Stock Market: AI-theme is new equity dope; June series to begin in US debt shadow
Pix credit @KPIT
By S Jha
New Delhi, May 25: Time of artificial intelligence to drive the market appears to have arrived, as Nvidia gained over 26 per cent on Nasdaq following busllish management commentary. The market for AI-enabled chop businesses is robust, said the management, which sent the investors on a mad rush to buy into the tech company.
Tata Elexsi and KPIT Technology gained strongly on Thursday even while the broader IT index remained under pressure. The midcap IT companies such as LT Infotech and others have also been gaining. The Nasdaq rally appears to be showing early signs of tech turnaround even while the US economy stays at the tock bottom growth, and Germany is in strong grip of recession with the economy further contracting.
Tata Elexsi, which had last year zoomed over Rs 10700 level, has gained over 15 per cent in the last one month. At the same time, KPIT Technology, which has gained over 121 per cent in the last one year, continues to rise, with the scrip now almost touching its all-time high. Both Tata Elxsi and KPIT Tech are known to be strong firms in high technology execution.
The institutional buying remains robust in the Indian equity market, as both the foreign and domestic institutional investors strongly bought in the cash markets. The traders in the US are also growing optimistic about the debt ceiling negotiations wrapping up by the D-day. Dow Jones in the afternoon trade on Thursday had almost covered all the losses of the day to trade almost flat.
Tejas Networks, a Tata company, gained strongly on Thursday. The scrip is being discussed for being part of the consortium led by TCS which has been awarded contract by BSNL. Titagarh Wagons, which has partnered BHEL for the manufacturing of Vande Bharat trainsets, reacted strongly to its quarterly result to gain over eight per cent on the bourses.
This Thursday being the weekly and monthly expiry of the option contracts saw sideways movements in the indices. The Bank Nifty for another day remained under pressure, which is likely to be on account of the uncertainty of the US debt ceiling talks. Nifty went into reds and closed in the green to trade in a narrow range in a typical expiry which essentially helps the option writers to make the most of the money. The expiry day trading is thus known to be a nightmare for the option buyers, as strong hands of the option writers and sellers hold the markets in their grips.
About The Author
