There was a sharp rally in share markets in India in the last few days with the stocks of the majors climbing sharply and with IT stocks leading the way. The Nifty 50 was up more than 200 to 24,400 and the Sensex up more than 660 to 660 on this day.
Information technology stocks were the main driver of the rally and continued to rise again today, with Infosys, TCS, Wipro and HCL Technologies seeing strong investor interest in the sector and strong quarterly earnings. The IT sector’s comeback helped to push the broader indices up, which had been drifting in the background for a few months.
Market experts also said that easing global concerns, especially inflation and interest rates, had also helped to drive the rally. Foreign institutional investors (FIIs) turned net buyers and thus supported the rally. Domestic investors with strong corporate earnings and stable macroeconomic indicators were still able to push it higher.
Sensex soared past 78,000 intraday, rising more than 660 points to close at 78,661. The Nifty 50 rose to 24,400 and was up more than 660 points on the day. The broader markets also rallied, but mid-cap and small-cap markets also rose strongly.
IT was best placed within the sector, but banking and financial stocks also helped drive the rally. Investors were also encouraged by positive news of good news about bank earnings and hopes of stable credit growth were also driving the market. Energy and FMCG stocks were in a mixed zone with some stocks turning profit-booking after a recent good run.
Investor mood was also helped by global cues as the US markets rose overnight and Asian markets opened on a positive note. The alignment of domestic and international factors created a favorable environment for Indian equities to hit new highs.
Retail investors are in a bind as the market is driven by sectoral trends. IT stocks, which were under pressure earlier as a result of global uncertainty, are now in a good shape and are ripe for long-term investment. But still valuations are high and there is a need to be selective.
The rise of Nifty and Sensex shows how Indian stocks are still largely immune to global market turbulence and IT stocks are leading the way and participation in other sectors is high. A record high today and with strong fundamentals and investor confidence in place are in place for future momentum.
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