FIRST TRADE: Sensex rises over 300 pts, Nifty above 21,700 on buying in IT stocks

Stock market today: The Indian share market edged higher on Friday, January 12, amid strong buying in information technology (IT) stocks. Last seen, both indices were up over 0.35 per cent. The S&P BSE Sensex rose 277.5 points to 71,998.68, and the NSE Nifty soared 74.2 points to 21,721.45.

"With inline results from Infosys and better-than-expected results from TCS, IT stocks are seeing action today. Even though there is no positive message from the management commentary, the market is likely to respond positively to the absence of any bad news. But the upside for TCS and Infy will be limited since it will take time for clarity to emerge on the prospects for the sector in FY25," said Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

Dr. Vijayakumar added that resilience in IT stocks and strength in Reliance will enable Nifty to consolidate around 21,600 levels. HDFC Bank results on January 16 will be closely watched to ascertain the direction in the banking stocks ahead. The US CPI inflation inching up to 3.4 per cent year-on-year (YoY) is slightly negative from the global equity market perspective. The rate cut expected from the Fed in March this year may not materialise. It is likely to be postponed to June.

Meanwhile, the Nifty Mid Cap 100 and Small Cap 100 also opened in positive territory. High-beta Nifty Bank was up 0.24 per cent at 47,550.75.

BUZZING STOCKS

Infosys shares were up over 6 per cent a day after the company announced its Q3 results.

TCS shares were up over 3 per cent a day after the IT firm announced its Q3 results.

M&M shares were up over 2 per cent after Smallcap World Fund INC bought 36.15 lakh shares (0.58 per cent) at Rs 185.23 per share in the company.

Polycab shares were up over 2 per cent despite the Income Tax department conducting search and seizure operations at the company's premises from December 22 to December 30.

Goa Carbon shares were up over 3 per cent after the company said that its board will deliberate on Q3 results as well as fundraising via the rights issue at the meeting scheduled for January 16.

Bajel Projects shares were up over 1 per cent after the company bagged a new order worth around Rs 487.64 crore from Tata Power.

H.G. Infra Engineering shares were up over 3 per cent after the company was declared the lowest bidder by Central Railways for a project valued at Rs 716.11 crore.

Conversely, M&M shares were down 1 per cent a day after it released production, sales, and export figures for December 2023.

Plastiblends India shares were down over 7 per cent despite the company posting good Q3 results.

CONCOR shares were down over 1 per cent although in December, volume at the company increased from 10.85 lakh TEUs to 11.51 lakh TEUs, up 6.05 per cent over the year.

HDFC Asset Management Company shares were down over 1 per cent after the company released its Q3 results.

GLOBAL MARKETS

Shares were cautious on Friday as the escalating conflict in the Red Sea region sent oil prices surging, while slightly higher-than-expected U.S. inflation data did not dent investors' views on early and aggressive rate cuts in the U.S. and Europe.

The rally in rates may have been helped by dovish comments from European Central Bank (ECB) President Christine Lagarde, who said rate cuts would occur if the central bank had certainty that inflation had fallen to the 2 per cent level.

(With inputs from agencies.)

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