Powered by IT bounce, Sensex reclaims 80K mark for 1st time since Dec 2023

Gain for 7th straight session buoyed by a rally in beaten-down IT stocks

Indian equities extended gains on Wednesday, driven by optimism over easing US-China trade tensions and a rally in information technology (IT) stocks. The Sensex reclaimed the 80,000 mark for the first time since December 18, 2024, closing at 80,117 — a gain of 521 points (0.6 per cent). The Nifty rose 162 points (0.7 per cent) to settle at 24,329. Both indices gained for the seventh consecutive session.  

The Sensex and Nifty have had two seven-session winning streaks in the past five weeks — the longest since August 20 to September 2, 2024. 

Sentiment was further buoyed up by US President Donald Trump’s reassurance on Tuesday that he does not plan to dismiss Federal Reserve (Fed) Chair Jerome Powell. 

 

Over this period, the total market capitalisation of BSE-listed firms surged by ₹36.7 trillion, reaching ₹430.5 trillion. 

IT stocks spearheaded Wednesday’s rally, with Infosys climbing 3.7 per cent, HCLTech soaring 7.7 per cent, and Tata Consultancy Services advancing 2.8 per cent. The sector’s outperformance followed HCLTech’s revised revenue guidance, projecting constant-currency growth of 2–5 per cent for the year. Though lower than historical forecasts, this outlook surpassed Infosys’ estimated range of 0–3 per cent. 

The Nifty IT index surged 4.3 per cent, marking its sharpest single-day gain since July 12, 2023. Meanwhile, banking stocks saw some profit-taking after a six-day, 10.8 per cent jump, with the Nifty Bank index ending 0.5 per cent lower. 

Investor sentiment also drew strength from Trump’s remarks signalling a softer stance on China. He emphasised intentions to reduce tariffs “substantially, if not to zero”, contingent on a trade deal. 

Trump also quelled speculation about replacing Powell, easing concerns sparked by his earlier social media posts criticising the central bank.  

Trump said on Tuesday that he had no intention of removing the US Fed chief but would like to see Powell be more active in lowering interest rates. His earlier statements had raised concerns about the US central bank’s independence. 

The dollar index edged up 0.19 per cent to 99.1, while the 10-year US Treasury yield settled at 4.29 per cent. Gold prices dipped 2.7 per cent to $3,290 per ounce as equities and bonds rallied. 

Siddhartha Khemka, head of research at Motilal Oswal Wealth Management, said, “Sector-specific momentum will intensify as the fourth-quarter (Q4) earnings season progresses. Overall, we expect the upmove to continue in the Indian market because of continued buying interest and supportive domestic cues while tracking developments on the US tariff front.” 

Foreign portfolio investors purchased shares worth ₹3,333 crore, while domestic institutions offloaded ₹1,235 crore. Progress in trade talks and the results season in India will contribute to index gains. 

Vinod Nair, head of research at Geojit Financial Services, cautioned, “Mixed Q4 results, rising crude oil prices, and recent market outperformance may trigger near-term consolidation.” 

Market breadth remained positive, with 2,028 advancing stocks outpacing 1,949 decliners.