IT Stocks Lead the Rally
Analysts say the market’s resilience is underpinned by robust Q1 earnings from several sectors, ongoing FII inflows, and expectations of rate cuts by major central banks later this year. However, caution persists due to mixed global signals, geopolitical tensions, and currency volatility.
BIZ DESK
– Benchmark domestic equity indices continued their upward momentum for the fifth straight session on Tuesday, buoyed by sustained buying in technology stocks and positive sentiment in the broader market. The BSE Sensex ended the day higher by 213 points, or 0.26%, settling at a fresh closing high of 81,858, while the NSE Nifty 50 gained 70 points, or 0.28%, to close at 25,051.
The rally was largely powered by a robust performance in the IT sector, with major players like Infosys and TCS clocking impressive gains amid optimism over global tech spending and a softer U.S. dollar that tends to boost Indian tech exporters.
Large-Cap Movers: IT Leads, Financials Lag
Out of the 30 Sensex constituents, 15 stocks closed in the green.
- Infosys emerged as the top gainer, surging 3.9% on strong institutional buying and expectations of margin expansion.
- TCS followed closely with a gain of 2.7%, while Hindustan Unilever rose 2.5%, aided by improved rural demand forecasts.
On the flip side, the session saw pressure on some heavyweight stocks:
- Bharat Electronics Limited slipped 2.1%,
- Bajaj Finance lost 1.6%, and
- Tata Motors ended lower by 1.5%, dragged down by weak global auto sales data.
Sectoral Performance: IT and Teck in Spotlight
The sectoral indices on the BSE painted a largely positive picture with 14 of the 21 sectoral indices closing in green.
Top Performing Sectors:
- Focused IT soared 2.7%,
- IT Index gained 2.6%, and
- Teck (Technology) advanced over 2.2%, reflecting investor confidence in digital transformation trends and robust deal pipelines.
Underperforming Sectors:
- Financial Services and Bankex each declined 0.33%, amid cautious commentary from global credit agencies on asset quality.
- Healthcare slipped 0.2%, and
- Oil & Gas as well as Energy sectors dipped by over 0.1% amid concerns of weakening crude oil demand.
Broader Market Stays Positive
The broader market too echoed the positive sentiment:
- The BSE Mid-Cap index rose 0.4%
- The Small-Cap index added 0.3%
Market breadth remained firmly positive:
- 2,343 stocks advanced
- 1,725 stocks declined
- 167 stocks ended flat
This suggests that investor participation remains strong across market capitalizations, not just limited to large-cap indices.
Market Outlook: Positive Bias, Global Cues in Focus
Analysts say the market’s resilience is underpinned by robust Q1 earnings from several sectors, ongoing FII inflows, and expectations of rate cuts by major central banks later this year. However, caution persists due to mixed global signals, geopolitical tensions, and currency volatility.
As markets approach record territory, traders are advised to remain stock-specific and track upcoming speeches from key Fed officials and macroeconomic data from the U.S. and China.