Sensex Surges 720 Points, Hits All-Time High; Nifty Reaches Record Peak of 22,081.95: Key Market Milestone Achieved
Indian stock markets witnessed a sharp rise on Monday, reaching new all-time highs. The 30-share BSE Sensex surged by 720 points, touching a record peak of 73,288.78, while the broader NSE Nifty index rose over 187 points, reaching a new high of 22,081.95.
The surge in Indian stock markets resulted in the creation of approximately Rs 1.9 lakh crore in BSE market capitalization (m-cap). Investor wealth, measured by BSE m-cap, increased by Rs 1.92 lakh crore, reaching Rs 375.21 lakh crore. This marked a rise from the previous session’s valuation of Rs 373.29 lakh crore.
The surge in the stock market can be attributed to several factors, with a focus on the Information Technology (IT) sector. Here are key reasons behind the rise:
- Strong Performance of IT Stocks: The Nifty IT index saw a significant surge of 3.85%, with prominent IT companies like Wipro, Tech Mahindra, HCLTech, LTIMindtree, and Infosys leading the gains.
- Wipro’s Better-Than-Expected Revenue: Wipro Ltd witnessed a notable jump of 13.1% due to better-than-expected revenue in a seasonally weak quarter. This positive performance contributed to the overall bullish sentiment in the IT sector.
- Positive Earnings Reports: Other IT companies, including HCLTech, reported net profits above estimates, further boosting investor confidence in the sector.
- Previous Session’s IT Stock Rally: The IT sector had already shown strength in the previous trading session, with a 4.79% increase. Tata Consultancy Services (TCS) and Infosys played a crucial role in driving this momentum following their third-quarter results.
- Continued Rally in the Technology Sector: Analysts, such as Akshay Bhagwat, Senior Vice-President, Derivatives Research at JM Financial Services, suggest that the ongoing rally in the technology sector may persist, providing positive momentum for IT stocks.
- These factors highlight the significance of the IT sector in driving the overall market surge, reflecting positive sentiments among investors.
Continuing with the key reasons behind the surge in the stock market:
- Banks Lead the Way: The strong upward movement was supported by banking counters, particularly private lenders. HDFC Bank, an index heavyweight, emerged as the top gainer in the BSE pack. The positive performance of banking stocks, especially private players, contributed significantly to the overall market momentum.
- Railway Stocks in Limelight: Railway stocks gained attention as reports indicated a potential record rise in Budget allocation for the sector. Shares of Indian Railway Finance Corporation Ltd (IRFC) and Rail Vikas Nigam Ltd (RVNL) witnessed substantial gains, with both stocks surging up to 18.63%.
These factors demonstrate that the positive momentum extended beyond the IT sector, encompassing banking and railway stocks, and was further fueled by favorable news related to budget allocations in specific sectors.
