Stock Market: IT raids Dalal Street for volte face

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The turnaround in the broader market was led by the IT bluechip companies. HCL Technology and TCS led from the front to carry out the rescue acts for the indices.

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By S Jha

New Delhi, February 22: The chartists had given up on the indices after Nifty had broken the level of 22160 yesterday to predict that the index is headed for a much lower level. They were proved right in the early session on Thursday as Nifty broke the level of even 21900. But the street lightened up on cues from the US to stage a spectacular turnaround on a day of Nifty expiry.

The US indices were trading higher in the afternoon session. A broader rally kicked on the US bourses after the tech-giant Nvidia lifted the spirit. The chip giant came out with an extraordinary set of numbers to set the indices soaring. NASDAQ, Dow Jones, and S&P were trending in the afternoon session on Thursday.

Earlier, Nifty was knocked down amid the prevailing pessimism in the street that the indices had peaked in their recent rally. But Nifty staged a comeback of over 300 points to give a close above 22200 once more. The index has closed above 22200 for a second occasion this week to give confidence to the investors that the street may be setting up for higher gains.

It may be noted that Sensex, Nifty, and Bank Nifty had posted gains of more than 4.5 per cent in a month. Market participants conventionally reckon retracement after an index rallies by about five per cent. But the robust gains in the US have brought cheers to the market participants about fresh wave of tides for the market in the coming days.

The turnaround in the broader market was led by the IT bluechip companies. HCL Technology and TCS led from the front to carry out the rescue acts for the indices. The gains in Reliance Industries also helped the indices to turnaround on an eventful day.

Afterwards, the green belts in Nifty only kept expanding as the likes of Coal India, Bajaj Auto, Wipro, Larsen and Toubro also joined the party with decent gains. A broad-based gains among the scrips sent the indices soaring.

However, Bank Nifty closed in the red despite Axis Bank trending on Thursday. The banking sector was the exception on the street to close with losses. The auto and the IT sector were the top gainers. Maruti further extended the gains to touch the level of Rs 11700, and reiterated its bull run on the street.

(Disclaimer: This article makes no recommendation for buy or sell of shares of any company)

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