IT Drives Stock Market Chariot; Nifty, Sensex Continue To Seek New-highs
In the Nifty50 index, IT and Metal rule as the top gainers where HCL Tech, TCS and Infosys gain 5.43 per cent, 5.28 per cent and 5.13 per cent respectively
The Indian stock market continued to discover its new altitude with every trading session. The Fed’s dovish stance ignited the IT stocks whereas the other sectoral indices also traded aggressively with huge gains. The absence of any major global or domestic hurdles has amplified the investors confidence.
The National stock exchange (NSE) Nifty 50 index concluded its trading with 1.29 per cent gains to 21,456, whereas the S&P Bombay Stock Exchange (BSE) Sensex settled at 71,483 levels with 1.37 per cent gains to new-highs.
“There is a lot of enthusiasm amongst the investors, especially foreign investors, who are pumping in funds into domestic equities over the past few weeks post the state election results. However, due to overbought technical conditions, the benchmark may consolidate in the near term but that said, the near-term outlook for the market continues to be in favour of the bulls,” said Prashanth Tapse, Senior VP (Research), Mehta Equities.
In the Nifty50 index, IT and Metal ruled as the top gainers where HCL Tech, TCS and Infosys gained 5.43 per cent, 5.28 per cent and 5.13 per cent respectively, whereas Adani Enterprises, Tata Steel and NTPC settled with more than 3 per cent gains.
“The Sensex hitting 71,000 mark highlights a significant milestone for the Indian stock market, reflecting the nation's economic progress and growing investor confidence. While celebrating this achievement, investors should keep in mind that it's crucial to maintain a balanced approach to investing. Long-term strategies, such as regular portfolio rebalancing, diversification, and investing in financially robust companies, should remain priorities,” said Suman Bannerjee, CIO, Hedonova.
Consider slightly increasing your equity allocation amid market momentum and continue using market dips as opportunities to expand your portfolio. Stick to a diversified approach and allocate assets wisely to mitigate risks, added Bannerjee.
Sectoral Movement
In terms of sectoral performance, IT traded with the highest gains followed by Nifty Metals and PSU Banks, however FMCG, Pharma struggled for gains and Realty failed to pair with market gains pulled by Radico Khaitan, Aurobindo Pharma and Prestige Estate in each index.
Besides, Nifty Bank also resumed its gained and traded 0.86 per cent higher lifted by Bandhan Bank, SBI, Federal Bank and IDFC First Bank.
Additionally, the more domestically focussed indices, mid-cap and small-cap also withnessed significant gains with 1.31 and 0.85 per cent gains respectively. However, FMCG and Media traded marginal
Among Nifty 50 mid-cap stocks also, Persistent Systems, Oracle Financial Services and Coforge gained more than 5 per cent. Contrastly, Max Financial Services, Power Finance Corp and REC traded lowest in the index.
Stocks Specific
In terms of individual stocks, IREDA halted its rally amid profit booking and hit a lower circuit of 10 per cent to close at Rs 108.30.
Birla Soft stocks boomed nearly 3 per cent to Rs 719 after HDFC Securities raised target price to Rs 800 on the basis of margin expansion between FY 24-26.
Aether Industries rallied 7.5 per cent after Hero Motocorp increased its stake to 39.7 per cent after acquiring an additional 3 per cent.
Kfin Tech closed 3.2 per cent lower, however the stock reduced it 9 per cent loss to 3 per cent in the session to close at Rs 514.75.
Texmaco Rails rallied 3.14 per cent after bagging Rs 1,374 crore order from the railway ministry to supply and manufacture 3,400 Boxns wagons.
JM Financials soared to more than 13 per cent due to change in management and allotment of 3.77 lakh shares under ESOP.
