Sensex jumps 700 points as TCS lifts IT in 2026

Market opens higher, IT leads the move

Indian equities opened higher on Friday, with benchmark indices extending gains in early trade as information technology stocks rallied. The move was linked to better-than-expected June quarter results from Tata Consultancy Services (TCS), India’s largest software exporter. Stable crude oil prices also helped sentiment, easing concerns about the impact of ongoing US-Iran tensions. Early trading indicated broad-based buying in IT counters, while the rebound also followed a period of recent volatility in the wider market.

Sensex and Nifty levels in early trade

The S&P BSE Sensex opened at 77,395.63 and was reported to have climbed 676.12 points, or 0.88%, to 77,417.94 in early trade. Another update from the same morning said the Sensex rose by 694.83 points to 77,423.82. The NSE Nifty was reported higher by 195.95 points to 24,154.85 in early trade. These figures reflected a strong opening momentum, with IT emerging as the primary driver.

TCS triggers buying across IT stocks

The rally was driven by IT stocks after TCS reported quarterly earnings that beat market expectations. TCS traded nearly 2% higher in early trade following the results. The company reported a 4.61% increase in its June-quarter net profit to Rs 13,349 crore. TCS also guided towards an improvement in demand impacted by the West Asia crisis, returning in the ongoing quarter. The combination of earnings delivery and commentary helped lift sector sentiment.

Nifty IT index jumps, tops sectoral charts

The Nifty IT index jumped over 3%, making it the top-performing sector in early trade. In intraday deals, the Nifty IT index was up 3.5% at 28,439.55. At 09:38 AM, the Nifty IT index was reported up about 1.75% to 1.8%, compared to around a 1% rise in the Nifty 50. The data points showed that IT was outperforming the broader market even as other sectors participated in the opening rise.

A rebound after recent pressure on IT stocks

The IT rally came after a sharp correction last week, with investors turning optimistic on easing concerns around US interest rates and attractive valuations ahead of earnings. The sector rebound was also described as continuing for a second straight session ahead of the Q1 earnings season, with the Nifty IT index gaining 2.43% on one of those sessions. In another trading update, IT stocks were reported to have logged a third consecutive session of gains, even as broader markets remained under pressure.

Stock-specific moves: TCS, Infosys, HCLTech and others

IT heavyweights led the move. In one market snapshot, HCLTech surged 3.08%, while Tech Mahindra and Infosys gained 2.81% each, and TCS rose 1.82%, helping cushion losses in benchmark indices. In another update from a separate session, Infosys was up more than 4% at ₹1,252, followed by TCS up 3.5% at ₹2,377. The reports also said all 10 constituents of the Nifty IT were trading in the green during that phase.

Broader market contrast and a notable laggard

While IT supported the market, some pockets saw sharp profit-taking. Retail major Trent was cited as the biggest laggard in one session, plunging 12.42% after its June quarter business update fell short of Street expectations. Separately, the broader market tone was described as mixed at times, with one update noting the Nifty 50 slipping 0.4% even as the Nifty IT index gained.

Key metrics and market snapshot

Demand cues, crude stability, and geopolitical overhang

Beyond earnings, crude oil stability was highlighted as a supportive factor for equities. The market narrative pointed to reduced immediate concern over the impact of US-Iran tensions on energy prices. On the corporate side, TCS’s guidance about demand improvement, after being impacted by the West Asia crisis, added an additional layer of support to IT sentiment.

What the commentary signalled for IT sentiment

A separate market update linked an IT-led surge to management commentary from TCS on the demand outlook and deal cycle. Narendra Solanki, head, fundamental research - investment services at Anand Rathi Shares and Stockbrokers, said: “The management commentary on improving demand outlook and deal cycle along with recovery in discretionary spending is a major positive from the TCS results that led to the uptick in the shares today.” While the broader market can remain sensitive to global cues, this kind of commentary tends to influence near-term positioning in large-cap IT.

Conclusion

Friday’s early trade was defined by a sharp IT-led move, with TCS results and commentary helping the Nifty IT index outperform. Benchmark indices Sensex and Nifty opened higher, while stable crude prices offered additional comfort amid geopolitical tension. The next market focus remains on the ongoing earnings season and how other large IT companies report and guide on demand.