Indian equity markets opened sharply higher on Friday, breaking a recent losing streak, as strong buying interest in information technology stocks lifted investor sentiment. The rally was largely driven by Infosys after the country’s second-largest IT services company delivered better-than-expected quarterly results and upgraded its revenue growth outlook for the full financial year.
By around 10:30 am, the S&P BSE Sensex was trading 709.60 points higher at 84,092.31, while the NSE Nifty50 rose 195.50 points to 25,861.10. Both benchmark indices gained close to 1% in early trade, supported by strength in IT stocks along with selective buying in banking and auto shares. The gains came after several consecutive sessions of decline, offering some relief to investors.
Infosys Sets the Tone
Infosys emerged as the clear catalyst for Friday’s market rebound. The IT major surprised investors earlier this week by raising its revenue growth guidance for the full year. The company now expects revenue to grow between 3% and 3.5%, compared with its earlier projection of 2% to 3%. Management cited stable client spending, steady deal wins, and improving traction in key verticals as reasons for the upward revision.
Despite reporting a 2.2% year-on-year decline in net profit to ₹6,654 crore for the December quarter (Q3 FY26), market participants focused on the stronger outlook rather than the short-term dip in earnings. The results suggested that demand conditions, particularly in core markets, remain resilient even amid global economic uncertainty.
Infosys also highlighted solid performance in its financial services segment, which accounts for nearly one-third of its total revenue and grew 3.9% during the quarter. The communications segment stood out as the fastest-growing business, expanding by 9.9%. In addition, the company announced new deal wins linked to artificial intelligence, including projects with global players such as Adobe and Siemens AG, adding to optimism around its long-term growth prospects.
The positive reaction was evident globally as well. Infosys’ American Depository Receipts (ADRs) surged more than 10% in New York following the earnings announcement, after the stock had already posted strong gains in the previous session.
IT Stocks Rally Across the Board
The upbeat outlook from Infosys lifted the entire IT pack, which has been under pressure in recent months due to concerns over slowing global tech spending. On the Sensex, Infosys was the top gainer, rising nearly 5% in early trade. Other IT majors also advanced, with Tech Mahindra gaining over 2% and HCL Technologies moving higher by more than 1%.
On the NSE, the Nifty IT index jumped over 2%, with all constituents trading in positive territory. Besides Infosys, stocks such as Mphasis, Wipro, LTIMindtree, Oracle Financial Services Software, Coforge, TCS, HCLTech, and Persistent Systems posted solid gains, reflecting renewed investor confidence in the sector.
Broader Market Support
Beyond IT, a few other heavyweight stocks contributed to the market’s upward move. Auto major Mahindra & Mahindra rose over 1%, supporting the auto index. Banking and financial stocks also traded higher, though gains in these segments remained relatively modest.
Among sectoral indices, Nifty IT emerged as the top performer, followed by Nifty Realty and Nifty PSU Bank. FMCG, auto, financial services, pharma, metal, private banks, and oil and gas indices also edged higher. However, not all sectors participated in the rally. Media and healthcare stocks underperformed, slipping into negative territory during early trade.
Outlook Ahead
Overall, sentiment on Dalal Street improved significantly after Infosys’ results eased concerns about demand in the IT sector. The strong start to the day suggests that investors are selectively returning to equities after recent volatility.
Market participants will now turn their attention to upcoming quarterly earnings from other major companies, as well as global cues, to assess whether the rebound can be sustained. For now, Infosys’ performance and outlook have provided a much-needed boost, helping markets close the week on a positive note.