Sunday, June 16, 2024

TCS buyback boosts IT stocks as Nifty logs 2nd day of gains

Nifty finished the day on a winning note, while most sectoral indices closed in the green.

Following TCS’s announcement of buyback at Rs 4,150, Nifty IT surged by 2.69 per cent and became one of the top-performing sectors, said Vaibhav Vidwani, Research Analyst at Bonanza Portfolio.

The Nifty50 closed at 19,765.20 on Thursday, higher by 89.75 points or 0.46 per cent, while the Sensex advanced 306.55 points or 0.47 per cent to end at 65,982.48.

The market was in the green on Thursday due to the positive sentiment that pervaded around the world due to a drop in the global inflation data for October, Vidwani said.

Reliance Industries Ltd’s stock increased by 0.7 per cent following a significant block deal. In a series of exchanges, 1.06 million shares changed hands, according to Bloomberg.

The top gainers on the Nifty were Hero MotoCorp, Tech Mahindra, TCS, HCL Technologies and Infosys, while the losers were Axis Bank, Coal India, Power Grid Corporation, Tata Consumer Products and Adani Enterprises.

Vinod Nair, Head of Research at Geojit Financial Services, said the Indian market continued its positive resurgence, tracking global gains. Softer than expected US inflation data and easing bond yields has bought optimism that spending will emerge like in technology, he said.

Taking the cues further, IT stocks showed a significant jump in the broader market. The market is sensing that exports based sectors like IT and pharma could be future winners, while cut in inflation will also benefit domestic placed staples and consumer sectors, Nair said.

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