Sensex Soars 800 Points as TCS Earnings Beat Expectations and IT Stocks Lead Market Rally

Indian equity markets opened sharply higher on Friday, with the Sensex climbing over 800 points and the Nifty 50 reclaiming the 24,150 mark, led by a strong rally in IT stocks after TCS reported better-than-expected Q1 FY27 earnings. Stable crude oil prices below $80 per barrel, easing volatility, and broad-based buying across sectors further lifted investor sentiment.

Sensex and Nifty Extend Gains

Domestic benchmark indices staged a strong recovery after the previous session's volatility, supported by positive earnings from Tata Consultancy Services (TCS) and improving global risk sentiment.

At around 9:20 AM, the market was trading firmly in positive territory.

Market Snapshot

Index	Level	Change
BSE Sensex	77,417.94	+676.12 (+0.88%)
NSE Nifty 50	24,159.10	+196.30 (+0.82%)

The rally was broad-based, with buying visible across large-cap, mid-cap and small-cap stocks.

TCS Earnings Spark IT Rally

The biggest trigger for today's rally was the better-than-expected TCS Q1 FY27 results, which lifted sentiment across the entire IT sector.

The company reported:

• Net profit of ₹13,349 crore, up 5% YoY
• Revenue of ₹72,275 crore, up 14% YoY
• Interim dividend of ₹12 per share
• Order book of $9.5 billion
• Annualised AI revenue run rate of $2.6 billion

The results reinforced confidence that demand for AI-led digital transformation remains strong despite global macroeconomic uncertainties.

IT Stocks Lead the Market

Following TCS' earnings announcement, IT stocks emerged as the top gainers.

Top IT Gainers

Stock	Gain
Tech Mahindra	+3.64%
TCS	+3.48%
HCLTech	+3.43%
Infosys	+3.42%
L&T Technology Services	Strong Gains
Coforge	Positive

The Nifty IT Index surged more than 3%, making it the best-performing sector during early trade.

Strong Hiring Signals Boost Confidence

Apart from healthy earnings, TCS also announced the addition of 9,279 employees during the June quarter.

This marked the company's highest quarterly hiring in more than a year, signalling management's confidence in future business demand.

Management also maintained an optimistic outlook, expecting stronger technology spending from manufacturing and life sciences clients in the coming quarters.

Stable Crude Oil Prices Ease Investor Concerns

Another major positive for the Indian market was the stability in global crude oil prices despite renewed geopolitical tensions in the Middle East.

Crude Oil Prices

Benchmark	Price
Brent Crude	Around $76.52/barrel
WTI Crude	Around $72.29/barrel

Although tensions between the United States and Iran remain elevated, oil prices have stayed below the critical $80 per barrel level, reducing concerns over inflation, India's import bill and corporate profitability.

Broad-Based Buying Across Sectors

The rally was not limited to IT stocks.

Fifteen out of sixteen sectoral indices traded in positive territory.

Top Performing Sectors

Sector	Performance
IT	Strongest Gainer
Financial Services	Positive
Private Banks	Positive
PSU Banks	Positive
Auto	Positive
FMCG	Positive
Realty	Positive
Media	Positive

Broader markets also participated in the rally.

Index	Performance
Nifty Midcap 100	+0.80%
Nifty Smallcap 100	+0.84%

India VIX Falls

Market volatility eased significantly during the session.

The India VIX, often referred to as the market's fear gauge, declined by more than 5%, indicating improving investor confidence and reduced uncertainty.

Top Sensex Gainers

Besides IT companies, several heavyweight stocks also supported the rally.

Major gainers included:

• TCS
• Tech Mahindra
• Infosys
• HCLTech
• ICICI Bank
• HDFC Bank
• Axis Bank
• Reliance Industries
• Mahindra & Mahindra
• Tata Steel
• Adani Ports

What Investors Should Watch Next

While Friday's rally reflects improving sentiment, investors are expected to closely monitor two major developments over the coming weeks:

• June quarter earnings from other large-cap companies
• Further developments in the ongoing US-Iran geopolitical situation

Corporate earnings and crude oil prices are likely to remain the key drivers of market direction in the near term.

Why did the Sensex rise today?

The Sensex rallied after stronger-than-expected TCS Q1 earnings, stable crude oil prices, easing market volatility and broad-based buying across sectors.

How much did the Sensex gain?

The Sensex was up over 800 points during early trade before moderating slightly.

Why did IT stocks rally?

IT stocks gained after TCS reported strong quarterly earnings, announced a ₹12 dividend, maintained a robust $9.5 billion order book and delivered positive management commentary.

How are crude oil prices affecting the market?

Crude oil remaining below $80 per barrel has eased concerns about inflation, higher import costs and pressure on corporate earnings.

Which sectors led the rally?

Information Technology, Financial Services, Banking, Auto, Realty and FMCG were among the top-performing sectors.