Equity benchmarks closed marginally higher on Thursday, with technology stocks leading the rally after Infosys reported better-than-expected third-quarter results and upgraded its revenue growth outlook, injecting fresh optimism into a market that has been trading range-bound amid global uncertainties.

The BSE Sensex rose 187.64 points or 0.23 per cent to close at 83,570.35, while the Nifty gained 28.75 points or 0.11 per cent to settle at 25,694.35. However, both indices gave up significant intraday gains in the latter half of the session as profit-booking emerged at higher levels ahead of key earnings announcements from HDFC Bank and ICICI Bank scheduled for January 17.

The Nifty IT index surged 3.34 per cent, emerging as the top sectoral gainer. Infosys led the charge, jumping 5.58 per cent to close at ₹1,689.10, followed by Tech Mahindra, which gained 5.26 per cent to ₹1,672.00. “Indian equity markets ended marginally higher, supported by positive sentiment in IT & banking,” said Siddhartha Khemka, Head of Research, Wealth Management at Motilal Oswal Financial Services. “The Nifty IT index surged 3.3% after Infosys reported better-than-expected third-quarter financial year 2026 results and upgraded its revenue growth outlook.”

Other IT majors also witnessed strong buying, with Wipro advancing 2.54 per cent to ₹266.80, HCL Technologies rising 2.41 per cent to ₹1,696.50, and TCS gaining 2.34 per cent to ₹3,209.00. The sector’s outperformance came as investors bet on sustained demand for technology services.

Banking stocks provided additional support, with the Nifty Bank index climbing 0.86 per cent to 60,095.15, extending its rally for the fifth consecutive session. “Bank Nifty outperformed the broader market, led by strong gains in PSU banks,” noted analysts at Bajaj Broking. The Nifty PSU Bank index gained 1.2 per cent, while heavyweight private sector banks witnessed strong accumulation ahead of their quarterly results.

On the losing side, Eterna limited the biggest decliner, falling 3.76 per cent to ₹288.00, followed by Jio Financial Services, which dropped 3.15 per cent to ₹277.95. Cipla declined 2.54 per cent to ₹1,398.00, while Hindalco shed 2.44 per cent to ₹932.00, and Asian Paints fell 2.03 per cent to ₹2,756.70. The Nifty Pharma index declined 1.3 per cent, while the Nifty Metal index slipped 0.5 per cent due to profit-booking after recent gains.

Market breadth remained mixed, with 1,849 stocks advancing against 2,395 declining on the BSE, while 150 remained unchanged. Notably, 260 stocks hit 52-week lows compared to just 84 touching 52-week highs, indicating continued pressure in the broader market. The Nifty Smallcap 100 index underperformed, declining 0.28 per cent to 17,362.30, while the Nifty Midcap 100 gained 0.16 per cent to 59,867.80.

“Sentiment was also supported by comments from the Commerce Secretary on January 15 that the first tranche of the India–United States trade deal is close to finalisation,” Khemka added. However, currency markets remained under pressure. “Indian rupee’s underperformance relative to its Asian peers stems from a ‘perfect storm’ of high dollar demand and a retreating tide of foreign capital,” said Dilip Parmar, Research Analyst at HDFC Securities. “Technical weakness was further intensified by fixing-related dollar bids linked to the RBI’s recent FX swap as forex markets were closed on Thursday.”

“The session witnessed the index rebound from its intraday lows and hold on to gains for most of the day, supported by broad-based strength across key sectors such as IT, banking, and financials,” said Hitesh Tailor, Technical Research Analyst at Choice Broking.

“Going ahead, for Nifty, the 100-day EMA zone of 25,600-25,550 will act as an immediate support,” said Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities. “On the upside, the 50-day EMA zone of 25,850-25,900, which also coincides with the rising trendline zone, will act as an as immediate resistance.”

Markets are expected to remain volatile in the near term, with earnings from major banking heavyweights and global developments, particularly around US-India trade negotiations and geopolitical tensions, likely to influence sentiment in the coming sessions.

Published on January 16, 2026