Dalal Street rebounds: Sensex, Nifty rally to scale fresh highs

The domestic share market indices snapped a two day losing streak and  closed on a positive note on Friday, led by a sharp rally in the IT index, specifically TCS, following its Q1 results, surpassing revenue estimates for the June quarter.TCS shares have rallied nearly 3 percent in early trade, according to infomation.At close, the Sensex was up 622 points or 0.78 percent at 80,519.34, and the Nifty was up 186.20 points or 0.77 percent at 24,502.15. About 1595 shares advanced, 2186 shares declined, and 98 shares unchanged.
TCS, Wipro, LTIMindtree, Infosys and HCL Technologies were the top gainers on the Nifty, while losers included Maruti Suzuki, Divis Labs, BPCL, Coal India and Asian Paints. On the sectoral front, Information Technology index surged 4.5 percent, and Media index added more than 2 percent. On the other hand, Realty index shed 1.5 percent, Power index down nearly 1 percent, Capital goods and Auto indices down 0.5 percent, respectively.The BSE midcap and smallcap indices ended with marginal losses.
Market This Week
● Market gains for 6 consecutive weeks, longest streak in 2024
● Benchmark indices outperform broder markets this week
● Friday’s big IT move helps Sensex & Nifty gain 1% each this week
●Nifty Bank give negative returns, falls 0.6%
● Midcap index records a minor gain on 0.2% this week.
Rupee Close:
On 12 July'24,the Indian rupee ended marginally higher at 83.53 against the U.S. dollar on Friday after a soft U.S. inflation reading boosted hopes of rate cuts by the Federal Reserve and drove U.S. bond yields lower which also helped lift dollar-rupee forward premiums.
Meanwhile, Forex dealers reportedly stated,the impact of firm crude oil prices was offset by overnight losses in the US dollar index and early gains in the domestic equity markets.
Trading Guide
Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, reportedly stated that,the market which has been moving in a narrow range this week might react favourably to positive global and domestic cues. The positive global cue is the decline in inflation in the US by 0.1% in June triggering hopes of a rate cut by the Fed in September for which the market indicates a 90% probability. The positive domestic cue is the better than expected numbers from TCS and positive management commentary which can lift most IT stocks. Market experts have recommended buying these five buy-or-sell stocks — CESC, CMS Info Systems, Ashok Leyland, SBI, and Affle India.

(Writer is a Finance Research Analyst, based in Gandhinagar, Gujarat)