Nifty All Time High: Nifty made a bullish record, enthusiasm was seen in IT, know why there was a storm in the market.
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Nifty At All Time High: A stormy rise is being seen in the Indian stock market today. Nifty has made its first record of the year 2024. National Stock Exchange Index nifty Has reached new heights. During trading, it jumped 180 points at 11 am and touched the highest level of 21,848.20 points. This morning, domestic equity benchmark Nifty 50 opened at 21,773.55 compared to the previous closing level. After this, a rise of about one percent was seen in the index. There was a rise in the shares of 28 out of 50 companies of Nifty 50. Whereas, a decline was seen in 22 shares. Infosys shares saw the highest rise of 7.63 percent on Nifty. At the same time, a rise of 4.36 percent was seen in the shares of Wipro and 4.29 percent in Tech Mahindra. On the other hand, Sensex opened at 72,148.07 against its previous close of 71,721.18 and rose over one per cent to its intraday high of 72,447.78. On January 1 this year, the Sensex had reached its all-time high of 72,561.91.
Four main reasons for the rise in Nifty 50
Strong rise in IT shares
After the December quarter earnings of TCS and Infosys, most of the IT stocks gained strongly. In morning trade, the Nifty IT index jumped more than 5 per cent to hit a new 52-week high of 36,482.25. After the December quarter earnings results came out, shares of Infosys and TCS saw strong gains. Infosys reported a consolidated net profit of ₹6,106 crore, down more than 7 per cent from ₹6,586 crore in the year-ago period. Its consolidated revenue may grow by only 1.3 percent to ₹38,821 crore, from ₹38,318 crore in the same period last year. TCS reported consolidated revenue of ₹60,583 crore for the quarter ended December. This shows an increase of 4 percent on an annual basis. TCS’s revenue saw an increase of 1.5 percent.
Expectations of good earnings in the third quarter
Experts said that the market sentiment remains bullish due to the expectation of strong December quarter earnings. TCS and Infosys beat initial expectations of lower earnings in the IT sector and raised optimism that other sectors could also post strong results for the quarter.
Expectation of rate cut
Market sentiment has been positive due to expectations of rate cuts by the US Fed and RBI in the first half of 2024. Furthermore, India’s strong growth outlook is an important factor that keeps the market sentiment upbeat. Pankaj Pandey, Head of Research, ICICI Securities, said that the market sentiment has been positive recently. The Nifty 50 has seen some consolidation in the last few sessions but this has come as an opportunity to buy quality stocks. In January, Nifty will increase by 50 and 500 points and reach near the level of 22,300.
technical factors
According to brokerage firm ICICI Direct, Nifty 50 is going through a slow pace of retracement as in the last ten sessions it has lagged behind only 38.2 percent from the high of the last five sessions (20,977-21,801). ICICI Direct said that we believe that the ongoing relief after a spectacular rally of 16 percent in the last two months will keep the market healthy and pave the way for the next phase of rally as strong support is placed at 21300.
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