Nifty IT at record highs with all stocks in a bull run; Index Heavyweight TCS climbs 2%; Infosys, LTI, HCL Tech add to gains

The index has touched a fresh record high of 28,347.50.

Jun 11, 2021 01:06 IST India Infoline News Service

Bull Running Up
As benchmarks Sensex and Nifty pull back from their historic highs that were witnessed in early deals of Friday, investors favoured technology stocks on Indian exchanges amid positive global cues. Major sectoral indices pared their early gains to enter a volatile session. Notably, this was not the case with IT stocks as it has recorded a strong rally with heavyweights emerging as top picks.

Technology stocks have been globally on a bullish note after concerns of rising inflation cooled down and expectations that consumer price pressure is likely to be transitorily resulting in scope for ongoing US central bank support. The tech-heavy Nasdaq closed at 14,020.33  up by 108.58 points or 0.78% overnight.

On Friday, technology stocks have supported the ASX to a record close for the second consecutive day. ASX has climbed as much as within about five points of its all-time high. Also, South Korean & Taiwan markets were lifted as technology stocks lead the gainers.

On the Indian markets, on NSE, at around 12.50 PM, the Nifty IT was trading at 28,308.35 up by 510.35 points or 1.84%. The index has touched a fresh record high of 28,347.50.

In percentage terms, Oracle Financial Services and Mphasis were top gainers soaring by 4.3% and 3.9% respectively. L&T Infotech also contributed to the winnings by climbing 2.6%.

Index heavyweight TCS made a significant addition to the Nifty IT gains. TCS skyrocketed by 2.3% after the company conducted its 26th annual general meeting (AGM) virtually. Tata Sons Chairman N Chandrasekaran said that TCS weathered the pandemic very well. While TCS' CEO and MD Rajesh Gopinathan stated that the company is gearing up for technological transformation across multiple industries.

Further, on Nifty IT, Coforge jumped by 2.2%. Other heavyweights like HCL Tech and Infosys advanced by 1.7% and 1.6% respectively. Tech Mahindra soared by 1.2%.

Mindtree and Wipro gained nearly 1% each.

On Thursday, the Labor Department announced that the US consumer price index rose 0.6% in May 2021, after increasing 0.8% in the previous month. In the 12 months through May, US inflation has accelerated 5% which is the biggest year-on-year increase since August 2008.

Even though US inflation has risen to its highest level in nearly 12-years. However, investors have started to align their sentiments on the Federal Reserve’s view that inflationary pricing pressures will remain temporary and if any changes in ultra-accommodative policy that will likely happen will be very gradually.

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