Indian Stock Market Indexes Post Significant Gains, Driven by Buying Activity in IT Sector

Indian Equity Markets: Positive Cues Drive Sensex and Nifty Higher

Market Overview The Sensex and Nifty benchmark indices traded higher on Thursday, supported by buying in IT shares and fresh foreign fund inflows amid positive global cues. The Sensex rose 244.61 points or 0.3% to 82,520.68, while the Nifty advanced to 25,558.95, up 76.45 points or 0.3%.

Sectoral Performance The major Nifty sectoral indices traded in the green, barring the FMCG sector. The broader Nifty smallcap100 and Nifty midcap100 gained about 0.4% and 0.72%, respectively. Tech Mahindra, HCL Technologies, and Infosys were among the top gainers in the Nifty pack, rising up to 2%.

Key Drivers

1. Buying in IT Shares: IT stocks gained for the second straight session, after robust Nvidia earnings. Shares of Infosys and Tata Consultancy Services rose 2-3%, extending recovery after a sharp sector-wide sell-off earlier this week.
2. FII Inflows: Foreign Institutional Investors (FIIs) bought equities worth Rs 2,991.64 crore on Wednesday, while Domestic Institutional Investors (DIIs) purchased shares worth Rs 5,118.57 crore.
3. Positive Global Cues: In Asian markets, Kospi and Nikkei 225 were trading in positive territory. US markets ended higher on Wednesday, driven by a tech-led rally.
4. Rupee Appreciation: The rupee appreciated 6 paise to 90.85 against the US dollar in early trade on Thursday, supported by a weaker greenback and foreign fund inflows.
5. Volatility Index: The India VIX, the market's volatility gauge, declined 1.5% to 13.28, indicating lower near-term uncertainty among investors.

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Technical Analysis According to Aakash Shah, Technical Research Analyst at Choice Equity Broking Private Limited, the Nifty continues to consolidate within the 25,250–25,650 range, suggesting a phase of range-bound movement. The index is currently holding above the immediate support zone of 25,250, which remains crucial for sustaining the ongoing recovery.