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Sensex and Nifty rose as Infosys raised its revenue forecast, boosting IT stocks; Key points for investors
Know Key Drivers Behind The Stock Market’s Rise Today.
Why Is Market Rising Today? Indian equity benchmarks traded higher on Friday, supported by a strong rally in IT stocks after Infosys delivered better-than-expected quarterly results and raised its full-year revenue growth guidance.
At around 10:37 am, the Sensex was up 716 points, or 0.86 per cent, at 84,098.59, while the Nifty50 gained 200 points to trade at 25,866.
On the 30-share Sensex, Infosys, Tech Mahindra, Mahindra & Mahindra, Kotak Mahindra Bank and Power Grid led the gains, rising between 1 per cent and 5 per cent.
Why Is The Indian Stock Market Rising Today?
1) Buying in IT stocks
Infosys surged as much as 5 per cent, lifting the Nifty IT index by about 2 per cent after the company surprised investors by raising its FY26 revenue outlook. The rally in Infosys boosted sentiment across the sector, with all 10 constituents of the Nifty IT index trading in the green.
The Nifty IT index emerged as the top sectoral gainer, rising nearly 3 per cent to 38,851.85.
“Markets have received a boost from Infosys’ results and commentary. With IT company valuations at attractive levels, there is buying interest and short-covering in the sector,” Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, told Reuters.
Analysts said Infosys is well positioned to gain market share through stronger AI partnerships and deeper client engagement.
2) Positive global cues
Global market cues also supported domestic equities. In Asia, South Korea’s Kospi traded higher. US markets closed in the green overnight, led by technology and banking stocks. The Dow Jones rose 0.6 per cent, while the S&P 500 and Nasdaq advanced 0.26 per cent and 0.25 per cent, respectively.
Sentiment was further aided by encouraging labour data, with weekly jobless claims for the week ended January 10 coming in at 198,000, well below economists’ expectations of 215,000.
3) Crude oil prices ease
Lower crude oil prices helped improve market sentiment. Brent crude slipped 0.24 per cent to USD 63.61 per barrel. Falling oil prices ease inflationary pressures and reduce India’s import bill, which is positive for equities.
Oil prices had settled about 4 per cent lower on Thursday amid easing concerns over potential US military action against Iran and supply disruptions.
4) India-US trade deal hopes
Investor sentiment was also lifted by hopes of progress on an India-US trade agreement. Commerce Secretary Rajesh Agrawal said the first tranche of the proposed deal, aimed at reducing reciprocal tariffs on Indian exports, was close to finalisation, although no timeline was committed.
He added that negotiating teams from both sides remain in continuous talks following a virtual meeting between Commerce Minister Piyush Goyal and the US Trade Representative last month.
5) Buying in banking stocks
Heavy buying was seen in leading banking stocks ahead of the December quarter results of HDFC Bank, ICICI Bank, IDBI Bank and Yes Bank, which are scheduled to be announced on January 17.
6) Decline in volatility
The India VIX, a key measure of market volatility, fell 1.24 per cent to 11.18. A lower VIX signals reduced investor fear and typically supports higher risk-taking in equities.
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January 16, 2026, 11:03 IST
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