IT stocks lift Nifty to record high

Benchmark indices swing over 1.6% in intraday trade

The benchmark Nifty 50 finished at a new record high, its fifth in 2024, propelled by gains in information technology (IT) stocks and ITC. The 50-share index finished at 22,218, with a gain of 162 points or 0.7 per cent. After swinging 1,175 points, or 1.63 per cent, Sensex ended the session at 73,158, with a gain of 535 points or 0.7 per cent. This was the seventh gain in the last eight trading sessions for the benchmark indices.

IT stocks gained as Nvidia Corp’s robust sales forecast fanned a surge in tech stocks across the globe. The company is likely to surpass Alphabet in market value and has been a big driver of US stock market gains this year. Indian IT majors TCS rose 2.4 per cent, Infosys by 1.5 per cent, and HCLTECH by 3.1 per cent.

ITC rose after media reports said the fast-moving consumer goods company would buy a 47 per cent stake in Prataap Snacks.

The Nifty IT index rose the most at 1.94 per cent followed by Nifty auto at 1.64 per cent.

“The domestic market recovered from the day’s low, buoyed by an impressive earnings report from US tech stocks. The broader market showed resilience as India’s economic activity continued expanding in February, with service and manufacturing PMI improving. Consequently, it resulted in outperformance in discretionary stocks and capital goods,” said Vinod Nair, head of research at Geojit Financial Services.

The market breadth was mixed, with 2,102 stocks advancing and 1,815 declining.

Barring one, all sectoral indices of BSE gained.

Tech stocks gained the most, and its sectoral index on BSE rose 1.8 per cent.

The India Vix index fell 4.6 per cent to close at 15.2. The Nifty Midcap 100 index outperformed with a gain of 1 per cent.

Yesterday’s gains came despite net outflows of ~1,410 crore from overseas investors. Domestic funds, however, were net buyers to the tune of ~1,824 crore.