Sensex Hits 2-Week High on IT Rally

India’s BSE Sensex rose about 1.1% to 73,552 on Thursday, reaching its highest level since late September as it rebounded from the previous session’s losses, with strong HCLTech earnings lifting information technology stocks and investor sentiment. IT stocks outperformed the broader market, extending their recent rally on earnings-driven optimism. However, hotter-than-expected US inflation and the prospect of higher interest rates continued to weigh on risk appetite, while elevated oil prices and sustained foreign investor outflows remained key headwinds. Among stocks, IDBI Bank fell about 5.0% after Fairfax Financial Holdings received approval for its $5.56 billion acquisition of a controlling stake in the lender. Meanwhile, Jio Platforms set a price band of 1,065–1,119 rupees per share for its IPO, marking a significant development for India’s equity capital markets. Notable gainers included TCS (2.2%), Infosys (1.9%), HDFC Bank (0.8%), and Bharti Airtel (2.0%).

India’s BSE Sensex closed about 0.3% down at 72,781.9 on Wednesday, reversing the prior session's rally, partly due to profit-booking. Meanwhile, market sentiment was pressured by the renewed increase in oil prices, geopolitical uncertainties and sustained foreign outflows. Foreign portfolio investors extended their selling streak to 13 sessions on Tuesday, taking year-to-date outflows to a record $32.52 billion. Investors also exerted caution ahead of US inflation data, while also monitoring the ongoing earnings season. Among the major laggards, Bajaj Finance fell 2.6%, M&M lost 2.2%, Bajaj Finserv dropped 2%, Eternal declined 1.7% and ICICI Bank slipped 1.5%. Conversely, tech stocks maintained strong performance, led by Infosys, which rose 2.5%, followed by Tech Mahindra (+2.2%), TCS (+1.5%) and HCLTech (+0.6%). The sector attracted strong investor interest following HCLTech’s quarterly profit, which came in above market expectations. FMGC and oil & gas stocks also advanced.

The SENSEX Index fell 252 points or 0.34 percent on Wednesday to close at 72782 points. Leading the losses are Bajaj Finance (-2.58%), Bajaj Finserv (-2.47%) and Mahindra & Mahindra (-2.04%). Top gainers were Nestle India (2.70%), Infosys (2.44%) and Tech Mahindra (2.04%).