Benchmark stock market indices closed higher, driven by a strong performance in the IT sector despite concerns over US President Donald Trump’s ultimatum to Iran. The S&P BSE Sensex surged by 509.73 points to reach 74,616.58, while the NSE Nifty50 climbed by 155.40 points to close at 23,123.65.
Vinod Nair, Head of Research at Geojit Investments Limited, noted that the market showed signs of recovery despite initial weakness due to high crude prices and uncertainty surrounding Trump’s Iran deadline. The uptrend was mainly driven by gains in IT, FMCG, and metals, although overall market sentiment remained cautious.
Tata Consultancy Services Ltd led the gainers on the Sensex, with a 2.68% increase, followed by HCL Technologies Ltd at 2.67%, Infosys Ltd at 2.60%, Bharti Airtel Ltd at 2.13%, and Sun Pharmaceutical Industries Ltd recording a 1.67% rise. On the other hand, Indigo Ltd experienced the steepest decline, dropping by 0.87%, followed by Adani Ports and Special Economic Zone Ltd, Mahindra and Mahindra Ltd, Titan Company Ltd, and Trent Ltd, which closed lower.
Nair highlighted that market direction in the immediate future is likely to be influenced by geopolitical factors and strategic value investments, with a gradual shift towards analyzing earnings reports to gauge potential risks from increased oil prices and currency fluctuations. Investors are also anticipating the RBI policy decision, with expectations of unchanged interest rates.