IT index rises 4.2% as large-caps join rally
Metal stocks also firming up on expectations of rebound in China
image for illustrative purpose
New Delhi: A significant trend in the market is the strength in IT index, which is up 4.2 per cent in a week, says VK Vijayakumar, chief investment strategist at Geojit Financial Services.
Mid-cap IT has been doing well and now large-caps like HCL Tech, Infosys and Wipro have joined the rally. The order pipeline of IT companies is expected to improve on the back of the expected soft landing of the US economy, he said.
Metal stocks also are firming up on expectations of rebound in China following the stimulus measures announced to revive the Chinese property market. But there is no room for too much optimism here since the Chinese property market is in deep trouble and recovery would be difficult, he said.
Brent crude at $89 and the poor monsoon are areas of concern. Good inflows into mutual funds is reflected in the strong buying by DIIs who have been buyers for Rs4,900 crore in the last two trading sessions, he added.
