Realty, PSU Banks Lead Broad-based Rally as TCS Sparks IT Rebound

Mumbai, July 10: Most sectoral indices ended firmly in positive territory on Friday as investors lapped up beaten-down technology shares following Tata Consultancy Services‘ better-than-expected June-quarter revenue, while real estate and state-owned lenders extended their recent momentum. 

Optimism over the start of the earnings season helped investors look beyond global uncertainties.  

Realty stocks emerged as the biggest winners, with the Nifty Realty index jumping 3.5 per cent as investors accumulated rate-sensitive counters on expectations that easing inflation and stable interest rates could continue to support housing demand. 

The Nifty PSU Bank index followed closely, rallying 3 per cent. The gains reflected improving sentiment toward domestic cyclicals as investors rotated into sectors seen benefiting from India’s resilient economic growth. 

IT rebounds after TCS earnings 

The Nifty IT index climbed 2 per cent, recovering from recent weakness after Tata Consultancy Services reported quarterly revenue above analysts’ estimates, aided by stronger spending from banking clients and the benefit of a weaker rupee.

Nifty IT got inspired by TCS results as shares staged a rebound. Source: NSE 

TCS shares rose after the earnings announcement, lifting peers including Infosys, HCLTech, Tech Mahindra, Wipro, LTIMindtree, Mphasis and Coforge. The company’s management also struck an optimistic tone on demand from manufacturing and life sciences clients, while analysts said the revenue performance was “better than feared” following weak results from Accenture and expected sequential improvement in the September quarter. 

The earnings provided a much-needed boost to the technology sector, which has faced persistent concerns over slowing discretionary spending, artificial intelligence-led disruption and an uncertain global demand environment. Even so, analysts expect the recovery across India’s $315-billion IT services industry to remain gradual over the coming quarters.  

Realty stocks lead market rally 

Real estate stocks emerged as the biggest gainers on Friday, with the Nifty Realty index soaring 3.5 per cent as investors accumulated rate-sensitive counters on expectations that easing inflation and a stable interest-rate environment could continue to support housing demand. Shares of DLF, Godrej Properties, Prestige Estates Projects, Oberoi Realty, Phoenix Mills, Brigade Enterprises and Sobha were among the gainers in the sector. 

PSU banks keep shining 

The Nifty PSU Bank index rallied 3 per cent, extending gains. State Bank of India, Punjab National Bank, Bank of Baroda, Canara Bank, Union Bank of India and Indian Bank advanced, reflecting improving sentiment towards lenders that are expected to benefit from resilient credit growth and healthy asset quality.  

Indian Bank reported a standalone net profit of Rs 3,273 crore for the June quarter, marking an increase of over 10 per cent from a year earlier. Net interest income grew nearly 17 per cent, while the state-owned lender also recorded an improvement in asset quality and healthy growth in advances. The robust earnings prompted investors to cheer the results, sending the stock up about 10 per cent.  

Metal stocks join the rally 

Metal shares also attracted strong buying interest, pushing the Nifty Metal index up 1.5 per cent. Tata Steel, JSW Steel, Hindalco Industries, Jindal Steel & Power and Vedanta were among gainers as investors rotated into cyclical sectors amid improving global risk appetite and expectations of stronger industrial demand. 

Others 

The Nifty Bank index gained 1.4 per cent on strength in heavyweight private lenders. 

Oil & Gas, Private Bank, Energy, Infrastructure and Consumer Durables indices rose between 1 per cent and 1.3 per cent, reflecting broad participation in the rally. The Nifty Auto index added 0.72 per cent, supported by expectations that a healthy monsoon season could improve rural demand in the coming months.

Nifty Financial Services clocked gains, rising 1.3%. Source: NSE  

Broader markets also mirrored the upbeat sentiment. The Nifty Midcap 100 index rose 1.5 per cent, while the Nifty Smallcap 100 gained 1.4 per cent, indicating investors were willing to move beyond large-cap defensive names into higher-beta stocks. 

Among Nifty50 constituents, Jio Financial Services emerged as the top gainer, followed by HDFC Life Insurance, Adani Enterprises, Reliance Industries and SBI Life Insurance. 

Reliance Industries and HDFC Bank also contributed significantly to the benchmark’s gains as foreign institutional investors continued to add Indian equities despite global uncertainty. Overseas investors have remained net buyers in recent sessions, lending support to domestic markets even as geopolitical risks persisted.  

On the losing side, Dr. Reddy’s Laboratories declined after concerns over delays in generic semaglutide supplies due to active pharmaceutical ingredient impurities weighed on sentiment.  

Eternal, Bharti Airtel, Nestle India and Sun Pharma also ended lower.  

The broad-based sectoral rally suggests investors have shifted their attention from geopolitical developments to corporate earnings, with market participants now awaiting results from Infosys, HCLTech, Wipro and other blue-chip companies to assess whether Friday’s rebound in technology stocks can be sustained. 

Source

•  NSE