Although the benchmark indices opened higher, they traded positively throughout the session and ultimately closed green.
Indian equity benchmark indices, Sensex and Nifty50, surged on Friday amid firm buying in IT and banking counters. Also, gains in Reliance Industries ahead of Q1 results added to the positive sentiment.
At the closing bell, the BSE Sensex closed 964 points higher (up 1.2%)
Meanwhile, the NSE Nifty closed 261 points higher (up 1%)
Tech Mahindra, TCS, and Kotak Mahindra were the top gainers today.
Bharti Airtel, Sun Pharma, NTPC, on the other hand, were among the top losers today.
The GIFT Nifty was trading at 24,302, 207 points higher at the time of writing.
The BSE 150 Midcap index is trading 0.2% lower, and the BSE 250 SmallCap index is trading 0.7% lower.
Sectoral indices were trading mixed today, with the realty sector and banking sector witnessing buying. Meanwhile, stocks in the healthcare sector and telecommunication sector witnessed selling pressure.
The rupee is trading at Rs 96.2 against the US$.
Gold prices for the latest contract on MCX are trading 0.1% higher at Rs 1,40,547 per 10 grams.
Meanwhile, silver prices were trading 0.2% lower at 2,15,545 per 1 kg.
4 reasons why Indian stock markets are rising:
#1 Nifty IT Leads Market Rally
The Nifty IT index led the market higher as IT stocks witnessed strong buying. Tech Mahindra gained after reporting strong quarterly earnings and expressing confidence about future demand. TCS, HCL Tech, and Infosys also advanced, lifting the sector.
#2 Buying in Heavyweight Stocks
Heavyweight stocks such as Reliance Industries, HDFC Bank, and ICICI Bank supported the market rally. Reliance gained on expectations of strong quarterly results, while buying in the two private banks further boosted the Sensex.
#3 FIIs and Chip Stock Weakness
Foreign institutional investors (FIIs) have been buying Indian stocks over the past month, despite selling shares on Thursday. Market experts believe India could attract more foreign inflows if weakness in South Korea's chip stocks continues. This could benefit Indian equities in the coming weeks.
#4 Rupee Strengthens
The Indian rupee strengthened by 14 paise to 96.28 against the US dollar on Friday. The recovery was supported by positive sentiment in the domestic stock market. This came after the rupee had weakened for four straight sessions, ending Thursday at 96.42.
Central Bank of India Q1 Business Update
Shares of Central Bank of India came into focus after the company reported its Q1 business update.
Central Bank of India reported a 13.3% YoY increase in net profit to Rs 13.24 billion (bn) for the first quarter of FY27, compared with Rs 11.69 bn in the same period last year.
The bank's total income rose 3.1% YoY to Rs 106.78 bn, while interest income from advances and bills increased 13.9% to Rs 67.56 bn.
Gross non-performing assets (GNPA) increased 6.8% YoY to Rs 92.25 bn, while net non-performing assets (NNPA) rose 31.1% to Rs 17.15 bn. Meanwhile, the operating margin declined to 20.47% from 22.24% a year earlier.
Polycab India Q1 Business Update
Shares of Polycab India came into focus after the company reported its Q1 business update.
Polycab reported a 32.8% YoY increase in consolidated net profit to Rs 7.97 bn for the first quarter of FY27, compared with Rs 6.00 bn in the year-ago period.
The company recorded its highest-ever quarterly revenue, EBITDA, and profit after tax. Revenue rose 39% YoY to Rs 82.10 bn, while EBITDA increased 32% to Rs 11.36 bn.
Revenue from the wires and cables segment, its largest business, grew 37.7% YoY to Rs 72.02 bn. Revenue from the fast-moving electrical goods (FMEG) segment jumped 67.6% to Rs 7.61 bn, while the engineering, procurement, and construction (EPC) business declined 11.4% to Rs 3.08 bn.
The board also recommended a final dividend of Rs 47 per equity share.
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