Stock market rally: The Sensex and Nifty 50 surged over 2% during intraday trade, raising hopes of a sustained recovery on Dalal Street ahead of Diwali. The rally came amid improving corporate earnings, renewed interest in large-cap stocks and a sharp correction in artificial intelligence-linked equities overseas.
The 30-share Sensex jumped more than 1,500 points, or over 2%, to touch an intraday high of 74,330. Meanwhile, the Nifty 50 climbed approximately 433 points, or 1.9%, to hit the day's high of 23,056, reclaiming the psychologically important 23,000 mark.
Vinod Nair, Head of Research at Geojit Investments Limited, attributed the domestic market's strength to better technology earnings, currency stability and easing bond yields.
"Indian equities advanced as stronger-than-expected technology earnings boosted confidence in corporate profit growth and lifted benchmark-heavy large-cap stocks. Rupee stability and easing bond yields further supported sentiment, bringing financial stocks into focus," Nair said. Nair believes that the strong IT-led earnings season and expectations of decent overall Q2 corporate performance indicated resilience despite a challenging global environment.
IT stocks emerged as key drivers of Thursday's market rally, with Tata Consultancy Services (TCS), Infosys, HCL Technologies and Tech Mahindra extending their gains for a third consecutive session. Stronger-than-expected technology earnings and optimism following HCL Tech's results boosted sentiment.