Indices zoom to record high on buying in IT, hope for Fed rate cut

A rally in Reliance Industries and Infosys further fueled this momentum

MUMBAI: Both the Sensex and Nifty reached record highs on Friday, bolstered by significant buying in IT and tech shares, alongside strong rumors of a potential rate cut by the US Federal Reserve. A rally in Reliance Industries and Infosys further fueled this momentum.

The BSE Sensex surged by 622 points or 0.78% to close at a record level of 80,519.34. In intra-day trading, the index saw a spike of 999.17 points or 1.24%. Similarly, the NSE Nifty climbed 186.20 points or 0.77% to close at a record high of 24,502.15, reaching an intra-day peak of 24,592.20 with a surge of 276.25 points or 1.13%.

For the week:

• The BSE benchmark rose by 522.74 points or 0.65%.
• The Nifty increased by 178.3 points or 0.73%.

The positive earnings report from Tata Consultancy Services (TCS), the largest player in IT services, contributed significantly to market sentiment. TCS reported an 8.7% growth in net profit for the June quarter at Rs 12,040 crore. This, combined with a one-year drop in US inflation, lifted shares across various segments, according to the research head of a leading brokerage.

In addition to TCS, major gainers in the Sensex basket included Infosys, HCL Technologies, Tech Mahindra, Axis Bank, Reliance Industries, JSW Steel, Bajaj Finance, and Larsen & Toubro. Conversely, Maruti, Asian Paints, Titan, Kotak Mahindra Bank, Bharti Airtel, and ICICI Bank were among the laggards.

In sectoral performance:

• IT surged by 4.32%.
• Tech stocks (teck) zoomed 3.29%.
• Energy rose marginally by 0.13%.
• Banks increased by 0.10%.
• Services saw a minor uptick of 0.06%.

On the other hand, sectors such as realty, power, metal, utilities, auto, industrials, and consumer discretionary faced declines.

In the broader market:

• The BSE midcap gauge declined by 0.22%.
• The smallcap index dipped by 0.13%.