Sensex surges over 700 points as Infosys sparks IT-led market rally
The Indian stock market opened sharply higher on Friday. It snapped a recent losing streak. Strong buying in IT stocks led the rally. Infosys set the tone after it delivered better-than-expected quarterly results and raised its full-year guidance.
At around 10:30 am, the S&P BSE Sensex jumped 709 points to 84,092. Meanwhile, the NSE Nifty50 climbed nearly 196 points to trade above 25,860. Both benchmark indices gained close to 1 percent in early trade. Investors returned to risk after several weak sessions.
The key trigger came from Infosys. On Wednesday, the country’s second-largest IT services firm surprised markets. It raised its revenue growth forecast for FY26. The company now expects revenue to rise between 3 and 3.5 percent. Earlier, it had guided for 2 to 3 percent growth. This revision boosted confidence across the IT space.
Moreover, Infosys said demand remained stable. Clients continued to spend on technology. The company also reported fresh momentum in its financial services business. This reassurance mattered. IT stocks had faced pressure in recent months due to global slowdown fears and cautious client spending.
In addition, Infosys shares reacted strongly overseas. Its US-listed ADRs surged over 10 percent in New York on January 14. Back home, the stock extended gains after already rising sharply post-results. On Friday morning, Infosys emerged as the top gainer on the Sensex.
Although Infosys reported mixed quarterly numbers, investors looked past short-term weakness. Net profit fell 2.2 percent to ₹6,654 crore. However, revenue visibility and deal momentum outweighed profit concerns. Market participants focused on the long-term outlook instead of near-term margins.
Segment-wise, Infosys showed healthy growth. Its financial services business, which contributes nearly one-third of revenue, grew 3.9 percent. Meanwhile, the communications segment expanded 9.9 percent. It became the fastest-growing vertical during the quarter. These numbers added comfort for investors.
Furthermore, the company announced new deal wins linked to artificial intelligence. Infosys secured projects with global players such as Adobe and Siemens. These deals signaled rising demand for AI-led transformation. As a result, sentiment around IT stocks improved sharply.
The rally quickly spread across the sector. On the Sensex, Tech Mahindra rose over 2 percent. HCL Technologies and TCS also traded higher. On the NSE, the Nifty IT index jumped more than 2 percent. All constituents traded in the green.
Infosys led the pack on the Nifty IT index. Mphasis, Wipro, and LTIMindtree followed with strong gains. Oracle Financial Services Software, Coforge, and Persistent Systems also advanced. This broad-based buying showed renewed investor interest in IT after weeks of selling.
Meanwhile, other sectors offered limited support. Auto stocks moved higher. Mahindra and Mahindra gained over 1 percent. Banking and financial stocks also edged up, though gains stayed modest.
Among sectoral indices, Nifty IT outperformed. Realty and PSU banks also posted solid gains. FMCG, auto, and financial services saw mild buying. Oil and gas stocks traded firm. However, media and healthcare stocks lagged and slipped into the red.
Overall, market sentiment improved on Dalal Street. Infosys eased concerns over demand in the IT sector. It gave investors a clear positive trigger at the end of the week. Going ahead, traders will track more earnings announcements and global cues. For now, strong IT results have pushed the market back into positive territory.
