Share markets opened sharply higher on Friday, snapping their recent losing streak, as strong buying in IT stocks—led by Infosys—boosted investor sentiment. The rally followed better-than-expected Q3 FY26 results from Infosys and an upgrade to its full-year revenue guidance.
At around 10:30 am, the S&P BSE Sensex was up 709.60 points at 84,092.31, while the NSE Nifty50 gained 195.50 points to trade at 25,861.10. Both benchmark indices were up nearly 1% in early trade, supported by gains in IT stocks along with select banking and auto counters after several sessions of losses.
On Wednesday, India’s second-largest IT services company surprised the Street by raising its full-year revenue growth forecast. Infosys now expects revenue to grow 3%–3.5% in FY26, compared with its earlier guidance of 2%–3%.
The company said demand remains resilient, citing steady technology spending by clients and renewed momentum in its key financial services business. This upbeat outlook helped restore confidence in the IT sector, which has been under pressure in recent months amid global uncertainty.
Infosys’ US-listed shares reacted sharply to the results. The company’s American Depository Receipts jumped 10.21% in New York on January 14, after having already surged 10.5% on Wednesday following the earnings announcement.
While Infosys reported mixed quarterly numbers—with net profit falling 2.2% to Rs 6,654 crore—investors focused on the improved revenue outlook and strong deal momentum.
Revenue from the financial services segment, which accounts for nearly one-third of total revenue, grew 3.9% during the quarter. The communications segment emerged as the fastest-growing business, rising 9.9%.
Infosys also highlighted several AI-led deal wins in 2025, including projects with Adobe and Germany’s Siemens AG, further adding to the positive sentiment around the stock.
The strong performance of Infosys lifted the entire IT pack. On the Sensex, Infosys was the top gainer, rising 4.71%, followed by Tech Mahindra, which advanced 2.33%. HCL Technologies gained 1.16%, while other IT majors also traded higher.
The Nifty IT index jumped over 2% in early trade, with all its constituents in the green. Infosys led the index with a gain of 4.76%, followed by Mphasis (up 4.47%), Wipro (up 3.19%), LTIMindtree (up 2.91%), Oracle Financial Services Software (up 2.82%) and Coforge (up 2.46%). Tech Mahindra rose 2.36%, TCS gained 2.21%, HCLTech advanced 1.96% and Persistent Systems added 1.87%.
Beyond IT, select heavyweights also supported the rally. Mahindra & Mahindra rose 1.20%, aided by strength in auto stocks, while banking and financial stocks traded modestly higher.
Among sectoral indices, Nifty IT was the top performer, rising 2.64%. Nifty Realty gained 1.78% and Nifty PSU Bank advanced 1.24%. Nifty FMCG rose 0.35%, Nifty Auto added 0.32% and Nifty Financial Services 25/50 climbed 0.26%.
Other sectors also saw gains, with Nifty Pharma up 0.49%, Nifty Metal higher by 0.27%, Nifty Private Bank gaining 0.46% and Nifty Oil & Gas rising 0.61%. Nifty Consumer Durables was largely flat, edging up just 0.01%.
However, not all sectors participated in the rally. Nifty Media slipped 0.46%, while the Nifty Healthcare Index fell 0.48%, making them the key laggards in early trade.
Overall, sentiment on Dalal Street improved after a weak run in recent sessions. Strong cues from Infosys helped ease concerns around demand in the IT sector and lifted broader market confidence.
Investors will now track further quarterly earnings announcements and global market developments. For now, Infosys’ results and upgraded outlook have provided the market with a strong trigger to end the week on a positive note.
