Sensex Crosses 78,000 as IT Rally Outpaces Broader Market

Domestic equity benchmarks rose Friday, with the BSE Sensex adding 534 points to 78,036 and the Nifty 50 gaining 168 points to 24,344. The Nifty IT index climbed 3% for a second straight session, extending gains from earlier rallies fuelled by easing geopolitical tensions.

Broader markets lagged. The Nifty Midcap 100 rose 0.04% and the Smallcap 100 added 0.23%. The PSU Bank index fell more than 1%. Consumer durables and auto stocks also traded lower.

HCL Technologies and Tech Mahindra topped the Nifty 50 gainers. Max Healthcare and Eternal also advanced. On the losing side, State Bank of India, InterGlobe Aviation, Kotak Mahindra Bank, and Trent fell.

Market breadth was positive: 1,843 of 3,292 stocks advanced, against 1,345 declines. 130 stocks hit 52-week highs, and 18 touched lows. 88 stocks locked upper circuit, while 56 hit lower circuit.

Midcap decliners included GVT&D, Hitachi Energy, PB Fintech, and Tube Investments of India, down 4-9%. On the upside, Mahindra & Mahindra Financial Services, National Aluminium Company, Aurobindo Pharma, and 360 One WAM gained up to 4%.

Smallcap gainers included Zensar Technologies, Nuvama Wealth Management, PPL Pharma, Kaynes Technology, and HSCL, rising 3-11%. Welspun Corp, Force Motors, Jyoti CNC Automation, and Star Health and Allied Insurance fell 2-5%.

The rally followed a softer-than-expected US jobs report. The data eased concerns over near-term Federal Reserve rate hikes and boosted demand for emerging-market assets. The IT sector, which depends on US corporate spending, led the move.

The Nifty IT index rose 300 basis points. The midcap index added 4 basis points. The US consumer price index is due Wednesday.