Equity benchmark indices started the week on a strong note. Sensex climbed 407 points to 81,714, while Nifty advanced 121 points to 24,991, tracking upbeat global markets and renewed buying in IT stocks.
IT Stocks Lead the Rally
Technology stocks were the highlight of the session. Infosys, TCS, HCL Tech, Wipro, and Tech Mahindra surged up to 4%, making IT the top-performing sector. The Nifty IT index jumped over 2%, boosted further by JPMorgan’s upgrade of TCS to ‘Overweight’ with a price target of ₹3,800.
Also Read: TCS Shares Gain After JPMorgan Upgrade
Key Factors Driving the Market
Fed Rate Cut Hopes – US Fed Chair Jerome Powell hinted at possible “policy adjustments,” signaling a strong chance of a September rate cut. Traders are now pricing in an 84% probability of this move.
Global Market Support – Asian markets traded higher, while Wall Street closed strong with Dow up 1.89%, Nasdaq 1.88%, and S&P 500 1.52%.
Rupee Strength – The rupee appreciated 18 paise to 87.34 per US dollar, tracking positive equities.
Market Insights & Update
Experts believe Powell’s dovish tone is a big sentiment booster, especially for rate-sensitive and IT stocks. However, investors remain cautious ahead of the August 27 US tariff deadline and the Fed’s September 17 policy meeting.
Key Insight: The rally highlights strong global and domestic optimism, but volatility may persist until clarity on US tariffs and Fed action emerges.
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