Markets rebound amid strong Q3 performance

Mumbai: Equity benchmark indices Sensex and Nifty bounced back on Friday after a two-day decline, supported by buying in market heavyweights Infosys, HDFC Bank and TCS shares, shrugging off US tariff woes amid mixed global trends. However, a depreciating rupee, spike in international crude prices and unrelenting foreign fund outflows capped the gains, traders said.

In a choppy session, the 30-share BSE Sensex climbed 187.64 points, or 0.23 per cent, to settle at 83,570.35. During the day, it jumped 752.26 points, or 0.90 per cent, to 84,134.97. The 50-share NSE Nifty rose 28.75 points, or 0.11 per cent, to 25,694.35. In a holiday-shortened week, the BSE benchmark dipped 5.89 points, and the Nifty went up by 11.05 points.

“Market sentiment was supported by earnings-related optimism, though mixed global cues continued to cap aggressive positioning. The earnings upgrade from Infosys helped improve risk appetite and brought some stability after recent uncertainty. “At the same time, concerns around a weaker rupee and ongoing global trade-related issues remained on participants’ radar. Overall participation stayed selective and stock-specific, reflecting continued caution amid geopolitical and macroeconomic uncertainties,” Ajit Mishra - SVP, Research, Religare Broking Ltd, said.

From the 30-Sensex firms, Infosys jumped 5.67 per cent after the Bengaluru-headquartered firm saw its revenue from operations grow by 8.9 per cent to Rs 45,479 crore in the third quarter of the current fiscal from Rs 41,764 crore in the year-ago period. It has raised its revenue growth guidance for FY26 to 3-3.5 per cent in constant currency from 2-3 per cent earlier. Tech Mahindra, HCL Tech, State Bank of India, UltraTech Cement and HDFC Bank were also among the gainers. In contrast, Eternal, Asian Paints, Bharat Electronics, Sun Pharma and Maruti were among the laggards.

“The equity markets witnessed positive momentum during the session, driven by better Q3 results from IT and mid-segment banking stocks. However, profit-booking towards the close capped the rally, resulting only in marginal gains for the market. “The IT sector outperformed, supported by an upward revision in revenue growth projections from a leading industry bellwether, coupled with expectations of increased technology spending,” Vinod Nair, Head of Research, Geojit Investments Limited, said.

On the geopolitical front, tensions between the US and Iran eased slightly after reports that the US informed Tehran it would not imminently attack, following diplomatic pressure.