The Nifty IT index hit a record high in Thursday's session- gaining over 1 per cent or 600 points intraday after the tech-heavy Nasdaq Composite index in overnight rally in the US hit past 20,000 level for the first time.

COMMERCIAL BREAK
SCROLL TO CONTINUE READING

Amid buoyancy in the IT pack, 8 of the constituents including Coforge, Tech Mahindra, Persistent Systems, LTIMindtree, Wipro, Infosys, Mphasis and HCL Technologies marked their fresh 52-week highs.

Coforge (up 2.5) scaled to a fresh 52-week high of Rs 9,243.1, Tech Mahindra (up around 2 per cent) zoomed to a new 52-week high of Rs 1,807.7, Persistent Systems (up around 2 per cent) also marked its fresh 52-week high price of Rs 6,509 per share. Meanwhile, other counters from the basket were also up between 0.5 per cent to 1.65 per cent.

The sharp gains in the tech-stocks in the US came after an in-line November consumer inflation print.

Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services said, "Even though the US CPI inflation in November at 2.7 per cent has come a bit above the October numbers, this was on expected lines and, therefore, the expectation of a 25bps rate cut by the Fed is intact."

As per Zee Business research inputs, the probability of a rate cut by the US Federal Reserve in its December meet is now 98 per cent.

Atul Parakh, CEO of Bigul said, "The technology sector demonstrated robust performance this morning, with Tech Mahindra leading the Nifty 50 gainers, complemented by TCS. The rally is underpinned by a broader global market momentum, notably evidenced by the Nasdaq Composite crossing the 20,000 mark for the first time."

Driving factors include optimistic expectations of regulatory relaxation and promising AI-driven earnings growth potential.

The global technology sector’s performance is providing additional momentum to Indian IT stocks. Market sentiment is further influenced by anticipated domestic inflation data and global economic indicators. Investors are closely monitoring these developments, with the recent US CPI reading of 2.7 per cent raising expectations of a potential 25 basis points Federal Reserve rate cut on December 18, he added.