Stock Market: Roar of giants lifts indices; IT & banks serve double volley
By S Jha
New Delhi, July 17: In less than two weeks, Nifty clocked a gain of 700 points, which translates to almost a rise by four per cent, and the strong push was provided first by the IT giants and followed by banking behemoths. Nifty was struggling in the congestion zone of 19400-500 for a while before the IT behemoth TCS came roaring on the street on the back of the quarterly results.
Rally in the TCS pulled out the likes of Infosys, Tech Mahindra, HCL Technology, and Wipro, waking them up from their deep slumbers for a long time. Even while HCL technology and Wipro did not meet the expectations of the street, they were thrown up with the IT tidal wave, rising on the hope that the worst is behind the industry.
The midcap IT scrips, which had also been snoozing for a long time, woke up to the roar of the giants and the likes of LTI Mindtree, Mphasis. Persistent Systems gained strongly in the last three days of the trading sessions. Wipro gained almost five per cent during the day on Monday, a feat that was seen on the counter of TCS on Friday. Another IT laggard on the bourses, Happiest Minds, was also gaining strongly on Monday.
Reliance Industries saw a pre-result rally, as the scrip raced past the Rs 2800 level during the day. The index heavyweight gave a solid start to Nifty in the early hours of the trade. In the last five days, Reliance Industries twice attempted to scale the Rs 2800 level, but closed below the mark.
But the day belonged to the banking behemoths – HDFC Bank and State Bank of India. It was the first day of the merged entity of HDFC Bank on the bourses, which also coincided with its quarterly result, which came above the estimates. While the HDFC Bank pulled out Bank Nifty from the red, the SBI came roaring, rising quickly from the level of Rs 588 to go past Rs 602 and on the way helped the banking index one of the best gains in several sessions of over 700 points.
Elsewhere, the Mazgaon Dock Shipyard, Cochin Shipyrad, and Garden Reach gained strongly in line with the experts’ anticipation that the para 14 of the joint statement issued after the summit of President Joe Biden and Prime Minister would pave India to become a big navy hub, bringing a new business of maintenance and repair for the shipyard companies.
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