IT, metal stocks shine as Sensex, and Nifty open steady after record run.

IT and Metal Stocks Rally as Sensex and Nifty Hold Ground Post Record Highs

Written by: Supriya Kadu

Edited by: Omkar Devadkar

Last Updated: September 27, 2024

Summary: In response to macroeconomic improvement and the US Fed's recent interest rate drop, Accenture raised its 2025 revenue growth outlook to 3-6 percent, lifting nifty IT by approximately 2 percent.

The Sensex and Nifty 50 began flat on September 27, after six days of record gains. The IT and metals stocks saw the largest gains, while the FMCG and banking industries saw the worst losses.

At 9.16 AM, the Sensex was up 20 points, or 0.02 percent, at 85,856, while the Nifty was up 10 points, or 0.04 percent, at 26,226. A total of 1,577 shares increased, 661 shares decreased, and 130 shares stayed the same.

According to WealthMills Securities Pvt Ltd. Director of Equity Strategy, Kranthi Bathin, "With strong inflows from both DIIs and foreign investors, frontline companies remain in positive territory. However, the mid-cap index has shown a downturn in the past week, indicating some market breadth distribution. Over the next week, we may see market consolidation."

Nuvama stated, “With sustained FII participation, we expect HDFC Bank and other private banks to outperform.” As per Nuvama's most recent rollover research report, the brokerage also anticipates strong performance from metals and a few chosen IT firms and a decline in FMCG stocks.

Accenture, a Nasdaq-listed provider of IT services, increased its annual revenue growth forecast for 2025 to 3-6 percent, citing an improvement in the macroeconomic condition and the US Federal Reserve's recent interest rate cut. This caused Nifty IT to rise by about 2 percent. Accenture is a well-known reference point for Indian IT firms, providing projections about their future success.

Hindalco, Vedanta, and Tata Steel's advances drove the Nifty Metal's increase of more than one percent. The metal index saw a gain for the sixth session with this. Since China revealed its stimulus program for its faltering economy, metal stocks have been rising.

The BSE Smallcap index increased by 0.4 percent, while the BSE Midcap index marginally increased by 0.2 percent on the overall market.

The Nifty 50 saw a surge in IT equities, with HCLTech, LTIMindtree, Wipro, Tech Mahindra, and Infosys all seeing gains of 2-4 percent. The largest losers on the downside were ONGC, Bharti Airtel, L&T, and Power Grid, which all saw drops of one to three percent.

The majority of Asia-Pacific markets saw gains today, with Chinese stocks continuing to rise as a result of Beijing's stimulus initiatives. All three of the major US indexes saw gains, with the S&P 500 setting a new high on encouraging economic data. In the US, weekly jobless claims decreased more than anticipated, pointing to a stable labor market, while Q2 GDP growth of 3% was reaffirmed.

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