Sensex jumps nearly 400 points, Nifty tops 24,100 as IT stocks lead market rally
Benchmark equity indices opened on a strong note on Thursday, with the BSE Sensex surging nearly 400 points and the NSE Nifty50 crossing the 24,100 mark, buoyed by a sharp rally in information technology stocks and easing crude oil prices.
The Sensex climbed 398.43 points, or 0.52%, to 77,321.07 in early trade, while the Nifty50 advanced 123.90 points, or 0.52%, to 24,129.75.
Investor sentiment improved after Brent crude slipped below $71 per barrel amid signs of progress in indirect US-Iran talks. Softer crude prices are seen as a positive for India as they help reduce inflationary pressures and lower the country’s import bill.
The rally was broad-based, with most key indices trading in positive territory. Nifty 100 rose 0.41%, Nifty 200 gained 0.38%, Nifty 500 added 0.36%, Nifty Midcap 50 advanced 0.34%, Nifty Midcap 100 climbed 0.24% and Nifty Smallcap 100 was up 0.41%. India VIX, the market’s fear gauge, declined 2.81%, signalling improved investor confidence.
IT stocks emerged as the biggest winners after witnessing recent pressure. The Nifty IT index jumped 3.37%, while Nifty Mid Small IT & Telecom gained 1.68%. Other sectoral indices also traded higher, with Nifty Metal rising 0.80%, Consumer Durables 0.68%, Realty 0.50%, Financial Services 0.46%, Private Bank 0.45% and Auto 0.34%.
Among the Sensex constituents, Infosys led the gains with a 4.44% jump, followed by HCLTech (3.56%), TCS (2.82%) and Tech Mahindra (2.35%). Buying was also seen in Eternal, Bajaj Finserv, IndiGo, Titan, Kotak Mahindra Bank, ICICI Bank, Sun Pharma and HDFC Bank.
On the flip side, NTPC, BEL, Larsen & Toubro, Power Grid, Bharti Airtel, Bajaj Finance, Maruti Suzuki, Trent and ITC traded in the red.
Despite the upbeat opening, investors remain watchful of the progress of the southwest monsoon. Any prolonged rainfall deficit could weigh on rural demand, agricultural output and inflation, making weather developments a key factor for market sentiment.
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said several factors are supporting the market in the near term, including falling crude oil prices, robust June auto sales, easing foreign investor selling and continued domestic institutional buying.
He noted that passenger vehicle sales grew 24.1% in June, reflecting resilient demand in the economy. However, he cautioned that the continuation of India’s market outperformance will largely depend on the progress of the monsoon, while banking and digital platform companies are expected to remain in focus ahead of their first-quarter earnings.
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