Sensex scales 81k peak with IT booster

Spread the love

IT unleashes short covering in Nifty

By S Jha

New Delhi, July 18: Sensex gained over 600 points on Thursday to settle above 81300. Nifty also posted gains of almost 200 points to touch the level of 24800.

The bourses gained strongly on Thursday in line with firm global cues. The Republican National Convention where Donald Trump hinted of revision in the US policy on Ukraine and Taiwan sent the equity markets on strong gains.

Shrugging off initial indecisiveness, Nifty went for a massive short covering on the day of expiry of the option contracts. The gains in Nifty were one-directional.

The direction in the bourses was set by the IT large cap scrips. TCS extended gains on Thursday. LT Mindtree and Infosys gave strong support to 50-share index.

Also Read: Xi Jinping unveils roadmap for Chinese modernization with security as cornerstone

Infosys came out with its quarterly results in the off-market hour. Infosys beat the street estimates on all fronts.

The Q1 result of Infosys was in line with the numbers posted by TCS earlier. LT Mindtree had also posted gains in its Q1 numbers.

The all-round rally in the IT stocks brought the bulls to change the select stocks. Midcap and smallcap IT stocks were also reacting positively on the street.

The rail and the defence stocks came under pressure on Thursday. The unveiling of the Union Budget on July 23 rubbed negatively with the rail and the defence stocks.

Also Read: Five dies in another rail mishap, ‘loco pilot heard loud sound’

Yet, select stocks were trending. Tata Teleservices, which had been a case of an alleged pump and dump two years ago, rallied almost 20 per cent on Thursday. It had gained strongly on Tuesday.

The Reliance-owned Just Dial also vaulted by 20 per cent. India Cement, which is a target for buying of shares by Ultratech, further extended gains on Thursday.

KPI Green went ex-split on Thursday. The solar power firm was locked in the upper circuit. KPI Green has already been a multibagger, making gains in multiples in the last two years.

Nifty by touching the 24800 level during the day is being seen by chartists to have gone into a firm upward zone. Sensex is also now trading at its peak.

Watch: Military historian Shiv Kunal Verma speaks on Yodha The Illustrated Military History of India.

Later in the day, Chinese President Xi Jinping unveiled a roadmap for the development reform in China. This is being interpreted as an impending move for pump priming of the economy.

The Chinese stimulus to the economy may bring cheers to the equity markets. Analysts are watching out for impact in metal shares.

Disclaimer: This article makes no recommendations for buy or sell of shares of any company.

Join WhatsApp channel of The Raisina Hills