IT Stocks Boost Indian Equities, Ending Losing Streak

Indian equity benchmarks concluded Friday’s trading session higher, ending a two-day losing streak. The upward movement was largely driven by robust performance in heavyweight IT stocks, following positive cues from Wall Street after Nvidia’s strong earnings and optimistic outlook.

Investors closely monitored Federal Reserve Chair Jerome Powell’s Jackson Hole speech later in the day for signals on interest rate trajectory. Domestically, traders remained cautious ahead of India’s Index of Industrial Production (IIP) data for July, also scheduled for release on Friday.

Market Snapshot

• The BSE Sensex closed at 77264.51, gaining 330.92 points or 0.43%.
• The index traded within a range of 76988.22 and 77357.97.
• 19 stocks advanced on the Sensex, with 10 declining and one remaining unchanged.
• The Nifty also ended higher but experienced some selling pressure during the afternoon session.

Heavyweight IT stocks provided significant support, yet Foreign Institutional Investors (FIIs) remained net sellers. FIIs offloaded securities worth Rs 298.26 crore on Thursday, contributing to the Nifty’s afternoon dip.

Key Drivers and Global Sentiment

Traders found support in S&P Global Ratings retaining India’s sovereign rating at ‘BBB’ with a stable outlook. S&P cited India as a dynamic, fast-growing economy backed by policy stability and high infrastructure investment.

Domestic rating agency ICRA’s report also boosted sentiment, projecting India Inc’s revenue growth to moderate to 13-15% in the July-September quarter of 2026-27 (Q2FY27), compared to 21.3% growth in Q1FY27.

Further support came as Union Finance Minister Nirmala Sitharaman highlighted the increasing importance of closer economic cooperation between India and Canada amidst geopolitical uncertainties.

Globally, European markets traded in the green, led by a rally in technology shares. Asian markets, however, closed mixed as investors awaited Federal Reserve Chair Kevin Warsh’s speech at Jackson Hole.

Sectoral Performance

• BSE IT index rose by 3.32%.
• TECK gained 2.15%.
• Bankex climbed 1.01%.
• Metal was up 0.71%.
• Healthcare advanced 0.55%.
• Realty declined 0.29%.
• Oil & Gas fell 0.28%.
• Consumer Durables dipped 0.26%.
• Power decreased 0.24%.