News

Published: November 17, 2023
Updated: November 17, 2023

Tech Surge Propels Indian Markets to Second Consecutive Rally on 16th Nov, Thursday

Equity indices Sensex and Nifty experienced a second day of upward momentum, fueled by substantial gains in IT, tech, and consumer durable shares. This surge was accompanied by a mixed trend in global equities and boosted by softer-than-expected US inflation data and easing bond yields.

Market Highlights:

The 30-share BSE Sensex rose 0.47%, gaining 306.55 points to settle at 65,982.48, while the Nifty climbed 0.46%, adding 89.75 points to reach 19,765.20. Notably, the Sensex had jumped 1% to 66,358.37 during the day, reflecting the market's positive resurgence.

Global Factors Driving Optimism:

The optimism in equity markets stems from softer-than-expected US inflation data and a decrease in bond yields. This has prompted speculation that spending will increase, particularly in technology. The market sentiment suggests a belief that export-oriented sectors like IT and pharma may emerge as future winners. Additionally, reduced inflation is expected to benefit domestic staples and the consumer sector.

Sectoral Performance:

IT stocks led the charge with a remarkable 2.59% surge, followed by a 2.13% rally in the tech sector. Other sectors contributing to the positive trend included healthcare (0.98%), realty (0.98%), oil & gas (0.84%), telecommunication (0.68%), and consumer discretionary (0.64%). However, FMCG, bankex, and metal sectors experienced lagging performance.

Key Gainers and Losers:

Tata Consultancy Services, HCL Technologies, Tech Mahindra, Infosys, Bajaj Finance, NTPC, Mahindra & Mahindra, and Bajaj Finserv were among the major gainers in the Sensex firms. On the flip side, Axis Bank, Power Grid, ITC, and ICICI Bank faced declines.

Broader Market Trends:

In the broader market, the BSE midcap and smallcap indices both saw a 0.52% jump, reflecting the overall positive sentiment.

Global Landscape:

While Seoul settled in the green, Tokyo, Shanghai, and Hong Kong ended lower in Asian markets. European markets exhibited a mixed note, while the US markets closed with gains on Wednesday.

Oil Prices and Foreign Investments:

Global oil benchmark Brent crude declined by 0.54% to USD 80.74 a barrel. Foreign Institutional Investors (FIIs) turned buyers, injecting Rs 550.19 crore into equities on Wednesday.

Market Analyst's Perspective:

Market analysts suggest that the upsurge in IT and realty stocks played a crucial role in maintaining the market's upward bias. The moderation of inflation in the US is seen as a signal that the Federal Reserve may conclude rate hikes, contributing positively to global markets. Additionally, signs of economic recovery, such as improved export numbers, have heightened market sentiment, sparking renewed buying interest in recent sessions.

The Indian equity markets showcased resilience and optimism, driven by favourable global cues, robust sectoral performances, and encouraging economic indicators. The upward momentum, especially in technology-related sectors, positions the market for potential future gains, while the moderation in inflation adds a positive outlook to the overall economic landscape.