Mumbai [Maharashtra]: The benchmark indices Sensex and Nifty rebounded on Friday after two sessions of sharp declines, led by a rally in TCS and other IT shares.
At 2:10 pm, the Sensex was up 1003.78 points, or 1.4 percent at 72,597.02, while the broader Nifty advanced to 22,557.65, up 325.85 points or 1.47 percent.
IT shares surged, led by gains in TCS after the company reported its September quarter results. TCS shares rose 5 percent after the company reported an acceleration in AI-related revenue and growth in its international business during the September quarter.
The rally was supported by buying in information technology stocks following TCS’s September-quarter results, with investors tracking the company’s AI-related business growth and international performance. Market participants will also monitor earnings announcements from other major IT companies for further cues on the sector’s outlook.
The market recovery extended beyond Tata Consultancy Services, with other major IT stocks, including Infosys, HCLTech and Tech Mahindra, also gaining during Friday’s session. Investor sentiment was supported by TCS’s September-quarter earnings, as the company reported a 15 per cent year-on-year rise in net profit to ₹13,884 crore and annualised AI revenue of $3.1 billion.
However, concerns over foreign investor outflows, crude oil prices and global economic conditions continued to remain in focus. Foreign institutional investors sold equities worth ₹12,943.58 crore on Thursday, adding to the pressure during the previous session. Market participants were also tracking movements in international markets and US bond yields for further cues.
[DD News]