Stock Market Steady; Buying Activity Lifts Investor Sentiment

The Indian benchmark indices surged in today’s afternoon trading session as various sectors witnessed heightened buying. All sectoral indices were trading in red except Nifty Pharma. Meanwhile, most gains came from technology stocks.

As of 12:00 pm, Sensex was up by 704.36 points, or 0.87% at 81,656.35, while Nifty surged by 224.40 points, or 0.91% at 24,834.10. Close to around 1,980 shares advanced, while 1,288 declined. 141 remaining unchanged.

IT stocks rallied as tech companies shrugged off the concerns pertaining to slowing US economy and fiscal deficit. Analysts at Bernstein said that IT companies are set to report strong earnings in FY26 compared to FY25.

However, Nifty Pharma index traded with losses, buoyed by Sun Pharma’s guidance for FY26. Nuvama Institutional Equities said that delay in the launch of Leqselvi, possible changes in US policies affecting branded drugs, and an increase in tax rates will pose a challenge in the short-term. Assigning a target price of ₹1,830 per share, the brokerage has maintained a “hold” rating on Sun Pharma.

Elara Securities analysts noted that market fluctuations observed between September and May are different from what they were before that volatile period. The brokerage explained that declines were broad-based and driven by high valuations, however, rebound was rotational, buoyed by earnings growth.

They further commented, “With no visible signs of speculative excess and a more balanced sector leadership, the market looks structurally stronger and is positioned for a steady, low-volatility climb—driven by value and quality—unless new valuation froth starts building up.”

Commenting on technical factors, ICICI Securities analysts are of the view that Nifty could move towards the 25,500 level, with key support placed around 24,200.