IT companies lead the gains on the Nifty and Sensex as they open higher; TCS rose over 3% on Q1 results.

IT Giants Propel Nifty and Sensex: TCS Surges Over 3% Post Q1 Results

Written by: Supriya Kadu

Edited by: Pinky Deshmukh

Last Updated: July 12, 2024

Summary: By 9:15 am, the S&P BSE Sensex gained 0.25% to 80,093.62 points, while the NSE Nifty 50 gained 0.3% to 24,387.95.

Stock Market News: The US Federal Reserve's anticipated rate cut next month and the IT industry's excellent performance helped benchmark indices start the morning on a bullish note.

At 9:15 am, the S&P BSE Sensex gained 0.25 percent, or 80,093.62 points, while the NSE Nifty 50 gained 0.3%, to 24,387.95. All 10 of the sector's constituents posted advances as the IT index increased by a noteworthy 1.6%.

A leading IT services provider in India, Tata Consultancy Services (TCS), made a significant donation to the event. The firm's share price increased by 2% when it revealed a revenue beat for the June quarter. TCS was downgraded from "hold" to "buy" by Jefferies analysts, who noted the company's return to growth in important verticals and markets and its seven-quarter high in net hiring.

The excitement about a potential rate decrease of 25 basis points by the US Federal Reserve is responsible for the increase in IT equities. Following a surprising decline in US consumer prices for June, the likelihood of this cut rose to 85% from 70% the day before, per CME FedWatch. Jerome Powell, the chair of the Federal Reserve, had previously stated that "more good data" would bolster the case for interest rate reductions.

In June, retail inflation in India is likely to be close to 5%, which is in line with the Reserve Bank of India's estimates but still beyond the 4% objective for contemplating rate reductions, despite the bullish feeling in the market. The data is expected to be revealed later today.

Stocks to watch:

Adani Ports: plans to invest $1.2 billion in a new transshipment terminal.
Jio Financial: Received central bank approval to transition from a non-banking financial organization to a core investment company.
Mahindra & Mahindra: reported an 11.5% year-on-year rise in total vehicle sales for June.
HCL Technologies: India's third-largest software services company, is due to report its first-quarter earnings after the market closes.

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