The Sensex and Nifty 50 indices surged more than 2% during intraday trade on Thursday, with the Sensex rising over 1,500 points to reach 74,330 and the Nifty climbing approximately 433 points to hit 23,056. The rally was driven by strong gains in IT stocks and renewed investor interest ahead of the Reliance Jio IPO, pushing the Nifty back above the psychologically important 23,000 mark, according to livemint.com.
Vinod Nair, Head of Research at Geojit Investments Limited, attributed the market strength to better-than-expected technology earnings, currency stability, and easing bond yields. He noted that strong IT-led earnings and expectations of solid overall Q2 corporate performance boosted confidence in corporate profit growth, lifting large-cap stocks. Tata Consultancy Services, Infosys, HCL Technologies, and Tech Mahindra extended their gains for a third consecutive session, fueling the rally, livemint.com reported.
The surge in Indian equities comes amid a global correction in artificial intelligence-linked stocks, but domestic factors such as improving corporate earnings and stable macroeconomic conditions supported the rally. The focus on financial stocks also increased as bond yields eased. This rally underscores the resilience of the Indian market despite a challenging global environment and highlights the critical role of the IT sector and major IPOs like Reliance Jio in driving investor sentiment, according to livemint.com.
The market's next major event is the Reliance Jio IPO, which has generated significant investor interest and is expected to influence trading volumes and sentiment in the coming sessions. The Sensex and Nifty's ability to sustain levels above 74,000 and 23,000 respectively will be closely watched by market participants, livemint.com noted.