Sensex, Nifty soar to life-time highs on rally in IT, financials stocks

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Mumbai, Jul 15 (PTI) Benchmark indices Sensex and Nifty on Thursday raced to close at life-time high levels on the back of gains in index majors HDFC Bank, L&T and HCL Tech amid signs of recovery in earnings.

The 30-share BSE index rose by 254.75 points or 0.48 per cent to close at its life-time high of 53,158.85. It touched a record intra-day peak of 53,266.12.

The broader NSE Nifty rose by 70.25 points or 0.44 per cent to a record of 15,924.20. It hit a record intra-day peak of 15,952.35.

HCL Tech was the top gainer in the Sensex pack, rallying over 5 per cent, followed by L&T, Tech Mahindra, HDFC Bank, UltraTech Cement, ITC and Tata Steel.

On the other hand, Bharti Airtel, M&M, Asian Paints, Titan and Sun Pharma were among the laggards.

'As global investors digest inflation data and the US Fed commentary, Dalal Street bulls were seen betting on economic recovery as IT stocks continue to power the indices to new highs,” said S Ranganathan, Head of Research at LKP Securities.

Markets seemed in no mood to oblige investors waiting on the sidelines for a correction as sector rotation played its part during the session. Capital Goods made a smart comeback across market capitalisation and the broader market was buzzing with action across cement, real estate and pharma names, he added.

'Indian indices extended gains to all-time high supported by positive Asian market and rally in Reality, IT, Financials and Metals stocks, in anticipation of robust Q1 earnings & recovery in demand,' Vinod Nair, Head of Research at Geojit Financial Services.

Asian markets were positive as China reported better than projected economic data and the global market was boosted by the accommodative stance in the Fed official’s statement, reducing risk of change in rates, Nair added.

Sectorally, BSE realty, capital goods, IT, industrials, metal, basic materials and bankex ended up to 4 per cent higher.

On the other hand, oil and gas, telecom, energy and auto indices declined up to 0.87 per cent.

Broader midcap and smallcap indices rose up to 0.43 per cent.

Binod Modi, Head Strategy at Reliance Securities said that continued rebound in IT stocks followed by financials supported today’s rally.

'We note strong revenue performance and strong deal wins reported by key IT companies in 1QFY22 attracted investors toward IT pack. Baring auto, pharma and PSU Banks, buying momentum was visible in most of key sectors,' Modi said.

Realty stocks witnessed sustained rebound due to better-than-expected improvement in operational performance of real estate companies in the first quarter of FY22.

HCLT, L&T, Tech Mahindra and Wipro were among top Nifty gainers, while ONGC, Eicher Motors, Coal India and Bharti Airtel were laggards.

Elsewhere in Asia, bourses in Shanghai, Seoul and Hong Kong ended with gains, while Tokyo was in the red.

Stock exchanges in Europe were, however, trading on a negative note in mid-session deals.

Meanwhile, international oil benchmark Brent crude declined 0.70 per cent to USD 74.24 per barrel. PTI ANS MR MR

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