The BSE Sensex jumped as much as 752 points during the day to hit an intraday high of 84,134.97, while the NSE Nifty 50 surged 0.8% to touch 25,873.50. Gains were visible from the opening bell. The Sensex climbed 277 points, or 0.33%, to 83,660 at the open, while the Nifty advanced 66 points, or 0.26%, to start the session at 25,731.
Here are the key factors driving the market’s rise today
1. IT stocks rally
Indian shares rose on support from a sharp rally in IT stocks after Infosys surprised investors by raising its full-year revenue growth guidance. The country’s second-largest software services exporter jumped as much as 5%, marking its biggest intraday percentage gain in four months and lifting the Nifty IT index by about 3%.Infosys unexpectedly raised its fiscal 2026 revenue growth forecast to 3%-3.5% from 2%-3%, signalling a healthier demand environment. Market participants pointed to steady discretionary technology spending, renewed momentum in the company’s core financial services business, and stronger artificial-intelligence partnerships that could help the firm gain market share.
The optimism spread across the sector. All 10 constituents of the IT index traded higher, with Wipro climbing about 3% ahead of its quarterly results later in the day, reinforcing the sector’s outsized role in driving Friday’s benchmark gains.
2. Earnings momentum lifts heavyweight stocks
The early days of the earnings season have reinforced bullish sentiment, with results so far delivering no major negative surprises and selectively rewarding investors with sharp stock-specific gains.
ICICI Prudential Asset Management Company surged 6.3% after reporting a 45% jump in third-quarter profit, reflecting the operating leverage in asset managers amid buoyant capital markets. Investment platform Groww climbed 7.2% following robust December-quarter results and continued gains in market share across categories, adding to the broader sense of earnings optimism.
The momentum was also visible in banking stocks. The Nifty Bank index jumped more than 400 points, inching closer to a fresh record high, as investors positioned themselves ahead of key results. Banks are firmly in focus, with index heavyweights ICICI Bank and HDFC Bank scheduled to report earnings on Saturday.
Adding to the anticipation, Reliance Industries, the Nifty 50 heavyweight, is set to announce its quarterly results after market hours on Friday, keeping heavyweight-driven momentum firmly in play.
3. Some trade optimism
Investor sentiment also drew support from reports suggesting the European Union is set to formalise its largest-ever trade deal with India on January 27, a development seen as structurally positive for exports and cross-border investment flows.
Markets, meanwhile, largely shrugged off reports around delays in a U.S. Supreme Court ruling on the legality of tariffs imposed during the Trump administration. The absence of an immediate verdict helped temper fears of near-term global volatility.
“There are no triggers to take the market significantly up or down, and a directionless drift is the likely trend,” said Dr VK Vijayakumar, Chief Investment Strategist at Geojit Investments. He added that a U.S. Supreme Court ruling, which could have led to sharp volatility in global markets, didn’t materialise, and since there is no timeline for a ruling, such an event is unlikely to influence the market in the near term.
4. Technicals hint at a fragile rebound
Technical indicators suggested that while Friday’s rebound has gathered momentum, the undertone of the market remains cautious, with key support and resistance levels firmly in focus for traders.
“The support provided by 25600 has allowed a reversal pattern to mature, which gives us hope that Wednesday’s late recovery could have more legs. We will, however, look for consistent trades above 25715, to pursue such upsides, which could ideally aim for 26020. That said, while we had taken a limited downside view on Wednesday, the potential for 25060 appears higher today, should we slip below 25600,” said Anand James, Chief Market Strategist at Geojit Investments.
Other market watchers echoed the view that the broader texture remains range-bound despite sharp intraday moves. Shrikant Chouhan, Head of Equity Research at Kotak Securities, noted that after a muted open, the market saw narrow-range trading, with support emerging near 25,600 on the Nifty and 83,200 on the Sensex, while profit-taking was observed near 25,800 and 83,800 levels. “We are of the view that the intraday market texture is non-directional; perhaps traders are waiting for either side to breakout,” he said.
Also read: Reliance Industries Q3 results today: What to expect and 5 key things to track
On the upside, he said the market could move towards 25,880–25,900 on the Nifty and 84,000–84,200 on the Sensex if it sustains above resistance, while warning that a slip below 25,600 could accelerate selling pressure, potentially dragging the indices towards 25,500–25,450 and 83,000–82,800. “The strategy should be to sell Nifty at 25750 and at 25850. Keep a stop loss at 25900,” Chouhan added.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)