As companies in the information technology sector continue to rally amid their Q3 results declaration, the Indian stock market has hit another record, with BSE Sensex crossing 73,000 and NSE Nifty crossing 22,000 points on Monday.
Sensex hit its new record-high at 73,108.31 during the early trade hours of January 15, while Nifty opened at its all time high of 22,053.15 on Monday, after closing at 21,189 the previous market session last week.
Early trade hours on Monday saw a major boom for both Sensex and Nifty, with IT companies rallying hard since the release of the strong Q3 results of several firms. One of the biggest contributors to the Sensex boom today is Wipro, with its shares rallying over 14 percent.
Shares of Wipro on Monday jumped nearly 14 per cent, adding ₹18,168.68 crore to its market valuation, after the IT company’s December quarter earnings beat estimates. Wipro became the top gainer of January 15 during early trade hours, while firms like Tech Mahindra, HDFC Bank and SBI trailed slightly behind.
Stocks such as Wipro, Tata Consultancy Services (TCS), HCL Technologies and Infosys have greatly contributed to Sensex and Nifty hitting their all time high on Monday, primarily due to their Q3 results being declared this month.
How IT firms are leading to Sensex, Nifty boom
V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services pointed out that the boom in the Indian stock market is caused by IT stocks being driven up over the last few weeks, primarily because of the Q3 results.
HCL Technologies on Friday reported 6.2 per cent increase in consolidated net profit at ₹4,350 crore, highest ever on a quarterly basis, in the three months ended December 2023 on the back of growth in both services and software businesses.
“The rally in the market, primarily driven by momentum, is now getting support from fundamentals. The sharp bounce in large cap IT stocks on the back of slightly positive management commentary indicates that an underperforming segment can surprise on the upside on news of a turnaround in the sector,” Vijaykumar said.
The Q3 results of several big tech and IT firms are still due in January 2023, which is expected to drive up markets till the end of the month.
(With inputs from PTI)
