Nifty closes 85 points up, Sensex gains 331 points as IT stocks track global tech rally

MUMBAI: The equity markets ended higher on Friday, supported by a strong rally in IT stocks as investors tracked gains in global technology shares. The Nifty 50 closed at 24,175.65, gaining 84.80 points, or 0.35 per cent, while the BSE Sensex rose 330.92 points, or 0.43 per cent, to close at 77,264.51.

The IT sector emerged as the biggest driver of the day’s gains, with the Nifty IT index rising more than 3 per cent. The sector gained momentum after technology stocks rallied in the US market following Nvidia’s strong second-quarter results and an upbeat revenue outlook, which renewed optimism over global spending on artificial intelligence.

Among the top gainers on the Nifty 50, TCS, Tech Mahindra, Infosys, Wipro and HCL Technologies led the advance, along with Bajaj Auto. The gains in IT stocks helped offset weakness in several other sectors.

“Investors are awaiting further clarity on geopolitical developments. Domestic equities ended largely flat. The Nifty IT index emerged as the top gainer, rising over 3%, tracking the overnight rally in US technology stocks and recovering from the recent selloff,” said Siddhartha Khemka, Head of Research, Wealth Management, Motilal Oswal Financial Services.

However, the broader market remained mixed, with selling pressure visible in FMCG and some banking and consumer-facing stocks. Nifty FMCG fell 0.68 per cent, while Nifty Consumer Durables declined 0.53 per cent. Nifty Realty lost 0.44 per cent, Nifty Auto fell 0.27 per cent, and Nifty Private Bank slipped 0.14 per cent.

Asian markets largely ended in positive territory, providing some support to domestic equities. Japan’s Nikkei 225 gained 0.27 per cent, Singapore’s Straits Times rose 0.28 per cent and Taiwan’s weighted index advanced 0.77 per cent. However, South Korea’s KOSPI declined 1.82 per cent, while Hong Kong’s Hang Seng slipped 0.01 per cent.

Investors are now watching comments from US Federal Reserve Chair Kevin Warsh at the Jackson Hole Symposium for clues on the outlook for inflation and global interest rates. His remarks could influence expectations around monetary policy in both global markets and India.

Meanwhile, Brent crude oil prices eased marginally by 0.36 per cent but remained elevated at around $88 per barrel. Gold was trading at Rs 1,59,400 per 10 grams for 24-karat gold, while silver surged to Rs 2,43,366 per kg. The rupee was trading around 95.401 against the US dollar, recovering from its intraday low of 95.55.

Riyank Arora, Associate Vice President-HNI & Derivatives at Hedged.in, said the market’s ability to build on recent gains pointed to underlying strength. He added that the broader trend remained bullish as long as key support levels held, while favouring buying on dips in fundamentally strong stocks with proper risk controls. (ANI)