The Nifty IT index hit a record high in today’s session, responding to positive cues from the US Federal Reserve. The Federal Open Market Committee (FOMC) decided to keep its key interest rate steady at 5.25-5.5% on Wednesday, in line with expectations. However, the notable change came in the form of a more dovish outlook, indicating a possible 75 basis point cuts in 2024, as opposed to previous projections.
Also Read: US Federal Reserve policy: Here are 10 key updates from the outcome of the FOMC meeting
This forward-looking outlook, especially the anticipation of significant tariffs, has triggered a rally in Indian IT stocks. Considering the pivotal role that the US plays as a key market for Indian IT companies, with a large part of their revenues tied to this region, the projections of tax cuts particularly influenced the positive market sentiment.
The Nifty IT index started today’s trade with a gap at 33,451 points compared to the previous closing price of 33,066, and strengthened to reach a new record high of 34,100 points gaining 3.12%.
All 10 components of the index are currently trading in the green, with Mphasis leading the way with a notable rally of 4.2% at ₹2,527 each.
Closely followed by Coforge (up 2.9%), HCL Technologies (up 2.8%), L&T Technology Services (up 2.6%), Persistent Systems (up 2.5%), Tech Mahindra (up 2.3%), LTIIndtree (up 2.1%), Wipro (up 1.9%), Infosys (up 1.9%) and TCS (up 1.7%).
Notably, six stocks, including Mphasis, Coforge, Persistent Systems, HCL Technologies, L&T Technology Services and LTIMindtree, hit new all-time highs in the trade.
Also Read: Nifty, Sensex open at record highs after US Federal Reserve keeps interest rates unchanged and hints at 3 rates.
Today’s impressive rally propelled the Nifty IT index to a 19% year-to-date gain, marking a notable contrast to the 26% fall witnessed in CY22.
Key benchmark indices once again reached record highs in today’s trade. The Nifty 50 soared to an unprecedented peak of 21,188 points, while the Sensex touched a significant high of 70,381 points. The tax sensitive sectors like banking, financial services, real estate, autos and other consumer durables stocks are all trading in the green in today’s trading session.
Disclaimer: The opinions and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.
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Published: 14 Dec 2023, 10:08 IST
(tagsTo Translate)IT stocks