Sensex ends 790 points higher, Nifty above 23,600; IT stocks tumble

Benchmark stock market indices ended sharply higher on Thursday, extending gains for a second straight session, as optimism around progress in US-China trade talks and strong earnings in select heavyweights lifted investor sentiment despite the rupee hitting another record low.

The S&P BSE Sensex surged 789.74 points, or 1.06%, to close at 75,398.72, while the NSE Nifty50 gained 277 points, or 1.18%, to settle at 23,689.60.

Vinod Nair, Head of Research, Geojit Investments Limited, said that equities staged a counterintuitive recovery from intraday lows and ended higher despite the rupee hitting a record low and crude remaining elevated.

"Investor confidence was bolstered in anticipation of potential government measures to mitigate INR weakness, including consideration of bond tax relief for foreign investors and potential tightening of the Liberalised Remittance Scheme to stem capital outflows. Sentiment was further anchored by positive cues from the Trump-Xi summit, which raised hopes of expanding economic cooperation," he added.

Global sentiment remained positive after China’s President Xi Jinping said trade discussions with US President Donald Trump were making progress. According to a White House readout, both leaders also agreed that the Strait of Hormuz must remain open to ensure uninterrupted energy supplies.

Broader markets also ended higher, with the Nifty Midcap 100 index rising 1.12%. The Nifty Smallcap 100 index ended largely flat, slipping 0.01%. India VIX, the volatility index, declined 4.18%.

Among sectoral indices, Nifty Pharma emerged as the top gainer, rising 2.74%, followed by Nifty Healthcare Index, which advanced 2.56%. Nifty Metal climbed 2.04%, while Nifty Financial Services and Nifty PSU Bank gained 1.44% and 1.37%, respectively. Nifty Private Bank rose 1.16%, while Nifty Auto, Nifty Realty and Nifty Consumer Durables also ended in the green.

However, Nifty IT dropped 1.99%, extending its four-session decline to nearly 6.9% amid concerns that artificial intelligence-led disruption could hurt earnings growth for technology companies.

On the Sensex pack, Bharti Airtel jumped 5.32% after reporting a rise in quarterly profit. Eternal Ltd gained 3.32%, while HDFC Bank rose 2.67% to snap a five-session losing streak. Adani Ports and Special Economic Zone climbed 2.14%, while Sun Pharmaceutical Industries and Mahindra and Mahindra also ended higher.

On the losing side, Infosys fell 2.46%, Tech Mahindra declined 2.16%, HCL Technologies slipped 1.63%, Tata Consultancy Services dropped 1.18%, and Hindustan Unilever fell 0.84%.

Meanwhile, the Indian rupee weakened further to hit another record low amid persistent foreign outflows and elevated crude oil prices. Foreign investors have pulled out nearly $23.2 billion from Indian equities so far this year.

Brent crude traded near $105.5 per barrel, while WTI crude hovered around $100.7 per barrel, keeping concerns around inflation and India’s import bill elevated.

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