IT rally drives Sensex 587 points higher as trading resumes

An IT sector rally drove the Sensex 587.87 points higher to open at 75,369.63 as trading resumed on Tuesday.

The Nifty50 opened 178.05 points up at 23,576.15, with the broader market also moving higher.

Infosys led gainers with a 4.22 percent rise in early trade, joined by HCL Tech, TCS, Tech Mahindra and HDFC Bank.

The rally held despite Brent crude oil prices staying near $107 a barrel and mixed global market cues.

Markets had been closed on Monday for Ganesh Chaturthi, with the Sensex closing at 74,781.76 in the previous Friday session.

The Nifty50’s gain of over 178 points at the open reflected broad-based buying interest rather than a narrow, sector-specific rally.

Indian benchmark indices have shown notable volatility through September, swinging between sessions of sharp declines and sessions of strong recovery.

Trading volumes on the opening day after a market holiday are often elevated as investors react to news and global developments that accumulated during the closure.

Analysts have pointed to resilient corporate earnings expectations in the IT sector as a factor supporting the sharp opening gains.

The BSE Sensex and NSE Nifty remain the two primary benchmarks used to track the overall health of Indian equity markets.

Infosys led the gainers on the Sensex, rising 4.22 percent in early trade, with HCL Tech, TCS, Tech Mahindra and HDFC Bank also among the top performers.

The rally in IT shares came despite mixed global cues, with Brent crude oil prices staying near $107 a barrel during the session.

Markets had been closed on Monday, September 14, for the Ganesh Chaturthi holiday, with the last trading session on Friday, September 11, seeing the Sensex close at 74,781.76.

The IT sector rally is being watched closely as a signal of how Indian technology services firms are pricing in demand recovery from key overseas markets.

National Stock Exchange of India, Mumbai, Wikimedia Commons, CC BY-SA 2.0