Indian Equities Rally on Geopolitical De-escalation; AI Fears Weigh on IT Sector

Indian equity benchmarks opened higher on Friday, driven by a wave of optimism regarding global geopolitical stability. The BSE Sensex gained 569 points, or 0.7%, to reach 77,200, while the NSE Nifty rose 0.8% to 23,975 in early trading. The rally was primarily fueled by hopes that a ceasefire between the United States and Iran would hold, coupled with a rare 32-hour truce between Russia and Ukraine for Orthodox Easter. This reduction in geopolitical tension provided a tailwind for a variety of sectors, particularly banking and automotive. Top performers included Axis Bank, ICICI Bank, and Mahindra & Mahindra, all seeing gains between 2% and 4%. Metal stocks, including Tata Steel and JSW Steel, also traded up approximately 1%. Corporate activity added to the momentum, with HDFC Life Insurance rising on fundraising reports and Prestige Estates advancing 1.6% following a partnership acquisition in Aaramnagar Realty LLP. In contrast, the IT sector struggled. Tata Consultancy Services (TCS) fell 2.8% despite reporting solid fourth-quarter results. Peers such as Infosys and HCL Technologies also declined 2-3%, as a recent update from AI firm Anthropic reignited fears that generative AI could disrupt traditional outsourcing models. Healthcare also saw volatility, with Sun Pharma dropping 3.6% following reports that the company is nearing a $12 billion acquisition of Organon & Co.