IT stocks power Nifty out of slump; Jackson Hole in focus

The Nifty IT index led sectoral gains, surging 3.5 per cent, with TCS, Tech Mahindra, and Infosys among the top Nifty 50 gainers

Benchmarks ended the week on a positive note Friday, snapping a two-session losing streak, as a global technology rally, sparked by Nvidia’s blowout quarterly results and upbeat revenue outlook, sent domestic IT stocks surging, masking an otherwise cautious and range-bound session.

“…IT emerging as the top outperformer, tracking global technology gains after Nvidia’s strong quarterly results and upbeat revenue outlook,” said Ajit Mishra, SVP Research, Religare Broking. “…prevailing geopolitical uncertainty, with focus now shifting to Federal Reserve Chair Kevin Warsh’s remarks at the Jackson Hole symposium.”

The Nifty 50 closed at 24,175, up 84 points or 0.35 per cent, while the Sensex settled at 77,264, gaining 0.43 per cent. The Nifty IT index led sectoral gains, surging 3.5 per cent, with TCS, Tech Mahindra, and Infosys among the top Nifty 50 gainers. Metals and pharma also ended in the green. FMCG, auto, and energy faced selling pressure and closed in the red. Bank Nifty ended nearly flat, slipping 0.02 per cent to 57,496.

Selective gains

The session’s advance was largely sector-specific. Broader markets tracked the benchmark modestly, with Nifty Midcap 100 edging up 0.05 per cent and Nifty Smallcap 100 gaining 0.20 per cent, the latter continuing to trade near all-time highs. The advance-decline ratio improved to 1.25, though within the Nifty 500 universe, 286 stocks ended in the red against 207 in the green. NSE cash turnover slipped 4 per cent from the previous session. For the week, Nifty fell 0.3 per cent, marking its third straight weekly decline.

Sentiment also drew support from a pause in West Asia tensions and a rebound in FII inflows during the month. Ankur Punj, Managing Director, Equirus Wealth, noted that investors have been “steadily increasing exposure to equity assets amid rebound in FII inflows.”

Growth eases

On the macro data front, India’s Index of Industrial Production grew 6.7 per cent year-on-year in July 2026, easing from an upward-revised 8.8 per cent in June. “…the deceleration was broad-based and was partly driven by an adverse base,” said Rahul Agrawal, Principal Economist, ICRA. Manufacturing output growth slowed to 7.3 per cent from 9.5 per cent, though capital goods expanded in double digits for the fourth consecutive month, and consumer durables output surged 10.5 per cent.

The rupee strengthened to 85.36 against the dollar, gaining around 0.18 per cent, supported by crude oil facing resistance below $90 per barrel and the dollar index holding near 99. “…With West Asia supply routes yet to see any major disruption, pressure on crude remains contained,” said Jateen Trivedi, VP Research Analyst, LKP Securities, pegging the near-term range at 85.00–85.85.

Gold had a volatile week, with MCX Gold pulling back from ₹1,62,500 to around ₹1,59,000, declining nearly 2 per cent as the dollar index regained strength above 99.15. Trivedi sees the near-term range at ₹1,58,000–1,61,500, with markets watching Kevin Warsh’s Jackson Hole speech for cues on the Fed’s rate trajectory.

Looking ahead, all eyes will be on Warsh’s address at the Jackson Hole symposium over the weekend. Technically, Nifty remains below its 20-day and 50-day EMAs, keeping near-term structure cautious. A move above 24,300–24,400 could signal recovery, while a breach below the 24,000-23,800 zone, a confluence of trendline support, a prior gap area, and a key Fibonacci retracement, would indicate further weakness. For Friday’s rebound to extend, analysts say participation from banking and other heavyweight sectors will be essential alongside technology.

Published on August 28, 2026