Sensex hits all-time high driven by tech stock surge

Sensex closed up by 622 points while Nifty gained 186 points

July 12, 2024

TCS, Infy power D-Street to fresh record highs

Indian equity benchmarks ended higher on Friday, driven by a rally in IT stocks. The Sensex closed up by 622 points or 0.78% at 80,519, while the Nifty gained 186 points or 0.77% to reach 24,502 at closing.

During the day, the Sensex and Nifty both made new all-time highs of 80,893 and 24,592 respectively.

Although the market was mainly driven by tech stocks, pharma, FMCG, and energy index were also top gainers.

PSU Bank, Realty, and PSE index were major laggards.

The share price of Tata Consultancy Services (TCS) surged to a high of 6.6 percent after being the first major IT firm to report its June quarter results for the financial year 2024-25 (FY25) on Thursday.

Other tech stocks, including Tech Mahindra, Infosys, and HCL Tech also showed positive momentum due to the result.

Rupak De, Senior Technical Analyst, LKP Securities said, “The sentiment looks positive from here, as the indicators and popular overlays indicate a continuation of strength.

“Support is visible at 24,400. The buy-on-dips strategy should favour the street until the Nifty falls below 24,400. On the higher end, the current rally might extend towards 24,800.”

Trading in midcap and smallcap remained snubbed as compared to largecap.

The Nifty Midcap 100 index closed at 57,173, up 25 points or 0.04 percent, and the Nifty Smallcap 100 index closed at 18,949, up 29 points or 0.16 percent.

Vaibhav Vidwani, Research Analyst at Bonanza Portfolio said, “Inflation cooled more than expected. US CPI rose 3 percent year-on-year in June 2024 versus a forecast of 3.1 percent. This news made investors change their investment approach.

“The market is optimistic that this improvement in inflation could lead the Federal Reserve to start easing monetary policy by this September.”

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