Indian Markets Snap Losing Streak as Infosys Powers Bullish Rally

January 16, 2026 – The Indian equity markets witnessed a strong resurgence in early trade today, as benchmark indices Sensex and Nifty snapped their recent losing streak. The rally was primarily fueled by a significant surge in Infosys shares, following the IT giant’s better-than-expected quarterly performance and an optimistic revision of its annual revenue guidance.

Benchmarks Reach New Heights

In a buoyant morning session, the BSE Sensex climbed over 690 points, crossing the 84,000 mark to trade at 84,080.28. Simultaneously, the NSE Nifty 50 surged by 191 points, comfortably trading above the 25,850 level. This upward movement comes after a period of volatility and provides much-needed relief to investors concerned about persistent foreign fund outflows.

The “Infosys Effect”

The star of the morning was undoubtedly Infosys, with its share price jumping nearly 5% to an intraday high of ₹1,683.45. While the company reported a slight 2.2% year-on-year dip in consolidated net profit (₹6,654 crore), the “Street” chose to focus on the following positive catalysts:

• Guidance Upgrade: Infosys raised its FY26 revenue growth guidance to 3%–3.5%, up from the previous 2%–3%. This move signaled management’s confidence in a demand recovery.
• Strong Deal Wins: The company reported massive deal wins totaling $4.8 billion in Q3, with 57% of these being “net new” business.
• AI Momentum: Success in its AI-first suite, Infosys Topaz, was cited as a key driver for gaining market share.

The rally in Infosys had a “halo effect” on the broader IT sector, with Wipro and Tech Mahindra also gaining over 3% in early trade.

Broader Market Sentiment

The positive sentiment wasn’t limited to technology. PSU Banks and Realty stocks also saw significant buying interest. Furthermore, cooling global oil prices provided a tailwind for Indian markets. Brent crude dipped over 4% to approximately $63.76 per barrel following signals of de-escalating tensions in the Middle East, which helps ease inflation concerns for oil-importing nations like India.

Domestic vs. Foreign Flows

Despite the rally, Foreign Institutional Investors (FIIs) remained net sellers, offloading equities worth over ₹4,781 crore in the previous session. However, Domestic Institutional Investors (DIIs) continued to act as a pillar of support, absorbing the pressure with net purchases of ₹5,217 crore.

Looking Ahead

Market participants are now closely watching for the Q3 results of Reliance Industries (RIL) and Wipro, scheduled for later today. Additionally, the results of the Maharashtra civic polls are expected to influence local sentiment as counting progresses.