Advertisement

Updated January 12th, 2024 at 16:19 IST

Sensex, Nifty close at record highs powered by rally in Infosys, TCS

TCS and Infosys surged 3.94 per cent and 7.93 per cent, respectively, following their third-quarter results that exceeded expectations.

Business Desk
Sensex
The Sensex ended 847 points higher at record closing high of 72,568.45 | Image:Republic
Advertisement

Markets at record high: The Indian equity benchmarks closed at record highs on Friday powered by a rally in information technology heavyweights Infosys and Tata Consultancy Services (TCS) after they reported better than estimated December quarter earnings. The Sensex rose as much as 1,000 points to hit record high of  72,720.96 and Nifty 50 index touched record high of 21,928.25.

The Sensex advanced 847 points to close at record high of 72,568.45 and Nifty 50 index gained 247 points to settle at record high of 21,895.

Advertisement

The Information Technology (IT) index witnessed a significant surge, jumping 5.14 per cent and hitting a 21-month high, marking its best session since October 8, 2020.

Image credit: Republic

Advertisement

TCS and Infosys surged 3.94 per cent and 7.93 per cent, respectively, following their third-quarter results that exceeded expectations. The positive revenue growth reported by these companies suggested a favourable demand environment, alleviating concerns about further deterioration.

"Indian markets soared to new heights in a powerful rally, driven by IT heavyweights. Green shoots of recovery in the IT sector on the back of an improved outlook for BFSI in FY25 positively influenced market sentiments. The robust performance of PSU banking stocks is underscored by the inherent synergy between their loan portfolios and the prevailing business cycle. Noteworthy is the fact that this upward surge remained resilient amid mixed global cues on account of higher-than-expected US inflation and positive job data, which tempered expectations for an imminent rate cut by the US Fed," said Vinod Nair, head of research, Geojit Financial Services.

Advertisement

Six IT stocks, including Infosys and TCS, secured positions among the top seven gainers on the Nifty, each witnessing a minimum gain of 3.77 per cent. HCL Technologies and Wipro, set to release their earnings after the bell, closed 3.77 per cent and 3.85 per cent higher, respectively.

Investors are also keenly awaiting domestic inflation data, with the consumer price index expected to show a rise in December while remaining within the central bank's target range. Elevated inflation may potentially prolong the central bank's rate pause, impacting rate-sensitive sectors such as auto, realty, and consumer goods.

Advertisement

Recent data from the United States revealed a higher-than-expected consumer price inflation of 0.3 per cent in December, which could delay an anticipated US interest rate cut in March. Analysts suggest that this development might lead to further consolidation in global equities in the coming days.

Advertisement

Published January 12th, 2024 at 16:13 IST

Your Voice. Now Direct.

Send us your views, we’ll publish them. This section is moderated.

Advertisement
Advertisement
Whatsapp logo