Last Updated on May 14, 2026 7:44 pm by BIZNAMA NEWS
Markets Extend Rally as Banking, Telecom Stocks Shine; IT Shares Remain Under Pressure
By Our Business Correspondent
Domestic equity benchmarks ended sharply higher on Thursday, extending gains for a second consecutive session amid encouraging global cues, easing volatility and renewed optimism surrounding ongoing trade discussions between the United States and China. Strong buying in banking, telecom, metal and pharma counters, coupled with supportive quarterly earnings, lifted overall market sentiment despite continued weakness in information technology stocks.
The benchmark indices recovered strongly after witnessing some volatility during intra-day trade. The 50-share NIFTY 50 opened firm at 23,530.25 and briefly slipped into negative territory during morning trade, touching an intraday low of 23,426.55. However, sustained buying in heavyweight banking and telecom stocks helped the index rebound sharply in the second half of the session. The Nifty later climbed to an intraday high of 23,777.20 before settling near the day’s peak.
The BSE Sensex surged 789.74 points, or 1.06 per cent, to close at 75,398.72, while the Nifty 50 advanced 277 points, or 1.18 per cent, to end at 23,689.60. Over the past two trading sessions, the Sensex has gained more than 1.1 per cent, while the Nifty has risen over 1.3 per cent.
Market participants said investor confidence improved after reports suggested progress in the ongoing talks between U.S. President Donald Trump and Chinese President Xi Jinping during their Beijing summit. Hopes of easing trade tensions between the world’s two largest economies boosted risk appetite across global equity markets.
Back home, banking and telecom stocks led the rally. Shares of Bharti Airtel jumped over 5 per cent after the telecom major posted a strong rise in quarterly profit and revenue. HDFC Bank and ICICI Bank also contributed significantly to the benchmark gains amid fresh institutional buying.
Sectorally, almost all major indices on the NSE ended in positive territory, with the exception of the IT pack. The Nifty IT index declined nearly 2 per cent and has now fallen close to 7 per cent over the last four sessions. Investor sentiment in technology stocks remained weak amid concerns over slowing global technology spending and rising disruption from artificial intelligence-driven enterprise solutions.
Major IT counters such as Infosys, Tech Mahindra, HCLTech and Tata Consultancy Services ended lower, while Persistent Systems and LTIMindtree emerged among the biggest losers in the sector.
Broader markets, however, underperformed the frontline indices. The BSE MidCap index rose 0.95 per cent, while the SmallCap index posted only marginal gains, reflecting cautious participation in the wider market. Market breadth remained broadly positive, with advancing shares marginally outnumbering declining stocks on the BSE.
Meanwhile, volatility eased further during the session. India VIX, often referred to as the market’s “fear gauge”, declined over 4 per cent to 18.61, indicating improving investor confidence.
On the macroeconomic front, investors remained watchful after India’s wholesale inflation accelerated sharply in April. Wholesale prices rose 8.3 per cent year-on-year, marking the fastest pace of increase since October 2022. Analysts attributed the surge primarily to higher fuel prices amid the ongoing Middle East crisis, along with rising food and manufacturing costs.
In the currency market, the rupee weakened further against the U.S. dollar and touched a fresh record low during the session before recovering partially. Bond yields eased marginally, while global crude oil prices remained relatively stable despite geopolitical concerns.
Global markets also offered strong support. European shares traded higher after reports indicated progress in U.S.-China trade discussions. Asian markets ended mixed, while U.S. futures pointed to a firm opening on Wall Street later in the day.
Among individual stocks, NLC India surged 14 per cent after reporting a sharp jump in quarterly profit, while CARE Ratings climbed nearly 8 per cent on strong earnings growth. MTAR Technologies rallied over 12 per cent after securing large export orders.
On the flip side, Kaynes Technology India plunged over 20 per cent after reporting a decline in quarterly net profit despite higher revenues.
Analysts said markets are likely to remain stock-specific in the near term as investors continue to monitor global trade developments, inflation trends, crude oil prices and quarterly earnings announcements.