Infosys Results Spark IT Stock Rally; Indian Markets Trim Gains Before Close

ZenZKPlayer · 2026-01-21T02:04:08+00:00

Indian equities experienced modest gains driven by a surge in IT stocks following Infosys's strong quarterly results. Market sentiment was bolstered by easing geopolitical tensions and political victories, although declines in other sectors limited overall growth.

ZenZKPlayer

2026-01-21 02:04:08

Abstract generation in progress

Indian equities notched modest gains on Friday, with information technology stocks stealing the spotlight after Infosys delivered blockbuster quarterly results and raised its full-year revenue guidance. Despite strong opening momentum, the market gradually shed its early advantages as traders locked in profits.

The rally in IT shares proved the standout story of the session. Infosys jumped 5.7 percent following its better-than-forecast earnings announcement and upward guidance revision. The sector’s strength carried over to its major peers, with Tech Mahindra and HCL Technologies advancing 5.2 percent and 1.8 percent respectively. This performance underscored investor confidence in the information technology space’s near-term prospects.

Beyond the tech surge, several factors colored market sentiment positively. Easing geopolitical tensions between Iran and the U.S. pushed oil prices lower, providing relief to India’s import-heavy economy. Domestically, the BJP-led Mahayuti alliance’s decisive victory in Maharashtra civic elections across 29 municipal corporations buoyed investor mood. Banking stocks capitalized on this optimism, posting modest gains alongside their tech counterparts.

However, weakness in other sectors prevented the market from building on its morning strength. Pharmaceutical and consumer durables shares retreated, with Sun Pharma, ITC, Maruti Suzuki India, and Asian Paints all declining around 2 percent. Eternal sank 3.9 percent, while construction and defense stocks also faced selling pressure.

The benchmark BSE Sensex reached an intraday peak of 84,134.97 before settling at 83,570.35, up 187.64 points or 0.23 percent. The broader NSE Nifty climbed to 25,873.50 intraday but closed at 25,694.35, gaining 28.75 points or 0.11 percent. Mid-cap shares edged up 0.2 percent while small-cap equities retreated 0.5 percent.

Market breadth remained subdued, with 2,360 declining stocks outweighing 1,873 gainers and 161 unchanged shares on the BSE. UltraTech Cement and the State Bank of India both rose around 1 percent, providing secondary support to the broader index.

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.