Indian benchmark indices Sensex and Nifty opened sharply higher on Friday, July 10, supported by strong global cues and a rally in IT stocks after TCS’ better-than-expected Q1FY27 results, among other
key factors.
At around 9:53 am, the BSE Sensex was trading 782.21 points or 1.02% higher at 77,524.03, while the Nifty 50 climbed 242.95 points or 1.01% to 24,205.75. Buying remained broad-based across large-cap, mid-cap and small-cap stocks.
The Nifty IT index surged 3.18% in the early trade, making it the top-performing sector in early trade.
5 Key Reasons Why Sensex And Nifty Are Rising Today
1. IT Stocks Rally After Strong TCS Q1 Results
Information technology stocks emerged as the biggest driver of today’s rally after Tata Consultancy Services (TCS) reported stronger-than-expected June-quarter earnings and delivered an optimistic outlook for the coming quarters.
The Nifty IT index jumped over 3%, making it the top-performing sector.
Among the top gainers were TCS (+3.71%), Tech Mahindra (+3.57%), Infosys (+3.58%), HCL Technologies (+3.22%), and Wipro also traded firmly higher.
Investors were encouraged by TCS’ robust deal wins, growing AI business and management commentary indicating that client technology spending could improve from the second quarter.
2. Positive Global Markets Lift Sentiment
Global equity markets provided strong support to domestic equities. Asian markets rallied as investors focused on the continued artificial intelligence-led technology boom, shrugging off renewed geopolitical tensions in West Asia.
Japan’s Nikkei gained around 1.8%, while South Korea’s Kospi surged nearly 4%. The broader MSCI Asia-Pacific index also traded over 1% higher
Wall Street’s technology rally overnight, supported by strong semiconductor stocks and AI-related optimism, also boosted investor confidence across Asian markets.
3. Lower Crude Oil Prices Ease Inflation Concerns
Crude oil prices retreated after an earlier conflict-driven spike. Brent crude traded near $76 per barrel, giving up much of its recent gains despite remaining on track for its strongest weekly performance since early May.
Brent was last quoted at $76.34, down about 2% on Thursday after a rally.
Lower oil prices are positive for India because they help reduce imported inflation, lower input costs for businesses, improve the country’s current account balance, and ease pressure on corporate earnings. The decline in crude supported buying across sectors, especially financials and consumption-linked stocks.
4. India VIX Drops Nearly 4%
Investor confidence improved as market volatility eased. The India VIX fell around 4% to 12.83, indicating lower fear levels in the market. A falling VIX generally reflects improving risk appetite and encourages investors to increase exposure to equities.
The decline in volatility also supported broad-based buying across large-cap, mid-cap and small-cap stocks.
5. Stronger Rupee Boosts Market Sentiment
The Indian rupee on Friday jumped 24 paise to 95.23 against the US dollar in the opening trade, aided by a dip in oil prices and broad-based dollar weakness, although traders cautioned that Middle East war risks continue to lurk in the background.
A stronger rupee helps reduce imported inflation, supports macroeconomic stability and improves foreign investor sentiment toward Indian assets. The currency strength, coupled with easing crude prices, reinforced optimism over India’s economic outlook.
Broad-Based Buying Across The Market
Buying extended across the broader market as investors accumulated mid-cap and small-cap shares. Nifty Midcap 100 rose 0.96% Nifty Smallcap 100 gained 1.29% Nifty 500 advanced 1.02% Nifty Bank climbed 1.09% Nifty Financial Services gained 1.00%
Among sectoral indices, Nifty Metal (+2.07%), Nifty Cement (+1.62%), Nifty Media (+1.44%), Nifty Oil & Gas (+1.42%), Nifty Consumer Durables (+1.31%) and Nifty Private Bank (+1.24%) were among the top gainers.
However, pharma remained the only weak pocket, with Nifty Pharma slipping 0.20% and the Nifty Healthcare Index down 0.23%.
Expert View
Ponmudi R, CEO of Enrich Money, a SEBI-registered online trading and wealth-tech firm, said, “Indian equity markets are today supported by improving global sentiment as the United States and Iran continue technical-level talks despite the recent exchange of military strikes, easing concerns over a broader escalation in the Middle East.”
Global risk sentiment also improved after a strong overnight rally in U.S. semiconductor stocks lifted optimism across the technology sector, providing positive cues for Asian equities. Meanwhile, crude oil prices have stabilized in the $71–72 per barrel range after retreating from recent highs near $76, providing additional support to overall market sentiment, he added.
Technical View
Anand James, chief market strategist at Geojit Investments Limited, said, “The recovery swing having unfolded yesterday on anticipated lines, we are now left with the choice of either playing the upswing till 24200-24229 or position for resumption of Wednesday’s declines. Upside plays can have downside marker at 24040, but downside attempts, if any, are not expected to gain momentum, with 23936-23800 region appearing firm enough for now.”
