- By Aditya Pratap Singh
- Fri, 12 Jan 2024 03:14 PM (IST)
- Source:JND
Stock Market all-time high: The domestic market Nifty 50 rose over one per cent to its all-time high in morning trade on Friday. Nifty 50, the index of top 50 stocks on the NSE, opened at 21,773.55 and touched a new high of 21,897.10 against the previous close of 21,647.20. On the other hand, BSE's Sensex opened at 72,148.07 against the previous close of 71,721.18 and rose one per cent to hit a record high of 72,619.81.
Shares of IT companies including Infosys, Tech Mahindra, Wipro, TCS and HCL Tech were the top gainers on the Sensex index. Meanwhile, BSE Midcap and Smallcap indices touched new record highs of 37,941.29 and 44,644.04 respectively during the session.
Below are the reasons behind today's rally
IT stocks gain
The biggest trigger for the market rally was strong buying interest in IT stocks after Infosys reported inline December quarter results and TCS surprised favourably.
Expectations for healthy Q3 earnings
Market sentiment was buoyed by strong earnings expectations for the December quarter. TCS and Infosys, in their latest quarterly result, beat early expectations of lower revenues in the IT sector.
Global market trends
Japan's Nikkei stock average hit a 34-year high on Friday, while the US market was little changed overnight on higher-than-expected inflation.
Buying In PSU and DII Buying
Nifty PSU Bank and Nifty Realty both rose over 2 per cent as investors remained bullish on their positive growth outlook in the near term.
With continued inflows into mutual funds and buying by retail investors, domestic investors are supporting the market. Market data on Thursday showed that domestic institutional investors were net buyers of over Rs 1,600 crore.
Us Fed rate cut expectation and India's positive growth forecast
Market sentiment is positive on expectations of US Fed and RBI rate cuts in the first half of 2024. Additionally, India's strong growth outlook is a key factor in keeping market sentiment buoyant. Major rating agencies have forecasted better growth of Indian Economy.