The Nifty IT index continued its rally for the second straight session on Thursday, Aug. 20, as domestic information technology (IT) heavyweights such as Infosys, Wipro, Tech Mahindra, Tata Consultancy Services (TCS) along with midcap IT service majors such as Coforge and Persistent Systems led the charge on value buying. All stocks in the Nifty IT pack traded in green with Coforge and Infosys up over 3% and 2% respectively in early trade. The positive momentum in the domestic market also lifted the Nifty IT index by 2% after the opening bell as benchmarks Sensex and Nifty 50 snapped a seven-day losing streak.
Indian equity benchmarks rallied on Thursday, after logging its longest losing streak in 11 months. The NSE Nifty 50 rose as much as 0.6% to 24,225 and the BSE Sensex rose as much as 585 points or 0.8% to 77,494.79. The positive regional cues followed a recovery in US equities. The S&P 500 ended a three-session losing run on Wednesday as longer-dated Treasury yields retreated from multi-year highs after the US government announced measures aimed at easing stress in the bond market.
Shares of midcap stars Coforge and Persistent Systems led the charge by jumping 3.33% and 2.60% respectively in the first hour of trade, while Infosys, Wipro, and TCS followed with gains in the range of 1-2%. Mphasis, LTM, HCLTech also climbed upto 1.5%. The rally in domestic IT stocks continued for the second day on value buying across midcap and heavyweight counters amid a weaker rupee. On Wednesday, India's IT majors defied a major global tech selloff over record-high bond yields.
In yesterday's session, all sectoral indices closed in the red except the Nifty IT benchmark. The index snapped a three-day losing streak and was the only sectoral gainer, up 0.6%. Coforge and HCL Tech were the top sectoral gainers on Wednesday. Shares of Coforge settled up 2.4% higher while HCLTech shares settled 1.85% higher after the closing bell. ''Reflecting weakness across Asian markets, Indian equities saw broad-based selling, though IT stocks outperformed on value buying and support from a weaker rupee,'' said Vinod Nair, Head of Research, Geojit Investments Ltd.
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