Market

Sensex hits record high as Fed’s dovish stance fuels market; IT stocks extend rally

NEW DELHI: Benchmark indices hit fresh record highs on Wednesday as reassurance by the US Fed to keep interest rates near zero uplifted the morale. IT stocks continued to be in demand while auto stocks saw profit booking.

IT results out so far including that of majors like

and indicate a strong order pipeline, emboldening the companies to raise their revenue guidance to 14 to 17 per cent. This augurs well for the industry and can invite further, said analysts.

The 30-share pack Sensex climbed 254.80 points or 0.48 per cent to close at 53,158.85. Its broader peer NSE Nifty rose 70.25 points or 0.44 per cent to 15,924.20. Both indices rose for the third day, climbing fresh peaks.

“Indian indices extended their gains to all-time high supported by positive Asian market and rally in reality, IT, financials and metals stocks, in anticipation of robust Q1 earnings and recovery in demand,” said Vinod Nair, Head of Research at Geojit Financial Services.

Market at a glance:

  • L&T Tech Services surges 18 per cent after a strong Q1 show
  • Sequent Scientific climbs 8 per cent after tablet approval in Turkey
  • Titan end in the red after Jhunjhunwalas trim stakes
  • HCL Tech surges 5 per cent in anticipation of superior Q1 earnings
  • IPO watch: Zomato issue subscribed 1.74 times

Among the blue-chip names, HCL Tech was the top gainer, rising 5.01 per cent. L&T, Wipro, Tech Mahindra, Hindalco, UPL, HDFC Bank, ITC, UltraTech Cement and Tata Steel were other gainers.

ONGC was the top loser in the Nifty pack, falling 3.06 per cent. Eicher Motors, Bharti Airtel, Grasim, Coal India, Britannia Industries, Sun Pharma, Titan and Indian Oil were others that ended in the red.

“15,600 remains a crucial support on the downside and we think Nifty50 may move towards 16,400 levels gradually after closing over 15,900 today.”

— Mohit Nigam, Hem Securities

Broader market indices ended higher outperforming their headline peers. Nifty Smallcap gained 0.95 per cent and Nifty Midcap rose 0.48 per cent. Nifty 500, the broadest index on NSE, ended up 0.43 per cent.

Birlasoft, Sequent Scientific, Cyient, JSW Energy, Syngene International and Prestige Estate Projects were top gainers from mid and smallcap indices, climbing in the range of 5-9 per cent.

CESC, Oil India, Apollo Tyres, Edelweiss Financial Services, Dilip Buildcon and IOL Chemicals and Pharmaceuticals were major losers from broader market space, falling in the range of 2-5 per cent.

The sectoral matrix on the NSE was mixed. Nifty Auto was the top loser, down 0.40 per cent. Nifty Media and Nifty PSU Bank were other losers. Nifty Realty was the top gainer, up 4.20 per cent. Nifty IT advanced 1.29 per cent.

Market breadth was in favour of gainers as 1,662 stocks ended in the green, while 1,576 names settled with cuts. As many as 510 securities hit 52-week highs, mostly from the smallcap space. Meanwhile, 23 names hit 52-week lows, mostly from the microcap space. About 500 stocks hit upper circuit limits and 205 lower circuit limits.

European markets were trading lower. London-based FTSE was down 0.56 per cent while Paris and Frankfurt declined 0.74 per cent and 0.95 per cent, respectively. In Asia, barring Japan and Singapore that registered losses, all markets ended in the green.

Most Related Links :
Business News Governmental News Finance News

Need Your Help Today. Your $1 can change life.

[charitable_donation_form campaign_id=57167]

Source link

Back to top button