IT Stocks Help Key Indices Pare Early Loss

Mumbai: Stock markets extended gains for the second day on Thursday helped by buying in IT, consumer durables and commodity stocks amid a largely positive trend in global markets. In a volatile trade, the 30-share index rose by 115.39 points or 0.15 per cent to settle at 76,520.38. The barometer started on a negative note dropping by 202 points to a low of 76,202.12. The index pared losses later and climbed 338.55 points or 0.44 per cent to hit a high of 76,743.54. The broader NSE Nifty rose by 50 points or 0.22 per cent to end at 23,205.35. The market capitalisation (mcap) of BSE-listed companies rose by Rs2,75,359.24 crore to Rs4,24,63,686.80 crore or $4.91 trillion.

“Uncertainty lingers whether the trade tariff measures will affect global trade, instigate higher inflation, and currencies volatility. The trend holds a declining momentum YTD with a pause today contemplating the upcoming 2025 budget, which has a muted expectation. Meanwhile, in-line with Q3 results showcasing QoQ growth to the indices, it’s suggesting that Q4 will be much better,” Vinod Nair, head (research), Geojit Financial Services.

In broader markets, the BSE smallcap index rose 0.67 per cent and midcap gauge jumped 1.78 per cent.

“Despite a tepid start during the day, the benchmark soon gave up its losses after a surge led by gains in IT helped the indices recover. The sector’s sentiments were further buoyed by optimism surrounding President Donald Trump’s private-sector investment plan for AI infrastructure. However, the gains experienced a holdback driven by concerns over moderation in earnings,” said Ameya Ranadive Chartered Market Technician, CFTe, Sr Technical Analyst, StoxBox.

Among BSE sectoral indices, Consumer Durables rose the most by 1.95 per cent, Commodities by 1.86 per cent, Focused IT by 1.79 per cent, Information Technology by 1.51 per cent, Services 1.42 per cent and Consumer Discretionary and Healthcare went up 1.28 per cent each.

“An overall positive trend was also seen throughout the broader market. Sectorally, IT remained the key gainer, led by a positive earnings outlook and optimistic sectoral view,” Ranadive added.

On the other hand, Energy, Bankex and Oil & Gas were the only laggards. Overall, the market breadth was positive as 2,119 stocks advanced, while 1,842 declined and 106 remained unchanged on the BSE.

From the Sensex pack, UltraTech Cement, Mahindra & Mahindra, Sun Pharmaceutical, Zomato, Tech Mahindra, Tata Steel, Tata Motors, Titan, ITC and Bajaj Finance were the major gainers. In contrast, Kotak Mahindra Bank, HCL Technologies, PowerGrid, Reliance Industries, State Bank of India, Hindustan Unilever, IndusInd Bank, Nestle India and Axis Bank were among the laggards.

On the stock-specific front, UltraTech Cement gained approximately 6 per cent during the latter part of the trading session, led by positive earnings.

Investors’ wealth recovers by Rs 2.75 lakh cr

The market capitalization (mcap) of BSE-listed companies rose by Rs2,75,359.24 crore to Rs4,24,63,686.80 crore (Rs424.63 lakh cr or $4.91 trn)