Sensex, Nifty hit closing peaks as IT stocks rally; Wipro surges 6%

Benchmark stock market indices achieved back-to-back record highs, fuelled by the strong performance of information technology (IT) stocks, particularly HCLTech and Wipro.

At the closing bell, the S&P BSE Sensex rose 759.49 points to 73,327.94, while the NSE Nifty50 gained 202.90 points to 22,097.45. During the trading session, the Sensex hit an all-time high of 73,402.16, while the Nifty50 rose to 22,115.55.

Broader market indices also ended the session on a positive note, propelled by strong investor optimism, even as volatility spiked over 5 per cent.

The Nifty IT surged 3.85 per cent, reaching its highest level in two years and closing 1.86 per cent higher.

In total, the index has surged 7.10 per cent over the last two sessions, followed better-than-expected third-quarter results from the top four IT companies. Previously pessimistic sentiments on the sector were replaced with optimism due to the steady performance reported.

Analysts had been relatively negative on IT stocks prior to the results, with more than a quarter suggesting a "sell" or "strong sell" rating, the highest among all sectors.

The positive results from Wipro and HCLTech, with shares jumping 6.26 per cent and 3.08 per cent, respectively, contributed to the overall market surge.

In individual stock movements, Oil and Natural Gas Corp (ONGC) rose by 4.5 per cent, leading the energy and oil and gas sectors. This increase followed reports of ONGC making two natural gas discoveries in the Mahanadi basin deepwater block in the Bay of Bengal.

Banking stocks also played a role in the market uptick, with the Nifty Bank index rising by about 1 per cent, ahead of HDFC Bank's quarterly results scheduled for Tuesday.

Despite the positive outlook for domestic markets, experts anticipate potential consolidation, influenced by earnings reports from key constituents such as HDFC Bank in the coming weeks.