Unstoppable IT Surge Drives Sensex and Nifty to Uncharted Heights

The domestic stock markets soared to record highs in a stunning end to Friday’s trading session, recording an astounding third straight weekly gain in Nifty. The Sensex recorded a fantastic 0.77 percent climb, flying to an amazing 66,060.90, while the Nifty index prevailed with an incredible 0.78 percent gain, finishing at an astonishing 19,564.50. Due to this outstanding performance, both indices saw a significant weekly rise of 1.2 percent.

The IT industry, which was propelled by the hopeful expectation of a probable pause in the US Federal Reserve’s rate-hike cycle, was the main driver behind this astounding climb.

 

Nifty

 

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Recent statistics showing a decline in US inflation helped fuel speculation about a probable Federal Reserve rate rise hiatus after July. This had a big effect on the market, especially the IT sector, which saw a stunning increase of 4.45 percent. Surprisingly, this increase took place despite conflicting earnings reports from significant companies including TCS, Wipro, and HCLTech.

The midcap and smallcap portions of the market saw increases in addition to the IT sector’s success. Smallcaps excelled, rising a remarkable 1.42 percent, while Nifty midcaps saw a steady rise of 1.15 percent. The midcaps also set new records, which increased the market’s optimism and added to the enthusiasm.

Nifty

The top gainers on the Nifty index were TCS, HCLTech, Tech Mahindra, Infosys, and LTI Mindtree, displaying their outstanding performance. All sectoral indices with the exception of energy showed increases as the Indian indexes continued their upward trend in line with the rest of the world’s markets. However, Nifty IT continued to draw attention due to its impressive increase of almost 4.5 percent. This increase was related to the upbeat predictions made by well-known IT businesses that had released their results.

Riches Vanara, a Technical and Derivatives Analyst at Stoxbox, claims that the gains were backed by good WPI (Wholesale Price Index) data as well as the assumption of no significant negative shocks during the first-quarter earnings season.

According to the WPI figures, the economy shrank by 4.12 percent in June, the lowest level since October 2015. This was the third straight month of declines.

Vanara stated that, after analyzing the technical factors, Nifty initially got off to a slow start and showed very slight volatility in the first hour. However, the index progressively increased and had a positive breakthrough from its prior 220 point consolidation zone. Nifty rose to a new record high of 19,595 as a result of short covering in the IT industry.

According to SEBI Registered Research Analyst V.L.A. Ambala of Stock Market Today (SMT), the Nifty and Sensex closed at fresh record highs of 19,564 and 66,060, respectively.

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