Nifty, Sensex gain over 0.7% led by IT and banking; pharma lags

Mid-Market Snapshot

• Bias: positive
• Index Move: Nifty up 0.79% to 24,261.95, Sensex up 1.02% to 77,972.53
• Breadth: Positive
• Key Intraday Shift: IT and private bank indices lead gains; pharma and metal decline
• Main Driver: Ongoing Q1 FY27 earnings season with mixed results

What Is Driving The Move

• Earnings Season Momentum: Strong Q1 results from Jio Financial Services and Tech Mahindra boost sentiment, while Wipro and CEAT disappoint.
• Geopolitical Overhang: Escalating US-Iran tensions keep crude oil above $85/bbl, adding caution despite domestic earnings strength.

Participation And Market Structure

Market breadth is positive with broad-based participation. IT and banking sectors lead, while pharma and metal face selling pressure.

Sectors in Focus

• Nifty IT: Up 1.58% led by Tech Mahindra and HCLTech; Wipro's weak results cap gains.
• Nifty Pvt Bank: Up 1.37% ahead of Q1 earnings from major private banks; Kotak Mahindra Bank gains 2.6%.
• Nifty Pharma: Down 1.51% on US pricing pressure and higher logistics costs; Dr. Reddy's and Cipla decline.
• Nifty Metal: Down 0.78% on global demand concerns and commodity price volatility.

Stocks in Focus

• Tech Mahindra (TECHM: Tech Mahindra shares rose nearly 3% after Q1 net profit and revenue beat estimates, with EBIT margin improving to 14.4%.
• Wipro (WIPRO: Wipro shares fell nearly 2% after Q1 earnings missed margin estimates, with management citing wage hikes and lower profitability in new large deals.
• CEAT (CEATLTD: CEAT shares dropped over 9% after Q1 profitability fell sharply, with high raw material costs straining margins despite robust sales growth.
• Jio Financial Services (JIOFIN: Jio Financial Services shares surged over 5% after strong Q1 results, making it the top Nifty gainer.

Mid-Session Takeaway

Markets are trading higher with a positive bias, driven by strong earnings from select IT and financial stocks. However, geopolitical risks and FII selling keep gains in check.

Bottom Line

The earnings season remains the key catalyst. Investors should watch for further results from banks and IT majors, while monitoring crude oil and rupee movements.