Sensex surges 800 pts, Nifty tops 24,200 as TCS sparks IT rally; fear gauge cools 8%

Indian benchmark indices ended sharply higher on Friday, extending gains for a second straight session as upbeat June-quarter earnings from Tata Consultancy Services (TCS) lifted technology stocks and triggered broad-based buying across banking, financial and metal shares, even as investors continued to monitor elevated crude oil prices and geopolitical tensions in the Middle East.

The BSE Sensex climbed 827.57 points, or 1.08%, to close at 77,569.39, while the Nifty 50 gained 244.10 points, or 1.02%, to settle at 24,206.90.

The benchmarks had rallied sharply in early trade, with the Sensex touching an intraday high of 77,588.08 and the Nifty climbing to 24,226.05, before giving up a small part of their gains during the session as investors booked profits at higher levels. Despite the mild pullback, buying remained broad-based, helping the indices end near the day's highs.

TCS earnings lift IT sentiment

Information technology stocks led the rally after TCS jumped nearly 4% following its June-quarter results, which highlighted a $9.5-billion order book and $2.6-billion annualised AI revenue, reinforcing confidence in the sector ahead of the broader earnings season. The gains spilled over to peers including Infosys, Tech Mahindra and Wipro.

Reflecting the optimism, the Nifty IT index rose 1.96%.

PSU banks, realty among top sectoral gainers

The rally extended well beyond IT, hinting at a return of risk appetite across the market.

The Nifty Realty index emerged as the top sectoral performer, gaining 3.49%, followed by Nifty PSU Bank (3.03%), Nifty MidSmall IT & Telecom (2.50%), Financial Services Ex-Bank (1.66%), Chemicals (1.61%), Housing (1.44%), Financial Services 25/50 (1.41%), Bank (1.39%), Infrastructure & Logistics (1.38%), Private Bank (1.16%) and Metal (1.48%).

Among the few laggards, Nifty FMCG slipped 0.08%, while Pharma and Healthcare ended almost flat, indicating that investors preferred cyclical sectors over defensive plays.

On the stock-specific front, Jio Financial Services, HDFC Life, Adani Enterprises, Reliance Industries, Axis Bank, BEL, Tech Mahindra, Bajaj Finance, Tata Motors PV, JSW Steel, Infosys, Tata Steel, UltraTech Cement and Adani Ports were among the top gainers on the Nifty.

On the losing side, Dr. Reddy's Laboratories, Eternal, Bharti Airtel, Nestle India, Sun Pharma, ITC and Trent ended in the red.

Volatility eases, but oil remains in focus

Investor sentiment also received support from easing market volatility. The India VIX, widely tracked as the market's fear gauge, fell 8.3% to 12.25, extending its decline after Tuesday's spike and signalling improving confidence among traders.

However, caution persisted as Brent crude hovered around $76 a barrel, with markets continuing to assess the implications of geopolitical tensions in West Asia. While crude prices have retreated from recent highs, they remain elevated enough to keep inflation and current account concerns on investors' radar.