Frontline equity indices, the Sensex and the Nifty 50, snapped their two-day losing run on Friday, January 16, with shares of IT heavyweights, including Infosys, TCS, and Tech Mahindra, leading among the gainers.
The Sensex closed 188 points, or 0.23%, higher at 83,570.35, while the Nifty 50 settled at 25,694.35, up 29 points, or 0.11%.
The gains in the benchmarks can be largely attributed to IT and banking heavyweights. The top five gainers in the Nifty 50 index were the IT stocks. Sentiment toward IT stocks improved after Infosys raised its revenue growth projections. Banking stocks gained on the prospects of healthy Q3 earnings.
Indian stock market: 10 key highlights from the day
1. What drove the Sensex, Nifty 50 higher today?
Frontline indices ended higher due to gains in select IT and banking heavyweights. Infosys ended as the top contributor to the gains in the Sensex index after the IT major posted better-than-expected Q3 results. TCS, Tech Mahindra, and HCL Tech, too, were among the top contributors to the rise in the benchmark index.
From the banking space, HDFC Bank and SBI were among the top supports for the index.
“The equity markets witnessed positive momentum during the session, driven by better Q3 results from IT and mid-segment banking stocks. However, profit booking towards the close capped the rally, resulting only in marginal gains for the market,” Vinod Nair, Head of Research, Geojit Investments Limited, noted.
“The IT sector outperformed, supported by an upward revision in revenue growth projections from a leading industry bellwether, coupled with expectations of increased technology spending. Meanwhile, investor focus also shifted to banking counters, as early results reflected notable improvements in asset quality and margin profiles, further strengthening sentiment in the sector,” said Nair.
2. Top gainers in the Nifty 50 index
Infosys (up 5.58%), Tech Mahindra (up 5.26%), Wipro (up 2.54%), HCL Tech (up 2.41%) and TCS (up 2.34%) were the top five gainers in the Nifty 50 index.
3. Top losers in the Nifty 50 index
Cipla (down 2.54%), Jio Financial Services (down 3.15%), and Eternal (down 3.76%) ended as the top losers in the index.
4. Sectoral indices today
Nifty IT index jumped 3.34%, while Nifty Bank (up 0.86%) and PSU Bank (up 1.16%) also clocked healthy gains.
On the other hand, Nifty Pharma (down 1.28%), Healthcare (down 1.15%), and Consumer Durables (down 1.11%) suffered significant losses.
5. Most active counters in terms of volume
Vodafone Idea (55.4 crore shares), Tata Silver Exchange Traded Fund (30 crore shares), and IFCI (25 crore shares) were the most active counters in terms of volume on the NSE.
6. Nine stocks jump more than 15% on the BSE
AuSom Enterprise, Vardhman Polytex, and Antony Waste Handling Cell were the nine stocks that surged more than 15% on the BSE.
On the other hand, Silver Pearl Hospitality and Nexome Capital Markets were the two stocks that crashed more than 15% on the BSE.
7. Advance-decline ratio
The advance-decline ratio settled in favour of decliners as over 1,850 stocks advanced while over 2,350 declined on the BSE.
8. Over 80 stocks hit 52-week highs
Some 84 stocks, including SBI, Axis Bank, and Tata Steel, hit their 52-week highs in intraday trade on the BSE.
9. 260 stocks hit 52-week lows
As many as 260 stocks, including ITC, Tube Investments of India, and Dixon Technologies (India), hit their 52-week lows on the BSE.
10. Nifty’s technical outlook
According to Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities, the 100-day EMA zone of 25,600-25,550 will act as an immediate support.
“Any sustained move below the 25,550 level could lead to the index extending its weakness further down towards the 25,400 level, followed by 25,250. On the upside, the 50-day EMA zone of 25,850-25,900, which also coincides with the rising trendline zone, will act as an immediate resistance,” said Shah.
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Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
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