3 min read
.Updated: 16 Jul 2020, 05:49 PM IST
Edited BySurajit Dasgupta
- Infosys shares hit a record high, powering gains in IT stocks
- Pharma shares also posted strong gains with Cipla surging over 5%
Despite weak global equities, Indian stock markets today closed higher, led by gains in IT stocks. The NSE Nifty 50 index ended 1.15% higher at 10,739.95, while theS&P BSE Sensexsettled 420 points higher at 36,471. Infosys led the gains in IT stocks with shares surging nearly 15% to a record high during the session after the software services provider reported a better-than-expected profit in the first quarter on Wednesday evening and reinstated its full-year revenue growth guidance.
Infosys sharessettled about 10% higher today, contributing over 275 points to Sensex’s 420-point gain.
The Nifty Pharma index rose 1.7%, with generic drugmaker Cipla Ltd finishing up 5.6%. Banking and auto indexes also gained about 1% and 1.2%, respectively.
Coronavirus cases in Indiarose over 30,000 today, taking the overall tally to 968,876, government data showed.
Here is what analysts said on today’s market performance:
Nagaraj Shetti, Technical Research Analyst, HDFC Securities
“Nifty has been sustaining above the lower support of 10550-10600 levels in the last three sessions. Though, Nifty moved up smartly today, the overall market breadth was negative mainly due to an underperformance in the broader market indices like mid and small cap segments.”
“The short term trend of Nifty is positive with range bound action. On the way up 10830-10900 is going to be a key overhead resistance for the market in the next few sessions. Important supports to be watched at 10600-10550 levels.”
Deepak Jasani, Head Retail Research, HDFC Securities
Technically, with the Nifty bouncing back smartly and rallying strongly in the last 45 minutes of trade, the bulls are not willing to give up easily. Today’s rally has come with the Nifty holding above the 200-day EMA, which indicates that the rally could continue for a while. Bullish bets are off if the Nifty closes below the immediate lows of 10595-10533.”
Vinod Nair, Head of Research at Geojit Financial Services.
“In spite of negative global cues, Indian benchmark indices gained strength as the day went on, powered by the IT index and Infosys in particular. Infosys reported better than expected numbers and was backed by good deal wins and decent outlook. Ground realities remained little changed, as the virus infections and geo-political tensions created uncertainty on the global economic recovery. Investors need to remain stock specific and the earnings results and commentary should be watched out for.”
Manish Hathiramani, Index Trader and Technical Analyst, Deen Dayal Investments
“The range of 10550-10850 continues. The level around 10850 is significant as that was the recent high this market made. The trend continues to remain bullish and if we can get past this level, we could be headed to 11000 and then 11100.”
Ajit Mishra, VP – Research, Religare Broking Ltd.
“Markets remained range-bound for yet another session but managed to gain nearly a percent. The initial upmove was led by healthy buying interest in IT stocks on the back strong earnings from Infosys which later supported by some recovery in banking names in the last hour of the trade. “
“Markets will continue to take cues from the global peers, in the absence of any major domestic trigger. While the mood in the global markets continues to remain buoyant, the rising number of cases in the US and India would remain a key cause of concern. Besides, the earnings announcements will further induce stock-specific volatility. Keeping all in mind, we reiterate our cautious stance on the markets and suggest preferring hedged trades.”(With Agency Inputs)
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