Stock Market takes ‘soft’ candle to shine
By S Jha
New Delhi, July 14: Nifty spent considerable time to resolve indecision in the 19400 and 19500 zone to finally break out on Friday. Bank Nifty, bearish of the all indices, also shed the dipping mood to finally say yes to the bulls to stage a smart turnaround the late session on Friday.
The street had almost no expectations from the IT sector as the earning season commenced. The street had factored in lukewarm quarter on account of the economic downturns in the US and Europe, the catchment areas of the software service companies.
But TCS announced to the street that not only it delivered more than the street expectation, spree at which the clients have been added by the IT firms brought new hopes to the bulls. Also, the street fear of the high attrition rates among the IT firms, which had shot up in excess of 20 per cent, came around 16 per cent, to entice the bulls to take bet on them.
Furthermore, the buzz around Artificial Intelligence (AI) has been buzzing the small IT firms, which also caught up with the large caps in the sector. Thus, the IT majors held the strings of the horses on the Dalal Street on Friday, with the sector coming all guns blazing to set the indices on the path of record high.
TCS gained almost five per cent. Such a day is too few in a year, as the IT behemoth rarely gains more than one per cent in normal sessions. Infosys and tech Mahindra, as well as HCL Technology, besides Wipro made the hey in the Friday sunshine, accounting for the secular rally on the bourses. The bull run of the IT major also encouraged the mid-sized IT firms such as Mphasis, LT Mindtree, Persistent Systems to wake up and smell the coffee, as they made handsome gains on Friday. Mastek rose by over nine per cent.
IT sector had been the most laggard for the last 18 months, and a secular rally in them helped Nifty to rise by 150 points, while minutes before closing the session the index had almost touched the 19600 level. The chartists are claiming that the Bank Nifty has also completed its retracement, as the index gained strongly in the last session to close above 44800 level, with AU Small Finance making most of the gains.
Electrical bus theme continues to pump a few scrips such as Olectra Greentech and JBM Auto, which rose sharply by 11 per cent on Friday after bagging a fresh order. Gland Pharma also extended it gains, while the pharma sector is making incremental gains on the street.
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