Nifty Rallies on IT Surge, Nvidia Earnings Boost AI Optimism
Indian benchmarks rose Friday as IT stocks surged on Nvidia's blowout earnings, lifting sentiment. Foreign investors remained sellers, and all eyes turn to Fed Chair Warsh's Jackson Hole speech for rate direction.
Indian equity benchmarks rebounded Friday, snapping two days of losses, as a rally in blue-chip IT stocks and supportive global cues drove buying. The BSE Sensex climbed 245.56 points to 77,191.80, while the NSE Nifty rose 54.20 points to 24,147.50.
Tata Consultancy Services, Tech Mahindra, Infosys, and HCL Tech led the gains on the Sensex. UltraTech Cement, ICICI Bank, Mahindra & Mahindra, and State Bank of India lagged.
The tech advance was fueled by Nvidia's blowout quarterly results, which triggered a broad rally across AI-linked names in the U.S. and helped the Nasdaq close 1.57% higher. “Global cues are more supportive than they have been at any point this week,” said Hariselvan Radhakrishnan, founder and CEO of HST Wealth, a research analyst firm.
Ponmudi R, CEO of Enrich Money, an online trading and wealth-tech firm, said the tech sentiment was lifted by Nvidia's results. He added that attention now turns to Fed Chair Kevin Warsh's first Jackson Hole keynote, the week's most closely watched macro event.
In Asian markets, Japan's Nikkei 225, Shanghai's SSE Composite, and Hong Kong's Hang Seng Index traded higher. South Korea's Kospi slipped. Brent crude, the global oil benchmark, traded 0.56% lower at $89.20 per barrel, a tailwind for India's import-dependent economy.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 298.26 crore on Thursday, exchange data showed.
The Nvidia results underscore strong demand for AI infrastructure, a positive signal for Indian IT firms that serve as key partners to U.S. technology companies. The decline in crude oil eases pressure on the current account deficit. Warsh's Jackson Hole speech Friday could set the tone for Fed rate expectations, which influence capital flows to emerging markets like India.
In a separate development, Wipro announced plans to train 10,000 employees as AI specialists for Google Gemini solutions, the latest example of the sector's growing AI focus.
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