By S Jha
New Delhi, January 12: Throwing the baggage of past two years, Infosys finally asserted that it’s indeed the leader of the IT sector in India, as the scrip spurted by a massive eight per cent on Friday. Nifty gained a whopping close to 250 points to break out of the short range ceiling of 21800.
The all round gains on the street was despite the fact that the US equity markets are currently in an indecisive phase. Also, the bourses in India climbed despite the crude oil prices shooting up following the Middle East tension, as well as the Yemen-based rebel Houthi attacks on the cargo ships, drawing the US into the firefight mode.
Infosys led the show on Friday in tandem with TCS, while the mid cap IT scrips roared back to ride the bulls. The likes of Birlasoft, Coforge, Cyient, and others were spurting furiously in the session. Newgen Software was locked in a five per cent upper circuit after going ex-split in 1:1 ratio. The likes of Tech Mahindra, HCL technology, and Wipro were also strong.
With Nifty breaking out of the short term range, as per market participants, of 21500-800, the bulls came with adrenaline shooting to ride the surge in the equities. The broader market was already gaining from the rally in Reliance Industries, which had spurted from the level of about Rs 2600 to go post the level of Rs 2700, which has been seen after a long gap. Amid the play of the big boys leading the charge, ONGC also broke out of its all time high as the rally extended in the oil and gas sector. Incidentally, ONGC has a PE ratio of just seven.
The equity market also saw a major turnaround in the acqua sector with Avanti Feeds leading the charge on the street. The scrip after a consolidation of several months jumped by over 16 per cent. There are several other smallcap scrips from the sector which are inviting the interests of the investors.
The budget anticipation kicked in for the rail stocks as the Indian Railways Finance Corporation extended the gains on the street. It was followed by the likes of Rail Vikas Nigam, IRCTC, and others. Among other gainers was Coffee Day Enterprise, which gained eight per cent on the street.
The market participants are seen to be showing interests in the Bank Nifty after the IT Nifty blasted off the roof. The likes of State Bank of India and ICICI Bank were strong during the day. Several of the PSU banking stocks were trending up, and PNB finally inched closer to the Rs 100 mark.
(Disclaimer: This article does not recommend buy or sell of any stock; investors should consult SEBI-registered advisors for any decisions)
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