Markets extend gains on IT surge; Infosys share buyback buzz lifts sentiment

Market Today

India’s benchmark indices closed higher for the fifth straight session on September 9, led by a rebound in software exporters after Infosys announced it would consider a share buyback.

The rally tracked firm global markets, with investors betting on the likelihood of a U.S. Federal Reserve rate cut at its upcoming policy meeting.

At close, the Sensex rose 314 points, or 0.39 percent, to 81,101, while the Nifty 50 gained 95.45 points, or 0.39 percent, to settle at 24,868.60. The rupee also strengthened against the U.S. dollar, recovering from record lows touched last week.

“Domestic equities edged higher on positive global cues, with IT stocks rallying on Infosys’s buyback announcement despite prevailing headwinds. Auto stocks, however, saw profit-booking after recent gains on GST rationalisation. While sentiment remains range-bound amid global uncertainties, prospects of a Fed rate cut and supportive domestic macros may sustain optimism in the near term,” said Vinod Nair, Head of Research, Geojit Financial Services.

Infosys was the top contributor to the Nifty’s gains, surging 5 percent—its steepest rise since May 12. Tech Mahindra, HCL Tech and TCS advanced between 1 percent and 2 percent, lifting the Nifty IT index 2.7 percent. Pharma and FMCG added 1 percent and 0.6 percent, respectively, while Realty and Oil & Gas slipped 0.2 percent each.

On the technical front, Nifty reclaimed its 100-day moving average at 24,820. “Momentum indicators have turned positive, with the RSI crossing above 50, pointing to short-term bullishness. However, the index faces a crucial resistance near the 25,000 mark. A decisive breakout above this zone is required to confirm a fresh upward leg, while immediate support lies at the 21-DMA of 24,720,” said Nilesh Jain, Head – Technical and Derivatives Research, Centrum Broking.

Investor focus now shifts to key U.S. inflation prints, with producer price data due Wednesday and consumer price data on Thursday.