The war between the US and Iran is intensifying. Despite this, Indian benchmark indices continued to surge. On July 10, the stock market extended its gains, with the Sensex climbing over 800 points and the Nifty crossing the 24,200 mark in early trade. The rally was driven by multiple factors, including the strong performance of IT stocks. Here are the reasons why the indices surged on Friday.

TCS earnings trigger strong rally in IT stocks

IT stocks emerged as the biggest drivers of the market after TCS reported stronger than expected June quarter earnings. The company posted growth in both revenue and profit, announced an interim dividend of Rs 12 per share and reported a healthy order pipeline led by artificial intelligence projects. TCS also recorded its highest quarterly hiring in more than a year, signalling confidence in future business demand. The upbeat results lifted the entire IT pack, with Tech Mahindra, Infosys, HCLTech, Coforge and other technology stocks posting strong gains.

Crude oil prices stabilise

Markets also found support from stable crude oil prices even as tensions between the US and Iran intensified. Brent crude continued to trade below USD 80 a barrel, easing concerns over India’s import costs and inflation outlook. Analysts said investors are closely tracking developments in West Asia, but the absence of a sharp spike in oil prices has prevented panic in domestic equities. They believe corporate earnings will remain the key factor driving market direction in the near term.

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Broad based buying across sectors

The rally was broad based, with most sectoral indices trading in positive territory. Apart from IT, banking, financial services, auto, FMCG, media and realty stocks also attracted buying interest. Midcap and smallcap shares moved higher alongside benchmark indices, while India VIX declined, indicating easing market volatility. Market participants will now watch upcoming June quarter earnings and global geopolitical developments to assess whether the current rally can sustain.

Positive global market cues

Technology driven rally on Wall Street provided strong positive cues across global markets, triggering a robust surge in Asian equities on July 10. Driven by high investor sentiment and a sharp rebound in semiconductor stocks, regional markets advanced significantly. Japan’s Nikkei 225 snapped its recent losing streak to climb approximately 1.5%, while South Korea’s Kospi led the regional gains with a stellar 2.5% jump as key tech heavyweights rallied. Bolstered by this optimistic international momentum, the domestic market mirrored the global trend, tracking the upward trajectory to lock in solid gains by the final close of the day’s trading.

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