Nifty, Sensex Hold Firm as IT Stocks Roar; Realty Index Worst Hit
Nifty, Sensex Hold Firm as IT Stocks Roar
On July 12, the Nifty and Sensex indices experienced a strong trading session, driven by significant gains in IT stocks. The Sensex increased by 0.78 percent to 80,519, while the Nifty rose by 0.77 percent to 24,502. Among the traded shares, 1,526 advanced, 2,023 declined, and 93 remained unchanged. Notably, the broader market, which includes midcap and smallcap indices, underperformed as they reversed the morning trend; midcap fell by 0.2 percent, and smallcap decreased by 0.1 percent.
Also read : HCL Tech Q1 Results: Revenue and Net Profit Decline Expected
IT Stocks Lead Market Gains
The IT sector was the primary driver of the market’s positive performance, with the IT index soaring nearly 5 percent. The top gainers on the Nifty were IT stocks, led by TCS, which experienced a significant rally following its Q1 results surpassing analyst expectations. This surge in TCS shares sparked a bullish sentiment across the IT sector. The upcoming HCLTech Q1 results are also anticipated to keep the sector in focus. HCLTech’s revenue is projected to decline by 1 percent quarter-on-quarter to Rs 28,094 crore, which is expected to impact its net profit and EBIT margin.
Realty Index Slumps
Conversely, the realty index faced the most substantial decline, dropping by 1.5 percent. Major contributors to this decline were stocks like Macrotech, Lodha, and Prestige.
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VIX Down 2.3 Percent
The VIX, or fear gauge, decreased by 2.3 percent to around 13, indicating reduced market volatility.
Market Outlook and Expert Insights
Vinod Nair, head of research at Geojit Financial Services, attributed the market’s positive trajectory to several factors, including strong IT sector results and a decrease in US inflation to a one-year low. He noted that the likelihood of a rate cut in September is increasing, as evidenced by the fall in the dollar index. Nair expects stock-specific movements to gain momentum due to the ongoing earnings season and the upcoming budget, with IT stocks remaining in the spotlight.
Upcoming Data and Events
Key upcoming events include India’s inflation data, set to be released post-market on Monday. Other significant results expected next week include Jio Financials, HDFC Life, Asian Paints, LTIMindtree, Infosys, Havells, Wipro, JSW Steel, and Paytm. Additionally, global investors will be watching China’s Q2 GDP numbers, US Core Retail Sales data, and ECB interest rate decisions.
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