The Nifty index reached a new record high, climbing 190 points, with the biggest contribution coming from information technology stocks, which saw a significant increase of 3-7 percent. The Nifty IT index emerged as the top gainer among sectors, rising by a substantial 4.75 percent.
On January 12, the benchmark Nifty continued its upward trajectory, hitting an unprecedented high of 21837.85 points, while the Sensex fell just 160 points short of its own peak.
The remarkable surge was primarily driven by the performance of information technology stocks following the release of December quarter results by two industry giants – Tata Consultancy Services and Infosys. These results have reignited optimism for improved earnings in the upcoming quarters, especially in light of strong new deal wins.
Both companies delivered solid numbers in a traditionally slow quarter, but it was their robust new deals that injected hope across the market, with expectations that these wins will translate into revenue in the near future.
Furthermore, the anticipation of interest rate cuts has continued to bolster prospects for a more favorable macro environment for the sector. This is expected to further aid its recovery from the recent decline in earnings.
"Infosys' overall Q3 performance is broadly in line with expectations. The Total Contract Value (TCV) wins of $3.2 billion are a positive surprise, despite the cancellation of a major deal. We view Infosys' Q3 earnings as stable in a seasonally weak quarter and shift our focus to earnings improvement in FY25/26, as headwinds bottom out for the sector," remarked Sanjeev Hota, head of research at ShareKhan by BNP Paribas.
On January 12, the benchmark Nifty continued its upward trajectory, hitting an unprecedented high of 21837.85 points, while the Sensex fell just 160 points short of its own peak.
The remarkable surge was primarily driven by the performance of information technology stocks following the release of December quarter results by two industry giants – Tata Consultancy Services and Infosys. These results have reignited optimism for improved earnings in the upcoming quarters, especially in light of strong new deal wins.
Both companies delivered solid numbers in a traditionally slow quarter, but it was their robust new deals that injected hope across the market, with expectations that these wins will translate into revenue in the near future.
Furthermore, the anticipation of interest rate cuts has continued to bolster prospects for a more favorable macro environment for the sector. This is expected to further aid its recovery from the recent decline in earnings.
"Infosys' overall Q3 performance is broadly in line with expectations. The Total Contract Value (TCV) wins of $3.2 billion are a positive surprise, despite the cancellation of a major deal. We view Infosys' Q3 earnings as stable in a seasonally weak quarter and shift our focus to earnings improvement in FY25/26, as headwinds bottom out for the sector," remarked Sanjeev Hota, head of research at ShareKhan by BNP Paribas.
