Shillong, July 14: The Sensex soared past the historic 66,000-mark, driven by a remarkable surge in IT stocks on Friday. The BSE Sensex closed at 66,060, marking a gain of 502 points.
The rally was led by major IT companies, with TCS rising by 5.1%, Tech Mahindra and Infosys both up by 4.4%. HCL Tech recorded a gain of 3.8%, while Wipro saw a rise of 2.6%.
Vinod Nair, Head of Research at Geojit Financial Services, attributed the optimism among investors to controlled inflation in the US. This positive outlook suggests that a 25 bps rate hike would be sufficient to stabilize the US economy. Despite muted Q1 earnings, Indian IT stocks have seen strong buying activity due to this improved prospect.
Furthermore, the domestic market witnessed a broad-based rally supported by India’s third consecutive monthly decrease in wholesale prices and the positive involvement of Foreign Institutional Investors (FIIs), according to Nair.
Nifty also performed well throughout the session, with a sharp upswing in the last half-hour of trading. It closed near the day’s high at 19,565, up 151 points or 0.8%. The index reached a new intraday high of 19,595.
Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services, noted that global cues were supportive, following the release of soft inflation data. The month-on-month PPI inflation rose by only 0.1% in June, raising hopes of a potential pause in rate hikes by the Federal Reserve.
As per IANS, the broader market outperformed, with gains of 1-1.5%. All indices closed in the green, with IT stocks being the standout performers, recording gains of 4.5%. According to Khemka, most of the negatives have already been priced in, making valuations attractive at this stage. Media, realty, and metals sectors also witnessed significant gains.
Looking ahead, market participants will closely monitor the merged HDFC Bank’s results on Monday, given its substantial weightage of 29% in the Bank Nifty.
As the quarterly earnings season gains momentum, stock-specific actions are expected to intensify. Additionally, expectations of positive quarterly results, consistent buying interest from FIIs, and favorable progress on the monsoon front are likely to maintain an overall positive trend in the market, Khemka concluded.
