Sensex, Nifty Close 1% Higher as IT, Financial Stocks Rally
Mumbai — Indian equity benchmarks closed about 1% higher Friday, extending gains on strong buying in information technology, financial and realty stocks.
The Nifty settled at 24,206.90, up 244.10 points, or 1.02%. The Sensex rose 827.57 points, or 1.08%, to close at 77,569.39.
IT and realty stocks led the rally, with the Nifty IT index rising about 2% to emerge as one of the top-performing sectoral gauges. Financial stocks also saw broad-based buying, adding support to the market’s advance.
The Nifty Realty index jumped more than 3%, while the Nifty PSU Bank index also gained 3%. Nifty Chemicals, Nifty Metal, Nifty Cement and Nifty Oil & Gas rose as much as 1.66%.
Nifty FMCG was the only major sectoral index to close lower, slipping 0.08%.
Market experts said positive business updates from banks and an encouraging outlook for the IT sector helped lift investor sentiment at the start of the June quarter earnings season. Stable earnings estimates, expectations of a recovery in global technology spending and opportunities linked to artificial intelligence also supported the rally.
“If first-quarter earnings continue to beat expectations, concerns over future earnings growth could ease further, supporting the ongoing market uptrend. The rally has also broadened, with sectors such as real estate and metals witnessing strong participation,” the experts said.
They also said easing crude oil prices and a recovery in global technology stocks improved sentiment toward Indian equities and helped revive foreign institutional investor inflows.
International benchmark Brent crude fell more than 1% to $75.41 per barrel, while U.S. West Texas Intermediate crude declined 1.27% to $71.16 per barrel. (Source: IANS)
