Semiconductor boom powers Wall-Street rally on TSMC's record AI earnings, Infy results to enthuse IT bulls

Wall Street’s early strength reflected positive earnings from Taiwan Semiconductor – TSMC, which surged 4% after reporting record quarterly results. The chipmaker raised its 2026 capital expenditure forecast to $52-56 billion, reinforcing confidence in AI infrastructure demand and guiding to 30% growth in 2026.

Despite strong performance for most of Thursday’s session, stocks retreated somewhat late in the day but remained mostly higher. Investors are monitoring chip stocks following a U.S.-Taiwan trade agreement in which Taiwanese semiconductor companies committed at least $250 billion to U.S. production capacity in exchange for lower reciprocal tariffs.

Goldman Sachs beat fourth-quarter profit expectations, rising over four per cent. The bank posted record equity trading revenue of $4.31 billion, up 25 per cent year over year, as dealmaking accelerated at year-end.

Market sentiment also benefited from a Labour Department report showing that first-time unemployment claims unexpectedly declined in the week ending January 10.

Crude futures fell more than 4%—the steepest drop since June— with West Texas Intermediate settling above $59 per barrel after President Trump signalled reduced tensions with Iran, shifting focus to supply concerns.

Indian markets ended lower in a volatile session on January 14 as weakness in auto, IT and realty stocks offset strength in metal, PSU banking and oil & gas. Indian equity markets ended the day on January 14 in negative territory amid heightened volatility, as weakness across the automotive, information technology, and real estate sectors offset gains in metals, public sector banking, and oil & gas. The Nifty Midcap and Small-cap indices defied the broader trend, advancing 0.29% and 0.67% respectively. Nevertheless, overall market breadth remained subdued for the fifth consecutive session.

Infosys delivered a robust Q3 FY26 performance, securing stellar large deal wins totalling $4.8 billion, with 57% attributed to net new business. The company revised its FY26 revenue guidance upward to 3.0%-3.5% in constant currency terms, while maintaining strong adjusted operating margins at 21.2% and generating impressive free cash flow of $965 million.

Among the notable corporations scheduled to release their third quarter financial results today are Reliance Industries, Wipro, Tata Technologies, and JSW Infrastructure. The Nifty has settled into a consolidation range between 25,473 and 25,900. A decisive breach on either side will likely dictate the subsequent directional trajectory

Indian markets are positioned to open modestly higher today on positive global cues.

Disclaimer : This content is only for informational purpose. It does not make any recommendation to act or invest.

Source: HDFC Securities Prime Research