The Indian stock market continues its winning streak and the markets are well on their way to close the week on a positive note. One of the key factors driving today’s rally is the big upswing in the information technology (IT) stocks. This was after Tata Consultancy Services (TCS) reported better-than-expected June quarter earnings and recorded strongest hiring in 4 years.

At the time of writing, both the benchmark indices were trading with strong gains. The Sensex was trading over 800 points, or around 1%, higher above the 77,500 mark. The Nifty also climbed more than 250 points, or around 1%, to trade above 24,200.

The broader market also participated in the rally. The Nifty Midcap 100 gained around 1% and the Nifty Smallcap 100 rose nearly 1.4% in the intraday trade.

So, what is driving today’s sharp recovery? Let’s take a look at the key factors supporting the market today –

IT stocks lead the rally

The biggest trigger behind today’s rally is the strong performance of information technology sector stocks.

The Nifty IT index jumped more than 2%, making it the best-performing sector during the session.

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Tata Consultancy Services (TCS) surged over 4% intraday after reporting a rise in its June quarter net profit and offering a relatively positive demand commentary for the coming quarter.

The stock had been under pressure for several months, declining around 2% in one month, 16% in three months, 33% in six months and nearly 38% over the past 1 year.

Furthermore, the entire IT sector, with Infosys, Tech Mahindra, Wipro and HCLTech also saw buying interest in the intraday trading session.

Analyst sees improving domestic outlook

Commenting on the market, Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments, said., “Tensions in West Asia continue without any clarity of a resolution to the geopolitical crisis. However, interestingly, markets are largely ignoring these negative developments. Brent crude declined 3% in a day and global stock markets have completely ignored the renewed tensions. This confident message from the market is significant. But investors have to be cautious, warranting monitoring of the developments.”

He further added, “From the domestic perspective, there are no major headwinds for the economy now. Stock markets will reflect this economic resilience and will respond positively to positive news from sectors and companies. Broadly, financials and automobiles will remain strong anticipating good Q1 numbers. Select pharmaceuticals and digital platform companies are exhibiting strength, indicating good Q1 numbers. In these segments there are buy on dips opportunities.”

Crude oil prices ease

Another positive factor for Indian markets is the decline in crude oil prices.

Brent crude traded around $76.55 per barrel, extending its recent decline despite continued geopolitical tensions in West Asia.

Lower crude prices are generally positive for India. This is because the country imports a significant portion of its crude oil requirement.

Rupee strengthens against the US dollar

The Indian currency also supported market sentiment.

The rupee appreciated 15 paise to 95.32 against the US dollar, helped by easing crude oil prices and improved risk appetite among investors.

India VIX falls sharply

The India VIX declined around 7% to 12.4, indicating that traders expect lower near-term volatility.

Broad-based buying seen across sectors

Most sectoral indices traded firmly in the green, with financial services, information technology, media, metals, real estate, consumer durables, and oil & gas indices rising between 1-2% in the intraday trading session.

Top gainers at this hour

Among the top gainers on the Sensex 30 pack were Adani Ports (+2.53%), InterGlobe Aviation (IndiGo) (+2.46%), Tech Mahindra (+2.23%), Infosys (+2.08%), Bharat Electronics (+2.08%), and Tata Steel (+2.00%).

Strong gains in these heavyweight stocks helped push both the Sensex and Nifty higher and reinforced the broader recovery across the market.