Indian equity benchmarks staged a strong comeback on Friday, with the BSE Sensex soaring more than 650 points and the Nifty 50 reclaiming the 24,200 mark as investors cheered upbeat corporate earnings, sustained buying in banking stocks and renewed optimism in the information technology (IT) sector. However, losses in Wipro, Tech Mahindra and Tata Motors prevented an even sharper rally, highlighting the stock-specific nature of the ongoing earnings season.
The Sensex ended the session above the 79,400 level, while the Nifty comfortably traded above the crucial 24,200 mark. Market breadth remained positive, with advances outnumbering declines on the National Stock Exchange (NSE), reflecting improving investor confidence despite mixed global cues.
Leading the rally were heavyweight banking and financial stocks. HDFC Bank, ICICI Bank, Axis Bank, Kotak Mahindra Bank, State Bank of India, and Bajaj Finance attracted strong buying interest, providing significant support to the benchmark indices. Telecom major Bharti Airtel also traded firmly, while Infosys emerged as one of the biggest contributors to the day’s gains following its quarterly earnings announcement.
Infosys impressed investors after reporting better-than-expected financial results for the June quarter and raising its revenue growth guidance for FY27. The improved outlook strengthened confidence that large Indian IT companies continue to benefit from increasing demand for digital transformation, cloud services and artificial intelligence (AI)-led projects despite global macroeconomic uncertainties. The stock rallied sharply as investors welcomed the company’s positive commentary on client spending and deal momentum.
The rally in the Sensex and Nifty reflected investors’ preference for quality large-cap stocks during the ongoing earnings season. Analysts said strong results from market heavyweights are helping offset concerns over global uncertainty, with banking and select technology stocks providing stability to both benchmark indices.
In contrast, Wipro emerged as the biggest loser among frontline stocks after reporting a mixed set of June-quarter results. The company’s shares fell more than 3% after management issued a cautious outlook for the September quarter and several leading brokerages reduced their target prices.
Wipro reported a consolidated net profit of ₹3,352 crore, registering a modest 1% year-on-year increase, while revenue from operations rose 11% to ₹24,479 crore. Although the numbers were largely in line with expectations, investors were disappointed by the company’s weak revenue guidance. Wipro expects its IT services business to deliver between a 1.5% decline and 0.5% growth in constant currency during the September quarter, signalling continued softness in client spending.
The cautious outlook prompted brokerages such as Nomura, Nuvama and Motilal Oswal to lower their target prices on the stock. While most analysts retained their long-term positive stance due to Wipro’s investments in AI and digital capabilities, they warned that near-term revenue growth and margin expansion could remain under pressure amid delayed client decision-making and slower deal ramp-ups.
Apart from Wipro, Tech Mahindra also witnessed selling pressure as investors remained cautious ahead of its earnings, while Tata Motors declined following profit booking after recent gains. Select auto and metal stocks also traded lower, limiting the overall upside in the market.
Despite weakness in a few large-cap names, the Sensex and Nifty maintained their upward momentum as gains in financial and IT heavyweights outweighed losses in select auto and technology stocks. The broader market also remained resilient, with both the Nifty Midcap 100 and Nifty Smallcap 100 indices ending higher, indicating that buying interest extended beyond blue-chip companies. Mid-cap financials, capital goods, realty and consumer-focused stocks attracted fresh investments, reflecting improving risk appetite among domestic investors.
Sector-wise, Nifty Bank, Financial Services, IT and FMCG indices were among the top performers during the session. Banking stocks continued to benefit from expectations of healthy credit growth, stable asset quality and strong profitability, while select IT stocks gained on optimism surrounding AI-led technology spending.
Investor sentiment was also supported by sustained foreign institutional investor (FII) buying and expectations of robust corporate earnings during the June-quarter reporting season. Analysts believe improving domestic macroeconomic indicators, resilient consumption trends and continued government spending on infrastructure are providing a favourable backdrop for Indian equities.
Global cues remained mixed, with investors keeping a close watch on developments related to interest rates, crude oil prices and geopolitical tensions. However, India’s relatively strong economic fundamentals and consistent earnings growth have helped domestic markets outperform several global peers in recent months.
The experts are of the opinion that Friday’s trading session highlighted a clear distinction between companies delivering stronger earnings and those issuing cautious business outlooks. While Infosys was rewarded for its robust execution and improved guidance, Wipro faced selling pressure as investors reacted to its subdued growth forecast and brokerage target price cuts.
With the June-quarter earnings season gathering pace, analysts expect the Sensex and Nifty to remain driven by stock-specific movements rather than broad market trends. Companies delivering strong earnings and upbeat guidance are likely to outperform, while those reporting weaker growth outlooks could continue to face selling pressure. For now, the sharp gains in the Sensex and Nifty underline investors’ confidence in India’s long-term growth story, even as they remain watchful of global developments and upcoming corporate earnings.
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