Nifty, Sensex Logs Best Rally In Over A Month As Tech Stocks Lead: Midday Market Update
Shares of Infosys, TCS, Axis Bank, Reliance Industries and HCLTech helped the Nifty's surge.
The Indian benchmark indices brushed off valuation concerns to scale past yet another life high on Friday, driven by the heavyweight technology stocks on positive earnings of IT bellwether Tata Consultancy Services Ltd.
After opening higher, the NSE Nifty 50 surged past the key 24,500 level, while the S&P BSE Sensex surpassed the 80,500 mark. As of 11: 21 a.m., the Nifty was at 24,490, up 0.71% or 173 points, and the Sensex was at 80,442, down 0.69% or 570 points.
The benchmarks—Nifty and Sensex—recorded their best intraday surge in over a month by rising 1.14% and 1.25% respectively, the highest since June 7.
Traders will also eye the release of the key inflation and the industrial production print in India after the market hours.
IT companies added over Rs 1 lakh crore to investor wealth on Friday, after the Nifty IT rose to the highest level in over two years, led by Infosys Ltd. and TCS.
The software-technology giant's net profit declined 3.2% quarter-on-quarter to Rs 12,105 crore. Brokerages said that the catch-up rally for IT major's shares is on the horizon, but they remain wary as the management pointed out unchanged market conditions with the results announcement.
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Shares of Infosys, TCS, Axis Bank Ltd., Reliance Industries Ltd. and HCL Technologies Ltd. helped the Nifty's surge.
While those of Maruti Suzuki India Ltd., Kotak Mahindra Bank Ltd., Divi's Laboratories Ltd., Asian Paints Ltd., and Hindalco Industries Ltd. weighed on the index.
Eight of the 12 sectors claimed higher in trade, with the IT media and the media index advancing the most by 3.64% and 2.55%, respectively. Nifty Realty fell the most.
The broader indices underperformed the benchmarks as the BSE MidCap fell by 0.22%, while the SmallCap rose by 0.06%.
Twelve out of the 20 sectoral indices on the BSE declined in the session, with Realty falling the most.
The market breadth was slightly skewed in the favour of the sellers as 1,862 stocks fell, 1,853 rose and 154 remained unchanged on the BSE.
