Sensex jumps 700 points as IT stocks rally: Why markets ignored US-Iran tensions

Indian benchmark equity indices opened sharply higher on Friday, with technology stocks leading the rally as investors took comfort from firm global cues, softer crude oil prices and a broadly positive response to TCS’s June-quarter earnings.

In early trade, the BSE Sensex rose more than 700 points to 77,443, while the NSE Nifty climbed around 200 points to move past 24,150. The gains came even as geopolitical tensions in West Asia remained elevated, with markets appearing to look past concerns over the US-Iran situation for now.

The strongest support came from information technology shares. Infosys, Tata Consultancy Services, HCLTech and Tech Mahindra were among the top gainers on the Sensex and Nifty, with some of them rising as much as 4 per cent in morning trade. The rally in IT stocks gathered pace after TCS’s first-quarter earnings broadly met Street expectations, offering reassurance at a time when investors have been closely watching demand trends and commentary from the sector.

The upbeat mood was reinforced by strength across Asian markets, where technology and semiconductor shares rallied on the back of continued enthusiasm around artificial intelligence-linked demand. Japan’s Nikkei surged sharply, while Hong Kong’s Hang Seng also traded firmly higher. In South Korea, chip heavyweights SK Hynix and Samsung Electronics posted strong gains, adding to the positive sentiment around the global technology space.

Market participants also drew comfort from a decline in crude oil prices, with Brent trading below the $73-a-barrel mark. Lower oil prices are typically supportive for India, easing concerns around imported inflation and the current account, and helping sentiment in rate-sensitive and consumption-linked sectors.

Broader market sentiment remained constructive as well, with buying visible beyond frontline indices. Analysts said the resilience in equities reflected a combination of supportive global risk appetite and confidence in domestic economic fundamentals, even as investors remained alert to geopolitical developments.

VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said the sharp drop in Brent crude and the calm response from global equities were notable despite renewed tensions in West Asia. He said the domestic economy was not facing any major headwinds at present and that the market was likely to continue responding positively to favourable company- and sector-specific developments.

Vijayakumar added that financials and automobiles could remain strong on expectations of healthy June-quarter numbers, while select pharmaceutical and digital platform companies were also showing signs of strength.

Devarsh Vakil, Head of Prime Research at HDFC Securities, said gains in US equities overnight had also set a supportive backdrop for Asian and Indian markets. He noted that the Nasdaq had climbed to a record high after a strong rally in semiconductor stocks, with investor enthusiasm boosted further by robust demand for SK Hynix’s US ADR offering and continued focus on AI-led chip demand globally.

On the technical front, analysts said the 24,100-24,200 band on the Nifty would be an important near-term resistance zone. A sustained move above that level could improve momentum further and open room for a rise towards 24,400. On the downside, 23,900 is seen as the first support, followed by 23,800.

For now, however, the market’s message was clear: strong global technology cues, encouraging earnings signals and softer oil prices were enough to help equities brush aside geopolitical worries and begin the day on a firm note.

With IANS inputs