IT stocks led a sharp rally as the Sensex surged 587.87 points to open at 75,369.63 on Tuesday, following the Ganesh Chaturthi market holiday.
The Nifty50 gained 178.05 points at the open, reaching 23,576.15, in a broad-based move higher.
Infosys was the standout gainer, up 4.22 percent in early trade, with HCL Tech, TCS, Tech Mahindra and HDFC Bank also rising.
The rally came even as Brent crude oil prices held near $107 a barrel and global cues remained mixed.
Indian markets had been shut on Monday for Ganesh Chaturthi, with the previous session on Friday, September 11, closing at 74,781.76 on the Sensex.
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.
Foreign institutional investor activity and crude oil price movements have remained the two most-watched factors shaping Indian market sentiment through September.
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.
National Stock Exchange of India, Mumbai, Wikimedia Commons, CC BY-SA 2.0
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