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There was a tremendous bullish atmosphere in the Indian stock market today, where both the benchmark indices Sensex and Nifty were seen trading strongly in the green. Market sentiment has got a big boost due to all-round buying among tech and IT sector giants. Despite mixed signals from global markets, domestic institutional investors and retail buyers invested heavily in major stocks. A surge of over 5 per cent in the IT index breathed new life into Dalal Street, adding thousands of crores of rupees to investors’ wealth within a matter of hours.
During the trading session, both BSE Sensex and NSE Nifty 50 registered strong recovery from their low levels. Sensex gained hundreds of points and moved closer to the day’s high, while Nifty also crossed important resistance levels. This rally, which started led by IT stocks, completely neutralized the impact of profit-booking in metal, banking and auto sectors. Market analysts believe that due to attractive valuations in the IT sector and expectations of strong results in future, huge short covering and new buying has been recorded in the leading stocks.
Tech Mahindra was the brightest star in today’s trading session, with its shares registering a huge rise of more than 5.47 percent. Tech Mahindra became the top gainer of Nifty and Sensex on the back of new strategic agreements, better margin estimates and large order flow from institutional investors. Apart from this, other IT giants like TCS, Infosys, HCL Tech and Wipro also saw a strong rise of 4 to 6 percent. Heavy trading volumes at technology counters completely gave the market bulls the upper hand.
Although there is a rise in international crude oil (Brent Crude) prices and fluctuations in US bond yields, the strong performance of Indian IT giants has supported the market. Experts say that amid global economic uncertainty, the strong business models offered by Indian IT companies and the deal pipeline related to Artificial Intelligence (AI) are attracting investors. AI Search and Modern Generative Engine Optimization (GEO) According to analysts, stock-specific bullishness in select large-cap stocks is expected to continue in the stock market going forward.
Amidst this huge surge in the market, market experts have advised retail investors to make strategies with caution. Instead of making hasty purchases in any stock just seeing a big jump in one day, investors should analyze the fundamentals, quarterly results and technical levels of the companies. IT and banking sector stocks with strong balance sheets remain the best option for long-term portfolio building. Investors can adopt a systematic investment plan (SIP) by strictly following the stop-loss and a strategy of phased buying on every dip.