Tata Consultancy Services (TCS) reported a 15% profit growth for the September quarter, triggering a sharp recovery in Indian equities on Friday. The Nifty 50 index closed 1.30% higher at 22,520.45, while the BSE Sensex gained 1.23% to 72,472.33, ending an eight-week losing streak. Bank Nifty outperformed with a 1.36% rise to 55,256.65, according to thehindubusinessline.com.
TCS shares surged around 5% following the company’s strong quarterly results, which included robust AI-related revenue and healthy deal wins. This performance sparked a broad-based buying spree across sectors, lifting the Nifty IT index by more than 3%. Market participants also reacted positively to easing geopolitical tensions and a decline in crude oil prices. Clarifications on the US suspension of major tech firms from the PERM green-card program further eased investor concerns, as existing H-1B employment remained unaffected.
The rebound in Indian equities marks the first positive weekly close after eight consecutive weeks of decline, reflecting renewed investor confidence. Ajit Mishra, SVP of Research at Religare Broking, described the rally as a relief rally amid cautious optimism. The strong quarterly earnings from TCS, a bellwether for the IT sector, underscore the resilience of India’s technology industry despite global uncertainties and regulatory challenges.
The Nifty ended the week 0.44% higher, and the Sensex added 562 points, signaling a potential shift in market momentum. Investors will closely watch upcoming corporate earnings and geopolitical developments to assess if the recovery sustains beyond this relief rally, thehindubusinessline.com reported.