Nifty and Sensex headed for new highs as IT sector boost
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Summary: Indian IT firms, which draw a substantial percentage of their revenue from the United States, have led the surge in the last two weeks.
Stock Market News: With anticipation of a US interest rate decrease in September and solid performance in the information technology industry, benchmark indices are projected to open at all-time highs on Monday.
According to the GIFT Nifty, which was at 24,613 points as of 8:28 am, the NSE Nifty 50 is expected to begin higher than its previous closing position of 24,502.15. On Friday, the Nifty 50 and S&P BSE Sensex both closed at all-time highs, capping the sixth straight week of gains.
Over the past two weeks, Indian IT companies—whose income comes primarily from the US—have led the climb. Increased anticipation of a US rate decrease in September and mainly encouraging data from Tata Consultancy Services have reinforced this trend.
The likelihood of a 25 basis point rate decrease has increased to almost 90%, from roughly 70% a week ago, according to the CME FedWatch Tool. This increase is attributed to recent weak labor market and inflation data.
Following HCLTech's announcement of a 6.7% increase in June-quarter revenue and projected growth across the majority of verticals and geographies in the current quarter, the IT sector will continue to be in the spotlight on Monday.
According to Capitalmind Research analyst Krishna Appala, these findings have given the IT industry—where sentiment has been slow and values seem reasonable—a much-needed boost.
In the meantime, figures released on Friday revealed that a strong increase in food prices was the reason behind the first acceleration in domestic retail inflation in five months.
Asian stocks were down 0.3% on larger markets as investors dealt with political unpredictability in the wake of US presidential candidate Donald Trump's criticism.
Stocks to watch:
Avenue Supermarts: On Saturday, the company that runs the DMart chain of retail stores revealed a 17.5% increase in first-quarter net profit.
Cipla: The US pharmaceuticals authority has designated the company's Kurkumbh, Maharashtra, production facility as voluntary action indicated.
Lupin: The business declared that there had been no observations made during the US FDA inspection of its facilities.
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