Sensex jumps 800 pts from day's low, Nifty above 23,550 as bulls fight back; TCS up 5.5%

TCS, Tech Mahindra, Wipro, Infosys, and HCL Tech were the major gainers on the Nifty.

Benchmark indices Nifty and Sensex made a strong comeback on January 10, driven by a robust rally in IT stocks following TCS' stellar Q3 results. While most sectoral indices remained in the red, they managed to pare significant losses, lifting market sentiment.

The IT sector dazzled, with TCS' stellar Q3 results reigniting hopes. Early signs of a discretionary demand revival in the October-December quarter, flagged by the management, have brokerages upbeat about stronger margins by FY26.

At about 11:15 am, the Sensex was up 120.01 points or 0.15 percent at 77,740.22, and the Nifty was up 23.25 points or 0.10 percent at 23,549.75. About 758 shares advanced, 2,553 shares declined, and 94 shares unchanged.

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"In the context of the looming uncertainty regarding President Trump’s likely actions, the market is unlikely to rally in the near term. There appears to be no respite to the sustained FII selling which touched Rs 7170 crores yesterday. This will continue to put pressure on the market," V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said.

He added results of TCS indicate that the IT sector will continue to remain resilient. Results of banking majors will be good but in the context of FII selling the sector may not perform in response to the results. Pharma and select auto stocks like Eicher, M&M and Bajaj Auto are potential outperformers in a weak market.

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The broader market, represented by the mid-small cap indices, began garnering momentum as they traded with losses of 0.8 and 1.1 percent, respectively. The two were off to a torrid start in the opening trade, down almost 2 percent each. The focus now shifts to the broader earnings season, particularly mid- and small-cap companies.

Experts say that any underperformance here could lead to further selling. Given the current environment, cautious trading is advised as there are no indications of a trend reversal, with even minor pullbacks being sold into. The sell-off may persist if Q3 earnings continue to underwhelm.

The Nifty IT index, surging nearly 3 percent, single-handedly drove the markets higher as optimism from TCS' strong earnings buoyed sentiment across the sector. However, other sectors struggled, with the Pharma and PSU Bank indices falling 1.1 and 0.7 percent each. Public sector banks extended their losing streak to a fourth session, weighed down by lacklustre Q3 business updates that fell short of optimistic expectations. The FMCG, Infra, Oil & Gas and Consumer Durable indices also slipped 0.4 percent each.

Read more: IT stocks shine in weak market as TCS' demand outlook, deal wins bring cheer

TCS shares rallied nearly 5 percent to become the top gainer on the Nifty following its Q3 earnings report. The company reported its highest third-quarter order book in five years, with a total contract value (TCV) of $10.2 billion. Drawing optimism, CLSA upgraded the stock to 'outperform' and raised its price target to Rs 4,546, citing improved demand commentary and a sharp uptick in the order book. CLSA also highlighted artificial intelligence (AI) as a growth driver for TCS in the future.

Tata Elxsi buzzed in trade after shares plunged over 7 percent on January 10 after the company reported disappointing results for the October-December quarter (Q3FY25), missing Street estimates. As a result, analysts at Morgan Stanley have downgraded the stock to an "underweight" rating and reduced their target price to Rs 6,000 per share from Rs 6,500.

Shares of Adani Wilmar extended their losing streak for the third consecutive day, falling 9.5 percent to Rs 292 apiece on January 10, as promoter Adani Commodities launched a two-day offer-for-sale (OFS) for non-retail investors. The sale for retail investors is set to begin on January 13. Adani Commodities plans to sell 17 crore shares in Adani Wilmar, which accounts for 13.5 percent of the company’s total issued and paid-up equity share capital.

"Nifty can find support at 23,400 followed by 23,300 and 23,200. On the higher side, 23,600 can be an immediate resistance, followed by 23,700 and 23,800," Hardik Matalia, Derivative Analyst at Choice Broking, said. "The charts of Bank Nifty indicate that it may get support at 49,200 followed by 48,900 and 48,500. If the index advances further, 49,800 would be the initial key resistance, followed by 50,000 and 50,300," he added.

TCS, Tech Mahindra, Wipro, Infosys, and HCL Tech were the major gainers on the Nifty. Shriram Finance, IndusInd Bank, UltraTech Cement, Sun Pharma, and Adani Enterprises were the major laggards on the index.