Nifty holds 23,350 mark; IT shares extend rally for 3rd day

The key equity indices continued to trade higher with modest gains in mid-morning trade. The Nifty hovered above the 23,350 mark. IT shares extended gained for the three consecutive trading sessions.

At 11:30 IST, the barometer index, the S&P BSE Sensex, was up 188.39 points or 0.25% to 76,800.40. The Nifty 50 index added 55.10 points or 0.24% to 23,378.05.

The Sensex and Nifty clocked an all-time high of 77,145.46 and 23,481.05 respectively in early trade.

The broader market outerperformed the frontline indices. The S&P BSE Mid-Cap index added 0.53% and the S&P BSE Small-Cap index rose 0.41%.

The market breadth was positive. On the BSE, 2,098 shares rose and 1,583 shares fell. A total of 135 shares were unchanged.

Economy :

Indias annual inflation rate based on all India Consumer Price Index (CPI) number came in at 4.75% for the month of May, 2024, according to government data released on Wednesday. Corresponding inflation rate for rural and urban is 5.28% and 4.15%, respectively. The Consumer Price Index (CPI) based retail inflation was 4.83% in April 2024 and 4.31% in May 2023. Inflation in the food basket was 8.69% in May, marginally down from 8.70% in April, according to the data released by the National Statistical Office (NSO).

India's industrial production grew 5% in April this year mainly due to good show by mining and power sectors, according to official data released on Wednesday. The factory output measured in terms of the Index of Industrial Production (IIP) witnessed a growth of 4.6% in April 2023. The growth rates of the three sectors, Mining, Manufacturing and Electricity for the month of April 2024 over April 2023 are 6.7%, 3.9% and 10.2% respectively.

Buzzing Index:

The Nifty IT index gained 1.18% to 34,956.15. The index added 1.24% in the three consecutive trading sessions.

LTIMindtree (up 2.44%), Coforge (up 2.36%), Mphasis (up 1.96%), Tech Mahindra (up 1.9%), Tata Consultancy Services (up 1.44%), Wipro (up 1.43%), Persistent Systems (up 1.16%), L&T Technology Services (up 1.1%), HCL Technologies (up 0.89%) and Infosys (up 0.76%) edged higher.

Stocks in Spotlight:

Bondada Engineering was locked in upper circuit of 5% after the company received a letter of award (LoA) from NLC India worth Rs 939.39 crore.

Integra Essentia was locked in upper circuit of 5% after the company received substantial fresh orders for its agro and infrastructure business segments for total aggregated value of Rs 21 crore.

Global Markets:

Asian stocks traded mixed after the Federal Reserve's cautious stance on interest rates didn't deter investors' expectations for cuts.

The Bank of Japan's two-day policy meeting starts today, with a decision expected on Friday. While holding rates is likely, a reduction in bond purchases is a possibility.

U.S. stocks rose on Wednesday after inflation data showed a slowdown. The core consumer price index reached its lowest level in over three years, with year-over-year prices rising 3.3% for essentials and other goods.

The Federal Reserve maintained interest rates after its policy meeting, revising its forecast to one rate cut this year and four in 2025. This shift from the previous projection of three cuts in 2024 reflects a more cautious outlook.

The S&P 500 extended its record high by 0.9%, while the Nasdaq composite climbed 1.5%, further surpassing its own record. The Dow Jones Industrial Average saw a modest decline of 0.1%.

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