The markets are in Friday party mode. The Sensex and Nifty are rallying in early trade, snapping their recent losing streak. Both the Sensex and the Nifty moved up sharply in early trade, led mainly by buying in information technology stocks. The Sensex jumped over 700 points and the Nifty is holding steady well above 25,850.
This surge comes after Q3 quarterly updates and signs of easing global tension. This has helped improve short-term sentiment. Market veteran, Deepak Jasani pointed out that, “The IT sector stocks have been rallying on the back of better topline visibility. This has led to the sharp surge in the market on the back of the rally in IT stocks. The revised upward guidance also added to the positive sentiment.” .
Let’s take a look at the 4 reasons behind today’s market rally –
Infosys becomes the key trigger for the rally
One of the key pushes to the market today came from the IT giant Infosys after the company raised its full-year revenue growth guidance while announcing its Q3FY26 results. The IT bellwether now expects revenue growth of 3% to 3.5% for the year, higher than its earlier estimate of 2% to 3%. The company’s FY26 guidance upgrade suggested that demand from clients remains steady, especially in key businesses like financial services.
IT sector moves higher across the board
The rally was not limited to Infosys alone. Buying interest spread across the information technology sector, pushing the Nifty IT index up more than 2% in early trade. Stocks such as Tech Mahindra, Wipro, HCL Technologies, Tata Consultancy Services, LTIMindtree and Mphasis also traded higher, up over 2% each.
Improved earnings visibility in the IT sector has helped lift short-term market confidence. Strong buying in technology stocks, led by guidance upgrades, played a key role in pushing the benchmarks higher during early trade.
Rallies may remain selective, say market experts
Market experts believe that while the market move is positive, it may not develop into a broad-based or sustained rally. With no major global or domestic triggers, the market is expected to remain range-bound and react mainly to individual Q3 earnings rather than move sharply in one direction.
“There are no strong triggers to take the market significantly up or down. A directionless drift is the likely trend. Better-than-expected results will lead to stock-specific action, but these are unlikely to push the broader market much higher. Even minor rallies may be capped by continued FII selling,” said Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments.
Signs of easing global tension
The signs of easing global tension also added to the positive sentiment in the market. Concerns about crude supply risks eased after the likelihood of a US strike on Iran receded. This not only snapped the rally in the crude markets but also helped boost investor sentiment across equity market.