Markets Bounce Back as IT Stocks Surge Global Sentiment Lifts Early Trade

Indian benchmark indices opened sharply higher on Monday, rebounding from last week’s volatility as IT stocks led a broad-based rally, supported by firm global cues. The rebound comes amid renewed optimism in global markets, driven by easing geopolitical concerns and expectations of accommodative monetary policies by major central banks.

At the opening bell, the Sensex jumped over 350 points, while the Nifty reclaimed key psychological levels, powered by heavy buying in large-cap technology counters. Market sentiment received a strong boost after U.S. and European markets ended the previous session on a positive note, buoyed by softer inflation data and signals that interest rates may remain steady in the near term.

IT giants including TCS, Infosys, HCLTech, Wipro, and Tech Mahindra were among the top gainers, with most stocks rising between 1–3% in early trade. Analysts attribute the surge to expectations of improving demand in the U.S. technology market and a weakening dollar, which typically benefits Indian IT exporters.

Broader market indices also mirrored the positive trend, with the Nifty Midcap and Smallcap indices opening in the green, indicating improved investor appetite across sectors. Banking, pharma, auto, and energy stocks also saw modest gains, while FMCG remained mixed due to concerns over rural demand pressures.

Global sentiment remained upbeat following reports that inflation in the U.S. had eased more than expected, strengthening hopes that the Federal Reserve may hold rates steady or explore cuts in the coming months. Asian markets followed suit, with key indices in Japan, South Korea, and Hong Kong trading higher in early hours.

On the domestic front, investors reacted positively to data showing resilience in India’s services and manufacturing sectors, further reinforcing confidence in the country’s economic outlook. Foreign institutional investors (FIIs), who had been net sellers recently, are expected to return to Indian markets if global volatility subsides.

However, analysts cautioned that despite Monday’s rally, markets may continue to witness fluctuations ahead of major macroeconomic announcements, including upcoming inflation numbers, corporate earnings, and global central bank meetings. They highlighted that while IT stocks have offered a strong cushion, sustained momentum will depend on sector-specific guidance and the stability of global demand.

Crude oil prices, which remained steady in early Asian trade, also supported investor sentiment. Lower commodity prices tend to ease inflationary pressures, creating a favorable environment for equity markets.

Overall, the early-morning trade reflects improving sentiment, but experts advise investors to remain selective and focus on sectors demonstrating consistent growth potential. As markets regain stability, IT and banking continue to be viewed as leading beneficiaries of the current global economic setup.