India’s benchmark stock indices, the Nifty and Sensex, reached new highs, boosted by significant gains in IT services firms following strong quarterly results and optimistic forecasts. The surge has alleviated concerns about the market’s weak demand.
As of 12:36 pm, the NSE Nifty 50 soared by 1.22%, reaching 21,911 points, while the S&P BSE Sensex rose by 1.31%, marking an all-time high at 72,661.
Key contributors to this surge were prominent IT companies, with Tata Consultancy Services witnessing a 4.3% climb and Infosys experiencing a substantial 7% surge. Both companies reported revenue figures for the third quarter that surpassed expectations, propelling the IT index approximately 5% higher.
Among the top gainers on the Nifty 50 index were Infosys, TCS, Tech Mahindra, Wipro, and HCLTech, recording impressive gains ranging from 3% to 7%.
The positive momentum in the Indian stock market comes in the wake of concerns about global economic conditions, including the slight uptick in US Consumer Price Index (CPI) inflation to 3.4% year-on-year. Despite these concerns, the robust performance of Indian IT firms has injected confidence into the equity market.
In Asian markets, Tokyo, Shanghai, and Hong Kong were trading higher, while Seoul quoted lower. Meanwhile, in the US, markets mostly closed in the green on Thursday.
On the commodities front, the global oil benchmark, Brent crude, registered a significant jump of 1.82%, reaching $78.82 per barrel. The overall positive sentiment in the equity market is reflective of the resilience and upward trajectory seen in various sectors, particularly the IT industry, contributing to the buoyancy of the Indian stock market.