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Sensex, Nifty Edge Higher as IT and Banking Stocks Lead Gains

Indian benchmark indices closed the week marginally higher, with the Sensex adding 187 points and the Nifty advancing 28 points. The rally was primarily driven by IT stocks following strong quarterly results and banking stocks on improved asset quality. However, the indices surrendered most intra-day gains due to profit-taking at higher levels. Analysts suggest stock-specific action may continue based on Q3 results, though foreign institutional selling remains a near-term concern.

Key Points: Sensex, Nifty Close Week Higher on IT, Banking Strength

  • Sensex gains 187 points
  • Nifty IT top sectoral gainer
  • Banking index nears record high
  • Broader markets underperform
2 min read

Sensex, Nifty close week with gains over positive cues

Indian equity markets ended the week with gains, led by IT and banking stocks, though broader markets saw profit-taking at elevated levels.

"better-than-expected results in Q3 FY26 could trigger stock-specific action - Analysts"

Mumbai, Jan 16

The Indian equity markets ended marginally higher on Friday, before surrendering most of their intra-day gains in the afternoon session.

At the closing bell, the Sensex added 187 points, or 0.23 per cent to settle at 83,570. The Nifty advanced 28 points, or 0.11 per cent, to close at 25,694.

The broader markets performed in line with the benchmark indices, as Nifty Midcap 100 index lost 0.07 per cent, while the NSE Smallcap 100 declined 0.34 per cent.

The benchmark Nifty opened on a muted note at 25,696, advanced to an intra-day high of 25,873 driven by a rally in IT stocks amid stronger-than-expected December quarter results. Nifty, however failed to sustain higher levels and eventually slipped to an intraday low of 25,662, reflecting profit-taking at elevated levels.

On the sectoral front, IT, realty and banking stocks outperformed. Nifty IT was the top gainer, up 3.34 per cent. Nifty Pharma and consumer durables slipped 1.30 per cent and 1.15 per cent, respectively.

The Nifty Bank index also surged around 0.84 per cent, inching up to 60,082 closer to setting a new record high mark.

Analysts said the IT sector outperformed, supported by an upward revision in revenue growth projections from a leading industry bellwether, coupled with expectations of increased technology spending.

Meanwhile, investor focus also shifted to banking counters, as early results reflected notable improvements in asset quality and margin profiles, further strengthening sentiment in the sector.

In the derivatives segment, market breadth remained marginally positive, with 131 stocks advancing against 82 declines.

Analysts predict that better-than-expected results in Q3 FY26 could trigger stock-specific action but foreign institutional selling is expected to continue in the near term.

- IANS

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Reader Comments

S
Sarah B
Interesting to see the profit-taking in the afternoon. It shows investors are still cautious. The smallcap decline is a bit worrying for retail investors like me.
V
Vikram M
Nifty Bank almost at a record high! This is excellent news. Strong banks mean a strong economy. Hopefully, this translates into better loan rates for home buyers soon.
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Rohit P
Marginal gains are better than losses, but honestly, with all the positive global cues, I expected a bigger rally. The FII selling pressure is real. Need domestic institutions to step up more.
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Priya S
Pharma and consumer durables down again? Seems like the rally is very narrow, only in a few sectors. My portfolio is diversified, so the overall impact was neutral today. Waiting for broader participation.
M
Michael C
The IT sector rebound on revised projections is a key takeaway. It suggests global tech spending might be more resilient than feared. Good for India's export earnings.

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