Sensex, Nifty close at record highs powered by IT shares

Markets at record high: The Indian equity benchmarks surged to unprecedented heights on Monday, primarily driven by gains in leading information technology stocks. The Nifty 50 index crossed the 22,100 mark for the first time, while the Sensex soared above 73,400 level. The Sensex hit a record high of 73,402.16, marking an increase of 834 points, while the Nifty 50 index touched an all-time high of 22,115.55, witnessing a surge of up to 221 points.

The Sensex ended 759 points higher at 73,327.94 and Nifty 50 index climbed 203 points to close at 22,097.45

The swift rally in the stock market is noteworthy, with the Nifty taking 20 sessions to advance from 21,000 to 22,000 and 30 sessions to move from 20,000 to 22,000, as per data from the stock exchange.

Image credit: Republic

The current record-breaking rally can be attributed to the impressive performance of IT shares, following better-than-expected earnings reports for the December quarter. TCS and Infosys surprised the market last Thursday, and Wipro continued the trend by reporting better-than-expected revenue for the seasonally weak December quarter. Wipro's revenue of Rs 22,205 crore surpassed the analysts' average estimate of Rs 22,104 crore, driven by improved deal momentum. The company anticipates its March-quarter IT services revenue to range between $2.62 billion and $2.67 billion in constant currency terms.

HCL Technologies also contributed to the market rally, with its third-quarter net profit rising 6.2 per cent to Rs 4,350 crore, surpassing analysts' estimates. The company's revenue rose 6.5 per cent to Rs 28,446 crore, exceeding Street estimates of Rs 28,126 crore. Consequently, Wipro's shares surged by 10 per cent, and HCL Technologies witnessed a 4 per cent increase.

Market buying was widespread across sectors, with the Nifty IT index leading with a gain of 1.86 per cent. Additionally, Nifty Bank, Financial Services, PSU Bank, Private Bank, and Pharma indices also registered increases between 0.5-1 per cent.

"Market started the week on an upbeat note and gained nearly a percent, in continuation to Friday’s move.  The IT majors were on the front foot at the opening trade and the move further cascaded to select heavyweights from the banking and energy basket as the day progressed. Consequently, the Nifty index settled around the day’s high at 22,097.45 level. The broader indices also inched higher and posted modest gains," said Ajit Mishra, SVP at Religare Broking

"Nifty may take a breather around 22,150 however the tone is likely to remain positive. We are closely eyeing the performance of banking majors for cues as others have done their part in the recent surge. A decisive break above 48,400 in the banking index could prompt the index to a newer high," he added.

While most of the market saw positive momentum, select metal shares faced a mild selling pressure. Mid- and small-cap shares also garnered buying interest, with Nifty Midcap 100 and Smallcap 100 indices rising by 0.5 per cent each.

Wipro emerged as the top Nifty gainer, with a gain of over 6 per cent. Other notable gainers included Tech Mahindra, HCL Technologies, LTIMindtree, Infosys, TCS, State Bank of India, HDFC Bank, ONGC, Titan, and Apollo Hospitals, with gains ranging from 0.7-7 per cent.

On the downside, HDFC Life saw a decline of 3 per cent following uninspiring earnings. Bajaj Finance, Bajaj Finserv, Hindalco, Eicher Motors, Larsen & Toubro and Tata Consumer Products were also among the notable laggards.

In terms of market breadth, the overall scenario was positive, with 2,102 shares ending higher while 1,8,42 declining on the BSE.