Indian equity benchmarks extended their early gains on Friday, with the Sensex and the Nifty trading higher as buying momentum strengthened through the morning, led by IT stocks after upbeat earnings-driven sentiment. However, investors remained guarded on whether the early gains can sustain amid persistent foreign fund selling and a lack of strong macro triggers.
At 09:50 am, the benchmark indices were up around 0.4 percent, with the Sensex rising 359.3 points to 83,742 and the Nifty gaining 82 points to 25,747.7. Market breadth improved further, with 1,888 stocks advancing against 1,378 declines, while 213 shares were unchanged, indicating broader participation as the session progressed.
The early uptick comes after Indian markets ended lower in a volatile session on January 14, as investors stayed on the sidelines ahead of a closely watched US Supreme Court ruling on President Donald Trump’s tariff measures, which eventually did not materialise. With that near-term overhang fading, attention has shifted to corporate earnings and stock-specific triggers.
IT stocks led gains at the open after Infosys surged nearly 5 percent following a strong Q3 FY26 performance, upbeat deal wins and a raised revenue growth outlook. The rally spilled over to peers such as Wipro, Tech Mahindra and HCL Technologies, pushing the Nifty IT index up nearly 3 percent. Realty and PSU banking stocks also showed early strength, while pharma and metal stocks traded lower.
Global cues were supportive. US markets rose overnight after strong earnings from major banks and upbeat results from Taiwan Semiconductor Manufacturing Company boosted confidence in the AI-driven growth outlook. Asian equities were mixed but remained on track for their longest weekly winning streak since May, aided by sustained interest in technology stocks.
Despite the positive open, analysts cautioned that the broader market remains trapped in a consolidation zone. Shrikant Chouhan, head of equity research at Kotak Securities, said the market is still non-directional, with immediate resistance near the 25,800-25,900 zone and strong support around 25,600. “Traders are perhaps waiting for either side to break out,” he noted in his morning commentary.
Echoing a cautious tone, VK Vijayakumar, chief investment strategist at Geojit Investments, said there are “no triggers to take the market significantly up or down,” adding that even minor rallies are likely to be neutralised by continued FII selling, with earnings-driven, stock-specific moves dominating in the near term.
On the flows front, foreign institutional investors sold equities worth about Rs 4,781 crore on January 14, extending their selling streak, while domestic institutional investors provided support with net purchases of around Rs 5,217 crore. India VIX edged lower, indicating easing volatility expectations, but analysts believe sustained direction will emerge only if the Nifty decisively breaks out of its 25,473-25,900 consolidation range.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
