Indian stock markets rallied in early trade driven by robust buying in IT stocks, following Tech Mahindra's impressive quarterly results. The BSE Sensex surged over 480 points, while the Nifty reclaimed the 24,200 mark, signaling strong investor confidence.

Key Takeaways

  • BSE Sensex jumped 480.95 points to reach 77,656.56.
  • Nifty climbed 125.05 points to trade at 24,201.
  • Tech Mahindra's net profit rose 28.4%, boosting the IT index by 1.25%.

The domestic equity market witnessed a significant rally during early trade on Friday, primarily propelled by heavy buying interest in Information Technology (IT) stocks. The surge was triggered after Tech Mahindra reported stellar financial results for the June quarter, which helped alleviate concerns about demand slowdown in the sector and revitalized investor sentiment across the board.

IT Sector Drives the Gains

After a flat closing in the previous session, the 30-share BSE Sensex spurted by 480.95 points or 0.62% to 77,656.56 in early deals. The broader 50-share NSE Nifty also followed suit, climbing 125.05 points or 0.52% to 24,201. Tech Mahindra was the top gainer in the Sensex pack, surging 3% after the IT major reported a 28.4% year-on-year rise in consolidated net profit to ₹1,465 crore. The company’s optimistic outlook on the demand environment further fueled the rally.

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Sector Performance and Global Cues

The positive momentum spread across other IT heavyweights, with Infosys, Tata Consultancy Services (TCS), and HCL Tech joining the rally. Other major contributors to the index gains included Mahindra & Mahindra and Reliance Industries. Consequently, the BSE IT index traded 1.25% higher at 28,189.45. On the flip side, Sun Pharma, Bharti Airtel, Trent, and UltraTech Cement lagged behind. Meanwhile, global markets remained subdued as US markets ended in the red on Thursday, and Asian indices showed mixed trends in early trade.