TCS Q1 beat fuels market rally, lifts Sensex, Nifty and m-cap to new records

Market capitalisation of all BSE-listed companies also hit all-time highs. It increased by Rs 1.18 lakh crore to Rs 452.36 lakh crore.

TCS, India's top IT services company, rose 6.7%, after beating revenue expectations. The gains led to a 4.25% jump in the US rate-sensitive IT index.

IT stocks were also buoyed by rising hopes of a US rate cut in September after consumer prices unexpectedly fell in June.

Apart from TCS, , , , , and were also among the Sensex gainers. On the flip side, , , , Titan, and closed lower.

Sector-wise, Nifty IT, FMCG, and oil & gas closed with gains, while Nifty Auto, metal, PSU bank, realty, and consumer durables closed with losses.

India's retail inflation data for June is due after market hours later in the day.

Inflation is expected to be close to 5%, in line with the Reserve Bank of India's expectations, but still above its 4% target, central bank chief Shaktikanta Das told local media on Thursday.

The market breadth was skewed in favour of the bears. About 1,692 stocks gained, 2,239 declined, and 105 remained unchanged on the BSE.

Expert Views

"Multiple tailwinds led the market to come out of the range bound trajectory. The strong result from the IT bellwether and a drop in US inflation to a one-year low added optimism to the market," said Vinod Nair, Head of Research at .

"We expect stock-specific moves to gain traction due to the ongoing earnings season and upcoming Budget; indeed, IT will be in the limelight due to the good start to the earnings and outlook," Nair said.

Global Markets

Upbeat earnings and US rate cut hopes helped boost the mood in equity markets on Friday, although skittishness prevailed in forex markets a day after Tokyo was believed to have stepped in to prop up a weak yen.

US stock futures were mixed , while Europe's STOXX 600 index rose to a one-month peak and London's FTSE-100 stock index gained 0.4%.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.1%, while Japan's Nikkei fell over 2%, dragged down by tech stocks.

Oil Rises

Oil prices rose on Friday amid signs of easing inflationary pressures in the United States, the world's biggest oil consumer, with Brent crude peaking above $86 though it was still set for a weekly decline.

Brent crude futures rose 72 cents, or 0.8%, to $86.12 a barrel. U.S. West Texas Intermediate crude futures climbed 85 cents, or 1%, to $83.47 a barrel. Both contracts gained in the prior two sessions.

Rupee Ends Higher

The Indian rupee edged higher on Friday, aided by a broadly weaker dollar, although dollar demand from importers capped further gains in the local currency.

The rupee closed at 83.5350 against the US dollar, up from its close at 83.56 in the previous session. The local unit was largely flat week-on-week.

(With inputs from agencies)