Indian equity markets staged a remarkable intraday recovery today after a weak start and snapped the four-day losing streak amid an explosive rally in the IT sector. The BSE Sensex closed at 74,649.84 points with a gain of 382.50 points or 0.52 per cent. Whereas, NSE’s Nifty 50 index closed at 23,483.55 points with a rise of 100.95 points, or 0.43 per cent. The rally comes amid heavy buying in the IT sector. The Nifty IT index surged over 4 per cent, with heavyweights such as TCS and Infosys leading the gains. According to experts, the sector also benefited from a weakening rupee.
“As export-oriented businesses earning a majority of their revenues in US dollars, IT companies remain natural beneficiaries whenever currency pressures intensify, making them an attractive defensive play during periods of macro uncertainty,” said Hariprasad K, SEBI-registered Research Analyst and Founder, Livelong Wealth.
TCS shares surge over 6%
Shares of 20 out of 30 Sensex companies closed in the green, while the remaining 10 closed in the red. On the other hand, shares of 34 out of 50 Nifty 50 companies closed in the green, while the remaining 16 closed in the red.
Among the Sensex companies, shares of Tata Group’s IT company TCS closed with the highest gain of 6.53 per cent today. Infosy, HCL Tech, Adani Ports, and Tech Mahindra were among the top gainers. Whereas, shares of NTPC closed with the highest loss of 2.89 per cent.
Volatility index declined
Another key support came from the decline in India VIX. The volatility index declined by 7 per cent to close near 15 levels. According to experts, any further moderation in volatility is likely to provide additional support to bullish sentiment. Also, Brent crude, the global oil benchmark, declined 1.28 per cent to USD 93.76 per barrel.
Meanwhile, Foreign Institutional Investors (FIIs) offloaded equities worth Rs 3,911.68 crore on Monday, according to exchange data.
On Monday, the Sensex dropped 508.40 points, or 0.68 per cent, to settle at 74,267.34. Falling for the fourth consecutive day, the Nifty edged lower by 165.15 points, or 0.70 per cent, to end at 23,382.60.
ALSO READ | EPFO 3.0: Will ATM PF withdrawals reduce your pension? Here’s what you need to know
(This article is for informational purposes only and should not be construed as investment, financial, or other advice.)
