IT Stocks Lift Indian Benchmarks Amid Cautious Sentiment Ahead of US Fed Speech

Indian equity markets held onto modest gains through Friday's mid-session, with information technology stocks carrying the benchmarks higher. The broader market sentiment remained cautious as investors awaited US Federal Reserve Chair Kevin Warsh's first Jackson Hole address later in the day.

At 12:44 pm, the Sensex was trading at 77,099.07, up 165.48 points or 0.22 per cent, against a previous close of 76,933.59, after opening at 77,128.05. The Nifty 50 stood at 24,106.85, up 16 points or 0.07 per cent, compared to its previous close of 24,090.85, after opening at 24,122.60. Both indices slipped to fresh weekly lows intraday before recovering partially, reflecting persistent selling pressure at higher levels.

Technology stocks emerged as the clear standout, gaining nearly 3 per cent as a group. The sectoral surge was driven by Nvidia's blowout quarterly results, which sent US semiconductor and AI-linked stocks sharply higher overnight. TCS led the Nifty 50 gainers, rising 3.81 per cent to ₹2,334. HCL Technologies advanced 2.85 per cent to ₹1,318.60, Infosys gained 2.62 per cent to ₹1,139.90, Tech Mahindra rose 2.50 per cent to ₹1,624.70, and Wipro climbed 2.43 per cent to ₹180.68.

Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, noted that Infosys, TCS, and HDFC Bank were among the top gainers, adding that the strength in technology stocks provided support to the benchmark despite cautious broader sentiment. Shah also pointed out that the advance-decline ratio on the Nifty stood at a weak 19:31, underscoring the narrow nature of the rally.

On the losing side, metals and financials weighed on market sentiment. Tata Steel fell 1.25 per cent to ₹184.46, Shriram Finance declined 1.24 per cent to ₹1,087.40, Bajaj Finserv slipped 1.19 per cent to ₹1,987, Asian Paints fell 1.18 per cent to ₹2,600, and ICICI Bank was down 1.16 per cent to ₹1,426.20. Sectorally, Nifty IT was the best-performing sector, while Nifty FMCG was the worst performer.

BSE market breadth was marginally positive. Out of 4,305 stocks traded, 2,154 advanced and 1,906 declined, while 245 remained unchanged. A total of 153 stocks hit 52-week highs, against 78 touching 52-week lows, with 175 stocks locked in upper circuits and 171 in lower circuits.

Ponmudi R, CEO of Enrich Money, observed that the IT sector emerged as a key outperformer due to a supportive global technology backdrop and renewed optimism around artificial intelligence following Nvidia's upbeat results and outlook.

Meanwhile, the Indian rupee remained under pressure, trading above the ₹95.50-per-dollar mark, weighed down by month-end dollar demand and broader risk caution. Commodity markets saw mixed trends, with COMEX Gold down 0.53 per cent and MCX Gold trading near ₹1,58,289. MCX Crude Oil traded flat near ₹7,960, while US WTI crude held near $83 per barrel.

The session's most critical macroeconomic event remains Warsh's keynote address at the Jackson Hole Economic Policy Symposium, following a US PCE inflation reading of 3.7 per cent. US 10-year bond yields firmed to 4.68 per cent, maintaining pressure on emerging market assets. On the options front, meaningful call writing was observed at the 24,100 and 24,200 strikes, while the 24,000 put carried substantial open interest.

Shah identified 23,860–23,940 as crucial support for the Nifty, with resistance in the 24,180–24,200 zone. For the Sensex, support was placed at 76,600 and resistance at 77,400.

"The performance of the market today highlights how global tech catalysts, particularly artificial intelligence advancements originating in international markets, can directly impact domestic indices. While IT majors provided necessary cushion to the benchmarks, the narrow advance-decline ratio and caution ahead of the US Federal Reserve speeches indicate that investors should remain measured. Balancing portfolios across defensive sectors and monitoring macroeconomic data will be essential in navigating this volatile phase." — Dr. Shishir Gupta, Founder & CEO, StartupLanes