Sensex gains 200 pts, Nifty above 25,650: Infosys-led IT buying among key factors behind market rally

Share Market Today: Sensex, Nifty Update

• Sensex and Nifty rose as Infosys raised its revenue forecast, boosting IT stocks.
• Infosys shares rose 5%, lifting the Nifty IT index by almost 3%.
• Global cues, lower crude prices, and trade deal hopes boosted market sentiment.

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The equity benchmark indices Sensex and Nifty traded higher on Friday, tracking strong buying interest in IT stocks after Infosys reported better-than-expected quarterly results and raised its full-year revenue growth guidance.

The Sensex settled 187.64 points or 0.23 percent higher at 83,570.35, while the broader Nifty advanced to 25,694.35, up 28.75 points or 0.11 percent.

Strong buying was seen in IT shares as Infosys, Wipro and Tech Mahindra were among the top gainers in the Nifty50 pack, rising up to 5 percent, while Cipla and ETERNAL were among the major laggards, declining up to 2 percent.

Key factors behind market rise

1) Buying in IT shares: Shares of Infosys surged over 5 percent, best in four months, after the IT major posted its Q3 FY26 results and revised its revenue growth outlook upward. The country’s second-largest software services exporter raised its revenue forecast to 3–3.5 percent from 2–3 percent earlier, citing stable discretionary spending and improved momentum in the financial services segment.

The rally in Infosys also lifted sentiment across the IT pack, with all 10 constituents of the Nifty IT index trading higher. The Nifty IT index emerged as the top sectoral gainer, rising nearly 3 percent to 38,851.85.

"Markets have received a boost from Infosys' results and commentary. With IT company valuations at attractive levels, there is buying interest and short-covering in the sector," Kranthi Bathini, director of equity strategy at WealthMills Securities told Reuters.

Analysts said Infosys is well-positioned to win market share through stronger AI partnerships and deeper client engagement.

2) Positive global cues: Cues from global markets further supported domestic equities. In Asia, South Korea’s Kospi index was trading higher, while US markets ended in the green overnight.

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3) Crude declines: Lower crude oil prices also aided sentiment. Brent crude, the global oil benchmark, slipped 0.24 percent to USD 63.61 per barrel. Declining oil prices tend to ease inflationary pressures and reduce India’s import bill, which is supportive for equity markets. Oil prices settled down around 4 percent on Thursday on easing concerns over potential U.S. military action against Iran, supply disruptions.

4) India-US trade deal hopes: Investor sentiment was also buoyed by hopes of progress on an India-US trade deal. Commerce Secretary Rajesh Agrawal has said the first tranche of the proposed agreement, aimed at lowering reciprocal tariffs on Indian exports, was close to being finalised, though no timeline could be committed. He said negotiating teams from both sides were in continuous talks following a virtual meeting between Commerce Minister Piyush Goyal and the US Trade Representative last month.

First tranche of India-US trade deal near

5) Decline in fear gauge: The India VIX, a measure of market volatility, declined 1.24 percent to 11.18. A lower VIX indicates reduced fear among investors and generally supports risk-taking in equities.

6) Buying in bank shares: Strong buying was seen in heavyweight bank shares, ahead of the December quarter results by HDFC Bank, ICICI Bank, IDBI Bank and Yes Bank on January 17.

Technical Analysis 

On the technical front, Anand James, Chief Market Strategist at Geojit Investments Ltd, said support around the 25,600 level has helped a reversal pattern take shape in the Nifty. He said sustained trading above 25,715 would be required for further upside, with a potential target of 26,020. However, he cautioned that a slip below 25,600 could increase the chances of a decline towards 25,060.

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