On January 12, the Nifty index reached a new all-time high of 21,837.85 points, bolstered by gains in information technology stocks. This surge was primarily due to impressive December quarter results from Tata Consultancy Services and Infosys, which raised expectations for better earnings in future quarters. These companies not only posted strong figures in a typically slow quarter but also secured significant new deals, sparking optimism in the market.
The anticipation of interest rate cuts also played a role in heightening hopes for a more favorable macroeconomic environment for the IT sector, aiding its recovery from previous earnings downgrades. Sanjeev Hota from ShareKhan by BNP Paribas commented positively on Infosys’ results and the potential for earnings improvements in the sector in the coming years.
At 11 am on the same day, the Sensex was also up by 682.92 points, or 0.95 percent, standing at 72,404.10. The market showed a positive trend, with a majority of shares rising. The gains in the IT sector were significant, contributing around 150 points to the Nifty’s overall increase. Infosys and TCS, being major players in the Nifty 50 index, significantly influenced this rise. The Nifty IT index also saw a substantial increase of 4.75 percent, reaching 36,386.00 points, with Infosys and TCS having a considerable impact due to their respective weightages in the index.