he added.
However, investors remained cautious amid elevated crude oil prices and concerns over inflation in the US. These factors continued to influence expectations about global economic growth and the outlook for interest rates.