Infosys guides tech flock on bullish path; indices faces profit booking
By S Jha
New Delhi, July 18: The tech rally on the NASDAQ had set the stage for the turnaround in the US equity markets. The tech rally on the Indian bourses took the indices to record high, and when the heavy profit booking came along it was once more the IT giants who held the markets sure footed to give the bulls to live another day on the street.
Infosys announced in an exchange filing that an existing customer, not named, would be spending as much as $2 billion in the next few years on artificial intelligence and modernization efforts. Infosys ended the session at almost its day’s peak of Rs 1476, with a gain of over three per cent.
The IT counters had been facing profit booking on Monday, but they came off from their lows in the post-noon session on Tuesday to end the day in the green. The likes of Tech Mahindra, Wipro, and TCS recovered much of their grounds on Tuesday. HCL technology remained firm throughout the day.
The running theme guiding the IT pack is that they are adding strong client base, and AI is the new buzzword to drive the revenue path of the listed firms. While the small IT firms have run to their record highs, now it’s the turn of the bluechips to play the catch up game even while the midcaps in the sector remain lackluster.
The markets opened on an extraordinary levels while carrying the momentum from Monday closing of the session. But soon the indices turned choppy as the profit booking expectedly kicked in from the record levels. Nifty at its record high had seen the level of 19816 and Bank Nifty was trending firm over 45700, as a number of private banks came strong. HDFC Bank, ICICI Bank, Axis Bank gave a solid start to the Bank Nifty. But they all lost the steam soon as profit booking came in the show strongly.
Adani Enterprises was buzzing in the early session after the group claimed that there was no serious finding by the Supreme Court appointed panel to look into the report of the Hindenberg. But soon the market sensed that the group was making the claims on its own, which led to the sharp retracements in the counter. Reliance Industries in the run up to the demerger on Thursday finally gave a closing above Rs 2800 level.
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