Nifty IT hits new high for second day in a row; Persistent Systems, Wipro and Coforge hit new 52-week highs

Even as the broader markets gave up their morning gains amid correction in few pockets including pharma, auto and oil & gas among others, Nifty IT continued with its upward journey and hit its fresh peak of 44,244.6. The sharp gains at the day's high of 1.44 per cent were led by the likely end to the US Fed's interest rate hike regime.

Further, the market is also awaiting the key Fed minutes slated to be released later today.

Lower inflation in the US is at comfortable levels and signal that the Fed will not derail from the interest rate-cut path henceforth. This is even as the US inflation will unlikely come down to the US Federal Reserve's target of 2 per cent in 2025.

The US inflation stood at 2.6 per cent for the 12-month period ending October 2024. The lower inflationary pressure and the latest Trump win is expected to leave more room in the hands of corporates to increase spending, auguring positive for Indian IT companies.

In the past 5 sessions, Nifty IT has surged from 41,407 levels to top a new peak of 44,244.6, rising nearly 7 per cent.

The index has been rather steady for the past one month, gaining as much as 4 per cent, while the broader Nifty50 during the same time was up by just 0.17 per cent.

Nevertheless, in the run-up, Mphasis is the only constituent in the red, trading with a cut of nearly 2 per cent, while Coforge emerged as the top gainer with gains of as much as 11 per cent, followed by Wipro and TCS among other-logging gains of up to 7 per cent.