Sensex gains nearly 696 points, Nifty tops 23,000 as IT stocks rally

• Sensex climbed nearly 696 points and Nifty gained 198 points in early trade, supported by IT stocks and positive global cues

• IT, public sector banking, cement and oil and gas indices advanced, while media and chemicals declined

• Elevated crude prices and US bond yields remain concerns, although earnings growth and domestic buying could cushion declines

Indian equities rose sharply in early trading on Wednesday, with the Sensex and Nifty advancing close to 1 per cent as buying in information technology stocks and firmer global markets lifted sentiment.

The Sensex climbed 695.79 points, or 0.94 per cent, to 74,548.69, compared with its previous close of 73,852.90. The Nifty rose 198 points, or 0.86 per cent, to 23,086.95, against Monday’s closing level of 22,888.95.

Both benchmarks had opened higher. The Sensex began the session at 74,337.93, while the Nifty opened at 23,016.

Sectoral gains extended beyond technology. Indices tracking public sector banks, cement, smaller IT and telecom companies, and oil and gas stocks also advanced, with gains across these sectors reaching up to 1.97 per cent. Media and chemicals indices, however, traded lower.

The domestic rally followed gains in Asian equities and US stock futures, as encouraging earnings from major companies linked to artificial intelligence revived interest in technology shares.

Despite the positive start, market experts cautioned that elevated Brent crude prices and US bond yields could limit the recovery, with investors likely to use rallies to reduce exposure in the near term.

They said improving corporate earnings, reasonable valuations among large companies and strong domestic liquidity could provide support when markets retreat. Banking and IT stocks could attract domestic institutional buying on corrections, supported by their second-quarter performance and valuations.

The earnings season has begun on an encouraging note, analysts said, suggesting that individual company results will increasingly determine share-price movements.

Institutional flows remained mixed in the previous trading session on 19 October. Foreign institutional investors sold equities worth approximately Rs 1,148 crore on a net basis, while domestic institutional investors made net purchases of around Rs 3,200 crore.

With IANS inputs