The majority of sectoral indices tracked in the green in early trade on Tuesday, as Indian stock indices continued to hold steady. The benchmark indices Sensex and Nifty closed at 65,775.44 and 19,579.00, respectively, up 0.2-0.3% from the previous day.
“A significant trend in the market is the strength in IT index which is up 4.2 per cent in a week. Mid-cap IT has been doing well and now large-caps like HCL Tech, Infosys and Wipro have joined the rally. The order pipeline of IT companies is expected to improve on the back of the expected soft landing of the US economy,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Indian stock markets finally ended a five-week losing streak and gained nearly a per cent last week.
The Indian economy’s strong 7.8% GDP growth rate in the first quarter of 2023–2024 is likely to have boosted investor confidence recently. India continues to have the fastest-growing major economy, with a GDP growth of 7.8%. In light of this, Morgan Stanley has increased their economic growth forecast for India for the fiscal year 2024 after data from the April-June quarter showed the country expanded at its fastest rate in a year. The international investment bank increased its growth prediction from its initial estimate of 6.2 percent to 6.4 percent.