Sensex jumps 965 points, Nifty tops 24,300 on IT rally
What's the story
Indian benchmark indices, Sensex and Nifty, witnessed a massive rally on Friday. The surge was led by strong buying in IT stocks and upbeat earnings from Jio Financial Services. At the close of trading, the Sensex had gained 964.58 points or 1.25% to reach 78,151.45, while Nifty50 rose by an impressive 261.55 points or over 1% to cross the key psychological level of 24,300.
Market movers
IT stocks lead market rally
The IT sector played a major role in the market's rally. Tech Mahindra's better-than-expected revenue growth and margins for the June quarter bolstered confidence in its turnaround.
The Nifty IT index rose by 1.75%, with Tech Mahindra surging 4.14% and TCS climbing 3.09%.
However, it's worth noting that the broader market remained under pressure with sectors like Pharma witnessing declines of over 1% and Metal declining 0.47% on Nifty50.
Earnings impact
Jio Financial Services reports stellar earnings
Jio Financial Services's stock surged by 3.11% after the company reported a whopping 156% year-on-year (YoY) jump in its June quarter consolidated net profit.
The company's revenue also witnessed a massive 227% rise, driven by strong growth in interest income and fee-based businesses.
Meanwhile, Reliance Industries gained 2.36% ahead of its June quarter earnings due later on Friday.
Financial boost
Financial stocks boost market further
Financial stocks also contributed significantly to the market's gains, with the Nifty Bank index rising by 1.63% and the Nifty Private Bank index advancing by 2.12%.
Kotak Mahindra Bank gained a whopping 3.39%, while ICICI Bank and Bajaj Finance rose around 1.8% each.
The rally was further bolstered after Nifty reclaimed the 24,200 level in early trade, with Ponmudi R CEO of Enrich Money saying sustained move above that could strengthen bullish momentum toward an advance toward levels of 24,300-24,400.