April 23, 2025 — Indian equity markets advanced for a seventh consecutive session on Wednesday, with IT stocks spearheading gains as investors cheered signs of easing U.S.-China trade tensions and a strong revenue forecast from HCLTech.
Nifty Eyes Record Close in 2025
As of 10:31 a.m. IST, the Nifty 50 index climbed 0.29% to 24,236.70, inching closer to a new record close for the year. Meanwhile, the BSE Sensex added 0.34% to reach 79,870.19. The rally extended a winning streak fueled by optimism over global trade talks and stronger-than-expected corporate earnings.
U.S. President Donald Trump’s latest comments suggested a softening stance toward China, stating that tariffs would be “significantly” lowered following a deal. This sign of de-escalation helped reverse market fears of prolonged economic fallout from the trade war.
HCLTech Sparks Tech Sector Surge
Among top performers, HCLTech (HCLT.NS) soared 7% after issuing an upbeat revenue forecast for fiscal year 2026, outshining both analyst expectations and guidance from peers. The company, India’s third-largest IT services firm, highlighted robust demand pipelines and strong deal wins, signaling resilience despite macro uncertainties.
“The earnings and commentaries from companies that have so far reported results have mostly been positive, especially HCLTech,” said Anita Gandhi, founder and head of institutional business at Arihant Capital Markets. “The IT sector had also undergone significant correction earlier, so there’s strong momentum now.”
The Nifty IT Index (.NIFTYIT) surged 3.5%, contributing more than half of the overall gains in the benchmark Nifty 50. Indian IT companies, which earn a large portion of their revenue from the U.S., are particularly sensitive to global trade dynamics.
Broader Market Sentiment Improves
Hopes of reduced geopolitical friction and Trump’s toned-down rhetoric regarding Federal Reserve Chair Jerome Powell supported a broader rally across Asia. The MSCI Asia ex-Japan Index (.MIAPJ0000PUS) rose nearly 2%, reflecting revived investor confidence in emerging markets.
However, not all sectors shared in the gains. Mahindra & Mahindra Financial Services (MMFS.NS) dropped 3% after reporting a disappointing quarterly profit, highlighting continued pressure in the non-banking financial segment.
Outlook: Momentum vs. Macro Risks
Market sentiment remains buoyant for now, buoyed by a mix of global trade optimism, supportive corporate earnings, and anticipation of policy stability in the run-up to India’s next budget season.
Still, analysts caution that underlying risks such as inflation, interest rate uncertainty, and geopolitical volatility could reassert themselves, especially if trade negotiations falter or the U.S. economy slows.
Bottom Line: India’s markets are capitalizing on a global risk-on mood, and the IT sector’s rebound could lead the Nifty to fresh highs in 2025. However, the sustainability of this rally will depend on continued progress in global trade talks and domestic economic resilience.
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