Nifty sets new record, Sensex climbs 74 points, IT, Pharma gain

The Indian equity market indices closed on a positive note on Wednesday, with Nifty crossing its previous record high (25,078.30) and surpassed 25,100 for the first time driven by robust performance in Information Technology and pharma sectors, although profit-booking tempered gains by the close.At close, the Sensex was up 73.80 points or 0.09 percent at 81,785.56, and the Nifty was up 34.60 points or 0.14 percent at 25,052.35.
Analysts note that the sentiment for information technology stocks has been growing stronger by the day as hopes of a revival in discretionary demand grow, spurred by expectations of imminent rate cuts from the Federal Reserve. This increasing bullishness has led to another wave of buying in IT stocks, pushing the Nifty IT index up by over 2 percent to a new peak of 42,712.50 on August 28.
The optimism extends beyond this recent rally, with the sectoral index reportedly, outperforming the benchmark Nifty 50 over the past week. While the Nifty IT index surged nearly 3 percent during this period, the Nifty 50 gained around 1.3 percent .Several analysts also anticipate a rebound in information technology stocks,citing their recent underperformance, which has kept valuations in the sector relatively reasonable compared to the inflated levels seen in much of the market.
LTIMindtree, Wipro, Divis Labs, IndusInd Bank and Bharti Airtel were the top gainers on the Nifty,while losers included Maruti Suzuki, Nestle India, Asian Paints, Adani Enterprises and Britannia Industries.
On the sectoral front IT, Pharma, and Healthcare were up more than 1 percent each, and Telecom index was up 0.5 percent,while Media index shed 1.4 percent and FMCG and PSU Bank down 0.4 percent each.Broader indices including BSE Midcap and Smallcap touched record high but ended on a flat note.
Meanwhile, this week, the market is likely to to see a gradual upward movement,driven by selective stock movements. The  key events to watch include ,India's Q1FY25 GDP data, set to be released by the National Statistical Office on Friday, alongside the monthly F&O expiry and key global indicators like U.S. GDP and consumer confidence data.
Rupee Close:
On 28 Aug'24,the Indian rupee depreciated by 3 paise to close at 83.96 against the US dollar on Wednesday, driven by strong dollar demand from importers. Positive domestic equities and foreign fund inflows helped cushion the downside. Forex traders reportedly informed a positive trend in domestic equities, foreign fund inflows and overnight decline in crude oil prices cushioned the downside.
Trading Guide:
Vinod Nair, Head of Research, Geojit Financial  Services ,reportedly quoted as saying,a consolidation in the US 10 year bond yield and an inflow of FIIs kept the domestic market sentiment optimistic. However, valuation remains a near-term deterrent, which will be further tested based on the upcoming India Q1 FY25 GDP data this week. On the other hand, investors are giving more emphasis to defensive bets, which is evident with the outperformance in IT and pharma stocks.
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(Writer is a Finance Research Analyst, based in Gandhinagar, Gujarat)