Benchmark equity indices Sensex and Nifty traded higher on Friday, supported by strong gains in information technology stocks after Tata Consultancy Services (TCS) reported better-than-expected quarterly revenue and offered a positive outlook on demand recovery. Firm trends across Asian markets also boosted investor confidence.
At around 10:30 am, the BSE Sensex was trading 783 points, or over 1%, higher at 77,525, while the NSE Nifty gained 245 points, or 1.02%, to trade at 24,208.
The IT sector emerged as the biggest driver of the market rally, rising nearly 3% during early trade.
TCS shares jumped more than 3% after the company’s June quarter earnings and management commentary indicated signs of improving demand conditions from the second quarter.
TCS shares climbed 3.45% to Rs 2,120.30 in early trading, becoming the top gainer on the Nifty 50 index.
The company reported consolidated revenue of Rs 72,275 crore for the June quarter, slightly above market expectations. However, net profit at Rs 13,349 crore was marginally below analyst estimates.
TCS also highlighted strong growth in artificial intelligence-related business, with annualised AI revenue reaching $2.6 billion.
The company reported total deal wins worth $9.5 billion during the quarter, reflecting continued enterprise interest in AI-led solutions.
Brokerages largely described the results as broadly positive, noting that improving demand commentary, strong deal momentum and expansion of AI-driven projects supported the stock outlook.
However, analysts continued to monitor pressure on margins due to higher employee costs and investments in AI infrastructure.
Apart from TCS, broader IT stocks also gained as investors welcomed signs of a potential recovery in technology spending after a prolonged period of cautious client behaviour.
Global cues remained supportive, with Asian markets trading higher. South Korea’s Kospi index gained more than 4%, while Hong Kong’s Hang Seng index advanced around 2%.
Market volatility also eased during the session. India’s volatility index, known as the fear gauge, declined nearly 6% to 12.63, indicating reduced investor anxiety.
The market rebound comes after recent volatility triggered by geopolitical concerns and uncertainty over global economic conditions. Investors are now closely tracking corporate earnings, foreign fund flows and sector-specific recovery trends for further market direction.
