Indian Equities Rally 1% as TCS, Indian Bank Report Strong Q2 Results

Benchmark equity indices rallied about 1% on Friday, extending gains for a second straight session, led by strong buying in PSU banks and IT stocks after TCS and Indian Bank reported better-than-expected quarterly results. Easing geopolitical tensions and a continued decline in crude oil prices further boosted investor sentiment. Talks between the US and Iran on a permanent peace agreement are continuing, Bloomberg reported on Friday, citing a US official. Brent crude prices have fallen from around $79 a barrel to $75 over the past two days, easing concerns over inflation and India’s import bill. The Sensex rose 827.57 points, or 1.08%, to close at 77,569.39, while the Nifty gained 244.10 points, or 1.02%, to end above the 24,200 mark at 24,206.90. After falling 9% on Thursday, the India VIX declined another 8.33% to 12.25, indicating easing market volatility. Investor wealth increased by Rs 10.51 lakh crore over the past two sessions, including Rs 5.80 lakh crore on Friday alone, taking the BSE’s total market capitalisation to Rs 481.75 lakh crore. The rebound fully offset the nearly Rs 9 lakh crore erosion in investor wealth recorded on Wednesday. Despite Friday’s rally, the Sensex and Nifty ended the week with marginal losses of 0.25% and 0.26%, respectively, snapping their four-week winning streak. Foreign portfolio investors bought shares worth Rs 2,603.72 crore, while domestic institutional investors purchased equities worth Rs 2,019.68 crore, according to provisional BSE data. “The positive undertone was primarily driven by a steady start to the Q1 earnings season, with TCS’s in-line results providing relief to market participants. Continued softness in crude oil prices and stability in the rupee further supported investor confidence,” said Ajit Mishra, SVP-research, Religare Broking. However, he added that market participants will remain watchful of developments on the geopolitical front and the performance of global markets, which could influence market direction in the coming sessions. Market breadth remained firmly positive, with 2,883 stocks advancing against 1,377 declining on the BSE. Except for FMCG, which ended marginally lower, all sectoral indices closed in the green. Realty led the gains with a 3.5% rise while Nifty PSU Bank index and Nifty private bank were up was up 3.03% and 1.16%, respectively. Nifty IT index closed up 1.96%. Reliance Industries emerged as the biggest contributor to the Sensex’s rally, accounting for 166 points, or about 20%, of the index’s 828-point gain. ICICI Bank , HDFC Bank , Axis Bank and L&T together contributed another 323 points, or 39%. Tech Mahindra, BEL, Axis Bank and Tata Steel were among the other top Sensex gainers. “Indian equities experienced a volatile week, with early optimism giving way to a sharp bout of risk aversion mid-week as escalating tensions in West Asia pushed crude oil prices higher,” said Vinod Nair, head of research, Geojit Investments. He said investor sentiment improved markedly after encouraging Q1 business updates from the banking and IT sectors, providing a constructive backdrop for the earnings season. “This helped markets regain their footing, driving a broad-based recovery towards the end of the week,” he said. According to Nair, markets will closely track Q1 FY27 earnings and India’s inflation data in the coming week, while global investors will monitor US core inflation figures and commentary from Federal Reserve officials.