Post-Diwali stock rally: Decoding TCS, Infosys share performance

Fresh out of back-to-back market holidays and the auspicious Muhurat special trading session, Indian bourses opened on Thursday with a massive early surge.

BSE benchmark index Sensex jumped more than 846 points to hit a new 52-week high of 85,272.40, while the NSE Nifty 50 gained over 231 points to hit 26,099.70—a new 52-week high—in the first hour of the opening bell.

IT stocks led from the front, capitalising on the growing positive momentum from the market buzz surrounding the US-India trade deal. Infosys gained more than 4.2 per cent, leading both indices, while TCS rose by around 2.5 per cent.

Stocks and the India-US deal

Both Infosys and TCS have businesses connecting Trump's America and Modi's India, employing assets and employees in both nations and catering to a wide variety of clients. The implications of a good trade deal would help the IT services industry in general.

Other gainers in the Sensex were HCL Tech, Axis Bank, Tech Mahindra, and Tata Steel.

The mounting optimism around the possibility of a mended India-US relationship led to a fresh inflow of foreign funds and an impressive demand for tech stocks.

Moreover, the news of record retail activity during the festive season is expected to lift corporate earnings for the quarter, adding to the overall rally.

During the brief Muhurat trading window, foreign institutional investors (FIIs) bought Rs 96.72 crore worth of equities on Tuesday. During the special trading, Sensex gained 0.07 per cent to settle at 84,426.34 while the Nifty settled 0.10 per cent higher at 25,868.60.

Regular trading was closed on Tuesday for Diwali and on Wednesday for Diwali Balipratipada.

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