Sensex climbs over 500 points, Nifty nears 24,000 as financials, cyclicals lead early gains

Indian equity benchmarks opened firmly higher on Friday, tracking upbeat cues from strong earnings by Tata Consultancy Services, even as lingering geopolitical tensions in West Asia capped broader risk appetite.

The BSE Sensex rose 516.34 points, or 0.67 per cent, to 77,147.99 in early trade, after opening at 77,121.01. The index touched an intraday high of 77,121.01 and a low of 76,851.16.

The Nifty 50 climbed 172.30 points, or 0.72 per cent, to 23,947.40, inching closer to the psychologically important 24,000 mark. Market breadth remained strong, with 44 stocks advancing and just six declining.

Financials, cyclicals drive rally

Gains were led by banking and financial heavyweights, with Axis Bank rising nearly 2 per cent. Other lenders including ICICI Bank and State Bank of India also traded higher, lending support to the indices.

Among non-financials, cyclicals and infrastructure-linked names saw buying interest. Shares of Power Grid Corporation of India, NTPC and Larsen & Toubro advanced over 1 per cent each.

Metal stocks also gained ground, with Tata Steel up around 1.5 per cent, reflecting improving risk sentiment and stability in commodity prices.

Consumption and auto names such as Mahindra & Mahindra and Maruti Suzuki posted modest gains.

IT, pharma stocks weigh

Despite the positive start, IT stocks saw selling pressure. Shares of Infosys, Tata Consultancy Services, and Tech Mahindra declined up to nearly 2 per cent, even after TCS reported better-than-expected March-quarter earnings.

Pharmaceutical stocks also lagged, with Sun Pharmaceutical Industries emerging as one of the top losers, down over 3 per cent.

Earnings optimism offsets global uncertainty

Investor sentiment was supported by TCS’s quarterly performance, which showed a 9.7 per cent rise in revenue and a 12.2 per cent increase in net profit, signalling resilience in demand despite macroeconomic uncertainties.

Analysts said improving earnings visibility could act as a near-term catalyst for domestic equities, especially after a recent correction driven by geopolitical tensions linked to the West Asia conflict.

However, concerns over the durability of a ceasefire between the US and Iran, alongside continued Israeli military activity in Lebanon, are likely to keep investors cautious.

Flows, valuations in focus

Foreign portfolio investors remained net sellers in recent sessions, with outflows in April nearing $4.9 billion, reflecting global risk aversion.

Still, market participants noted that valuations have turned more attractive after the recent pullback, with the Nifty’s price-to-earnings ratio hovering around 20.89.

With benchmark indices up over 4.5 per cent so far this week, markets are on track to snap a six-week losing streak, provided global cues remain supportive and earnings momentum sustains.