Record Highs for Sensex and Nifty as IT Stocks Lead the Surge

Record Highs for Sensex and Nifty as IT Stocks Lead the Surge
Thursday's market performance witnessed a historic closing for the S&P BSE Sensex, concluding the session at an impressive 70,514.20, up by a substantial 929.60 points. Simultaneously, the NSE Nifty50 soared to new heights, settling at 21,182.70, a commendable gain of 256.35 points. The broader market indices echoed this success, ending the day with remarkable gains.
The driving forces behind this bullish trend were the favourable rate outlook from the US Federal Reserve and a robust rally in information technology (IT) stocks. Notably, the Nifty IT index emerged as the frontrunner among all sectoral indices, registering an impressive 3.5% surge. Additionally, heavyweight indices like Nifty Bank and Nifty Financial Services posted gains of 1.3%.
Leading the pack on the Nifty 50 were top gainers Infosys, Tech Mahindra, LTIM, Wipro, and HCLTech. On the flip side, the day's top drags included Power Grid, HDFC Life, Nestle India, Cipla, and JSW Steel.
IT stocks took centre stage during the trading session, responding to the US Federal Reserve's decision to maintain unchanged interest rates while hinting at a potentially accelerated rate cut in 2024.
The domestic market's positive momentum was further fueled by renewed confidence from foreign institutional investors, particularly in the aftermath of the recent assembly election results. Analysts are optimistic about near-term gains in the domestic stock markets, citing multiple positive developments.
Deven Mehata, a research analyst at Choice Broking, highlighted, "After a significant gap-up opening, the Nifty traded on the higher side for the whole day on its weekly expiry, reaching a new all-time high of 21,210.90."
Aditya Gaggar, Director of Progressive Shares, added, "With a bullish gap, the Nifty50 has breached its congestion zone, implying the continuation of the current uptrend. The downside is protected at 21,020, while on the flip side, 21,400 can act as resistance."