Deal Bonanza Boosts IT, Lifts Markets: Sensex Hits New High, Nifty Eyes 22,000

12 Jan 2024 , 01:09 PM

At 1 PM, the Sensex displayed a robust performance, surging by 771.90 points or 1.08 percent, reaching 72,493.08. Simultaneously, the Nifty recorded an upward movement of 206.20 points or 0.95 percent, touching 21,853.40. The market witnessed 1918 advancing shares, 1300 declining shares, and 63 unchanged shares.

This significant upswing was primarily attributed to the remarkable performance of information technology stocks. The sector experienced a surge following the release of December quarter results by industry giants Tata Consultancy Services and Infosys. The positive outcome kindled optimism about enhanced earnings in the forthcoming quarters, particularly due to strong new deal wins.

Despite the seasonally weak quarter, both companies reported decent numbers. However, it was the revelation of robust new deals that fueled optimism across the market, with expectations of these deals translating into revenue in the coming quarters.

Furthermore, the anticipation of interest rate cuts continued to foster hopes of a more favorable macro environment for the sector. This, in turn, is expected to provide additional support for the sector’s recovery from the recent earnings downgrade cycle.

In terms of sectoral performance, the IT index witnessed an impressive 5 percent increase, followed by a 2 percent rise in the realty index and a 1 percent uptick in the oil & gas index.