Nifty, Sensex Hit Record High On IT Major's Better Performances
Indian benchmark indices hit record highs on Friday, with the Sensex reaching 72586 and the Nifty reaching 21896, up 865.19 points, or 1.21 percent, and 249 points, or 1.15 percent, respectively.
A sharp IT stock rally fueled by better-than-expected performance by tech majors Infosys and TCS, a steady inflow into mutual funds, and buying by retail investors and domestic investors (DIIs) triggered the upmove.
DIIs investors on January 11 bought shares to the tune of more than Rs 1,600 crore.
About 1,891 shares advanced and 73 remained unchanged despite a weak global market mood and higher-than-expected US inflation data. However, 1,353 declined.
On the sectoral front, except for Nifty Auto and Nifty Pharma, all other sectoral indices were trading higher, with the Nifty IT index leading the gains, trading 4.7 percent higher, followed by Nifty PSU Bank with a 3 percent rise, as investors remain bullish on their positive growth outlook in the near term.
Other top gainers were Nifty Energy, Nifty Infra, Nifty Metal, and Nifty FMCG, which rose by half a percent. Nifty Realty jumped over 2 percent as Macrotech Developers, Sobha, Brigade Enterprises, and Phoenix Mills gained up to 5 percent.
In the broader market, BSE Midcap and SmallCaps indices were trading with gains of 0.43 percent and 0.62 percent, respectively, at 2.30 pm. Post-Q3 results, analysts are optimistic about the IT sector for the long term, as TCS performed well across various metrics while Infosys made some adjustments to their future guidance.
V. K. Vijayakumar, Chief Investment Strategist, Geojit Financial Services, predicts a consolidation at the 21600 level, having crossed the Nifty on the back of resilience in IT stocks and strength in Reliance.
Globally, the US market ended flat overnight on the higher-than-expected inflation, while Japan”s Nikkei share average reached a fresh 34-year peak on January 12.
