Sensex gains over 70,500, Nifty ends near 21,200 as IT stocks surge

Benchmark stock market indices ended Thursday’s trading session on a strong note, supported by the US Federal Reserve’s rate outlook and a sharp rally in information technology (IT) stocks.

The S&P BSE Sensex ended 929.60 points higher at 70,514.20, while the NSE Nifty50 was up 256.35 points to settle at 21,182.70. Broader market indices also ended the trading session with stellar gains.

The Nifty IT index was the leader among all other sectoral indices, rising 3.5 per cent. Other heavyweight indices such as Nifty Bank and Nifty Financial Services also gained 1.3 per cent.

Infosys, Tech Mahindra, LTIM, Wipro and HCLTech were the top five gainers on the Nifty 50, while the top drags were Power Grid, HDFC Life, Nestle India, Cipla and JSW Steel.

IT stocks dominated proceedings during the session, following the US Federal Reserve’s decision to keep interest rates unchanged while hinting at faster-than-expected rate cuts in 2024.

Domestic stock markets have also been supported by foreign institutional investors, who have regained confidence in the domestic market after the recent assembly election results. According to analysts, the domestic stock markets are likely to witness near term gains, based on multiple positive developments.

Deven Mehata, research analyst at Choice Broking, said, “After a big gap-up opening, the Nifty traded on the higher side for the whole day on its weekly expiry, reaching a new all-time high of 21,210.90.”

Meanwhile, Aditya Gaggar Director of Progressive Shares, said, “With a bullish gap, the Nifty50 has breached its congestion zone which implies continuation of the current uptrend with the downside being protected at 21,020, and on the flip side, 21,400 can act as a resistance.”