Indian Markets Extend Gains as IT Stocks Spark Rally; Lower Oil Prices Boost Investor Confidence

Sensex rises over 390 points while Nifty reclaims 24,100; broader markets outperform as easing geopolitical tensions and strong technology buying lift market sentiment.

Indian benchmark equity indices traded firmly higher on Thursday morning, supported by a sharp rebound in information technology (IT) stocks and improved global sentiment following diplomatic progress between the United States and Iran. The decline in crude oil prices after the two countries concluded talks in Doha also provided relief to investors, easing concerns over inflation and energy costs.

At around 10:00 AM, the BSE Sensex was trading 391.68 points higher at 77,314.32, while the NSE Nifty50 gained 119.10 points to reach 24,124.95. The positive momentum reflected renewed investor confidence as buying emerged across large-cap technology companies and select cyclical sectors.

IT Sector Leads the Market Recovery

The technology sector was the standout performer during the session, with the Nifty IT index surging nearly 4%. Heavyweight stocks including HCLTech, Infosys, TCS, Tech Mahindra, Coforge and Mphasis witnessed strong buying interest, helping benchmark indices recover from recent volatility.

Market participants attributed the rally to improving global risk appetite, expectations of stable demand for IT services, and easing macroeconomic concerns following the decline in crude oil prices. As IT companies generate a significant share of their revenues from overseas markets, positive global developments often have a direct impact on investor sentiment toward the sector.

Lower Crude Oil Prices Lift Market Sentiment

One of the key drivers behind Thursday's rally was the fall in international crude oil prices after diplomatic discussions between the United States and Iran reduced fears of supply disruptions in the Middle East.

For India, which imports a majority of its crude oil requirements, softer oil prices are generally viewed as a positive development. Lower energy costs can help moderate inflation, reduce the country's import bill, support the rupee, and improve corporate profitability across sectors such as aviation, paints, chemicals and logistics.

The easing geopolitical tensions also encouraged foreign investors to return to risk assets, providing additional support to emerging markets including India.

Broader Markets Continue to Outperform

The rally was not limited to frontline indices. The broader market also witnessed healthy participation, indicating improving market breadth.

The Nifty MidCap index advanced around 0.52%, while the Nifty SmallCap index gained approximately 0.69%. Continued buying in mid- and small-cap stocks suggests investors remain optimistic about domestic economic growth and corporate earnings prospects despite global uncertainties.

Analysts believe sustained participation from broader markets is a positive indicator, provided earnings growth remains supportive.

Sectoral Performance Remains Positive

Besides IT, several sectors traded in positive territory during the morning session.

Realty stocks extended their recent gains amid optimism over housing demand, while consumer durable companies benefited from expectations of improving discretionary spending. Metal and automobile stocks also attracted buying interest as commodity prices stabilized.

However, PSU banking stocks underperformed the broader market and witnessed mild profit booking after recent gains. Despite the weakness, overall sectoral breadth remained positive, with most major indices trading in the green.

Top Gainers and Stock-Specific Developments

Among the Nifty50 constituents, Infosys, HCLTech and Adani Enterprises emerged as the leading gainers. Tech Mahindra and TCS also contributed significantly to the benchmark's advance.

In corporate developments, GK Energy announced that it had secured an order worth ₹48.02 crore for rooftop solar installations across 1,150 locations under a 10 MW project. The order strengthens the company's position in India's rapidly expanding renewable energy sector.

Meanwhile, IT solutions provider CSM Technologies made a subdued stock market debut. The listing was largely in line with expectations prevailing in the grey market ahead of the issue.

IPO Market Remains Active

Activity in the primary market continued to remain robust.

Knack Packaging's ₹439.5 crore initial public offering entered its second day of subscription, attracting attention from investors seeking exposure to the manufacturing sector.

Several SME public issues—including Kratikal Tech, Vinit Mobile, Sampark India Logistics, Seemax Resources, Atharva Polyplast and Teja Engineering Industries—entered their final day of bidding, reflecting sustained investor participation in the SME segment despite volatile market conditions.

What Investors Should Watch Next

Going forward, market participants will closely monitor global developments, crude oil price movements, foreign institutional investor activity, and upcoming corporate earnings for fresh direction.

The sustainability of the IT-led rally will depend on global economic indicators, while domestic investors will also watch inflation trends, monsoon progress, and policy announcements that could influence market sentiment.

If geopolitical tensions remain contained and crude oil prices stay stable, analysts believe Indian equities could continue to witness selective buying, particularly in sectors linked to exports, domestic consumption and infrastructure.

Outlook

Thursday's session highlights the resilience of Indian equities despite global uncertainties. Strong buying in IT stocks, supportive global cues, easing crude oil prices, and broad-based participation across market segments have collectively strengthened investor confidence.

While short-term volatility cannot be ruled out, the underlying market tone remains constructive as investors position themselves ahead of the upcoming earnings season and monitor global macroeconomic developments.

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