Sensex jumps 508 points as IT stocks rally on Fed-cut bets

Market opens higher on positive global cues

Domestic equity benchmarks advanced in early trade, tracking firmer global sentiment after weaker-than-expected US jobs data reinforced expectations of a US Federal Reserve interest rate cut at its upcoming policy meeting. The risk-on tone supported broad-based buying at the open. IT stocks led the move as traders linked a potentially easier US monetary stance to better demand conditions for technology services. The Nifty traded above the 24,300 level during the session, signalling strength in headline indices at the start of trade.

Key levels at 10:30 IST

At 10:30 IST, the S&P BSE Sensex was up 508.29 points, or 0.66%, at 78,010.41. The Nifty 50 rose 173.60 points, or 0.70%, to 24,347.95. The early move was consistent with the day’s theme of IT outperformance, as technology shares extended gains for the second consecutive trading session. The broader tone was supported by improved global risk sentiment, as reflected in the bid for cyclical and export-oriented counters.

IT stocks drive sectoral gains

The Nifty IT index jumped 1.70% to 27,423.55 in early trade. The index was reported to have surged 6.41% over two consecutive trading sessions, underlining the pace of the sector rebound. Buying was concentrated in frontline technology names, with market participants positioning for a more supportive rate backdrop in the US and a potential improvement in client spending. The IT rally stood out against the backdrop of mixed performance elsewhere, reinforcing the sector’s influence on both the Sensex and Nifty when global cues are supportive.

Thursday close: Sensex ends higher, IT remains the standout

In the later market update provided, India’s BSE Sensex closed about 0.75% firmer at 77,502 on Thursday, extending the previous session’s gains amid positive global cues and renewed strength in IT stocks. Another data point in the feed notes the Sensex rose 579 points, or 0.75%, to close at 77,502 points. Investors were encouraged by falling oil prices and expectations that central banks may adopt a less aggressive policy stance if inflation continues to cool. The update also cited optimism over constructive US-Iran talks in Doha, along with Fed Chair Kevin Warsh’s inflation remarks, as supportive for sentiment.

Stock-specific moves: winners and laggards

Tech stocks were the standout performers in the closing update, with Infosys, Tech Mahindra, and other frontline IT companies rising between 4% and 5.6% on bargain hunting after a four-day losing streak and optimism over tech spending. Another snapshot listed the day’s leaders as Infosys (5.96%), Tech Mahindra (4.57%) and HCL Tech (4.56%). Outside IT, the gainers named included Bajaj Finserv (3.3%), Adani Ports (1.9%), Titan (1.7%) and ICICI Bank (+1.5%). On the downside, L&T (-0.8%) and Maruti (-0.4%) were cited as laggards, while another list included Larsen & Toubro (-0.87%), Axis Bank (-0.69%) and Nestle India (-0.56%) among top losers.

Derivatives and volatility indicators highlighted

A market snapshot in the feed flagged a put-call ratio (PCR) of 1.31, interpreted as bullish and indicating strong put writing. India VIX was stated at 12.29, pointing to low expected volatility. The same note mentioned broad-based breadth with an A/D (advance-decline) reading of 3.29. It also referenced DII buying of +₹1,784 crore offsetting FII outflow, adding another layer of context around institutional positioning in the session.

Global triggers: rates, oil, and geopolitics

The day’s narrative in the provided material repeatedly tied the move to macro signals. Weaker US jobs data was presented as the immediate trigger reinforcing rate-cut expectations. Falling oil prices were also cited as supportive, as they can ease inflation pressure for import-dependent economies. The mention of constructive US-Iran talks in Doha added a geopolitical angle to risk sentiment, complementing the market’s focus on central bank policy expectations.

AI-linked rally spills into Indian IT

A separate market update in the material explained that Indian IT stocks also benefited from a broader global rally in artificial intelligence-linked shares. It cited strong earnings and a demand outlook from US-based Snowflake as a key trigger. Snowflake’s shares were said to have surged nearly 50% over four trading sessions after it raised its annual revenue forecast and announced a $1 billion multi-year agreement to use Amazon’s cloud services and AI chips. In India, the move was reflected in broad-based gains across large-cap and mid-cap IT stocks, and one example provided was Infosys rising 3.6% to close at ₹1,202.5.

Performance context: month up, year still lower

The feed also provided a broader performance frame for the benchmark. It said the Sensex has climbed 4.24% over the past month, though it remains 6.89% lower than a year ago, based on trading in a contract for difference (CFD) that tracks the benchmark index. This context matters because it shows the index recovering in the near term even as the longer one-year comparison remains negative.

Key data at a glance

Why this move matters for investors

The provided updates underline a familiar pattern for Indian equities: global rates expectations can quickly shift leadership toward export-heavy sectors like IT. The scale of the IT index move across two sessions, alongside large single-day gains in key constituents, shows how rapidly positioning can reverse when global cues turn supportive. At the same time, the broader benchmark context - up over the month but still lower on a one-year basis - highlights why investors continue to track both near-term catalysts and longer-term recovery.

What to watch next

The market’s focus remains tied to incoming global macro data and central bank signals, particularly around the Fed’s policy direction. Investors will also keep a close watch on sector rotation, since the session updates showed IT leading while certain domestic cyclicals and defensives appeared among laggards in different lists. Separately, developments in global tech spending signals and AI-linked demand narratives, referenced through the Snowflake update, are likely to stay on the radar for IT stock performance.