Sensex surges 965 points, Nifty tops 24,300 as IT, bank stocks rally; RIL jumps 2.6% ahead of Q1

Indian benchmark indices ended the week on a strong note on Friday, with banking and IT heavyweights driving a broad-based rally amid robust June quarter earnings and optimism ahead of key private bank results over the weekend.

The BSE Sensex jumped 964.58 points, or 1.25%, to close at 78,151.45, while the NSE Nifty50 gained 261.55 points, or 1.09%, to settle at 24,334.30, after touching an intraday high of 24,367.30.

The broader market, however, underperformed the benchmarks, with the Nifty Midcap 100 slipping 0.4% and the Nifty Smallcap 100 declining 0.2%.

India VIX, the market's fear gauge, edged up 2.1% to 13.15, amid persistent concerns about geopolitical tenstions.

IT, private banks lead sectoral rally

The rally was led by information technology and financial stocks. The Nifty IT index climbed 1.75%, extending gains after Tech Mahindra's better-than-expected June quarter earnings, while the Nifty Private Bank index advanced 2.12% ahead of earnings from HDFC Bank, ICICI Bank, Axis Bank and Kotak Mahindra Bank this weekend.

Other sectoral gainers included Nifty Realty (+1.38%), Nifty Auto (+1.24%), Nifty Financial Services (+1.14%), Nifty Oil & Gas (+0.99%), and Nifty FMCG (+0.70%).

On the flip side, Nifty Pharma declined 1.4%, Nifty Healthcare fell 1.28%, and Nifty Metal lost 0.47%.

Tech Mahindra, Reliance among top Sensex gainers

On the Sensex, Tech Mahindra emerged as the top gainer, rising 3.91% after reporting stronger-than-expected quarterly earnings. Kotak Mahindra Bank gained 3.37%, TCS advanced 3.02%, while Reliance Industries climbed 2.59% ahead of its June quarter results due later in the day.

Other major gainers included Hindustan Unilever (+2.17%), Mahindra & Mahindra (+1.88%), Axis Bank (+1.86%), ICICI Bank (+1.67%), Bajaj Finance (+1.67%), Infosys (+1.47%), and HDFC Bank (+1.40%).

Among the laggards, Sun Pharma fell 0.87%, followed by Trent (-0.68%), Bharti Airtel (-0.59%), UltraTech Cement (-0.55%), InterGlobe Aviation (IndiGo) (-0.40%), and NTPC (-0.20%).

Earnings to dictate market direction

According to Siddhartha Khemka, Head of Research (Wealth Management) at Motilal Oswal Financial Services, the strong start to the June quarter earnings season is likely to drive markets higher next week.

"Indian equities are expected to witness a gradual uptrend next week, on the back of a strong Q1FY27 earnings season so far, which is likely to remain the key driver of sectoral and stock-specific performance. With several index heavyweights reporting earnings over the weekend, investor focus will remain on management commentary and earnings reactions," he said.

Khemka noted that results from HDFC Bank, ICICI Bank, Axis Bank, Kotak Mahindra Bank and Punjab National Bank are expected to set the tone for the financial sector. He added that private bank stocks have also benefited from expectations that the RBI's special FCNR(B) deposit scheme could attract nearly $30 billion from non-resident Indians, strengthening India's foreign exchange reserves and supporting the rupee.

Ponmudi R, CEO of Enrich Money, said the rally reflected resilience in domestic sentiment despite weak global cues.

"Broad-based buying in heavyweight banking, financial and IT stocks helped benchmark indices outperform weak global markets. Expectations of healthy quarterly earnings from Reliance Industries and leading private sector banks further supported investor sentiment," he said.

He added that geopolitical tensions in the Middle East and elevated crude oil prices remain key risks for markets. The Indian rupee also remained under pressure near ₹96.3 against the US dollar, weighed down by higher oil prices and sustained demand for the greenback.

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