TCS, Infosys, Persistent Systems Rise As Nifty IT Index Gains For Fifth Straight Session
The Nifty IT was the top performer compared to other sectoral indices on the National Stock Exchange in Tuesday's trade.
Tata Consultancy Services Ltd., Infosys Ltd., and Persistent Systems Ltd. share prices contributed the most to the NSE Nifty index's gain in Tuesday's session. The index has been on a gaining spree since June 4 on signs of easing trade-tensions between US and China.
The index has been rising on positive developments on the global front. The US and China has re-started their negotiation regarding trades after accusing each other of violating terms of trade agreement reached in Switzerland.
The US and China concluded the first round of trade talks in London on Monday. US Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Trade Representative Jamieson Greer are leading the country's delegation while China's Vice Premier Hi Lifeng, as reported by news agencies.
Last week, the US reported a slight lower-than-expected fall in non-farm payroll for May which eased some of the concerns about the slowing labour market of the world's largest economies. However, on a sequential basis it fell from the previous month which raised hopes for further monetary easing in the US.
"The Nifty IT is rising tracking US technology stocks. The Nasdaq 100 and S&P 500 have recovered from lows it had in late March and April. Also, in recent past, the Nifty IT has relatively underperformed while financial services outperformed. The index is catching up now," said Ritesh Bhansali, deputy chief executive officer, Mecklai Financial Services Ltd.
Indian IT companies conduct substantial portion of their businesses with the US which make them vulnerable to US economy's state.
The NSE Nifty IT rose 1.66% to 38,2931.1 so far today. The index was trading 1.57% higher at 586.85 as of 11:06 a.m. as compared to 0.07% advance in the NSE Nifty 50 index.
The Nifty IT was top performer compared to other sectoral indices on National Stock Exchange.
In the Nifty IT index, Coforge gained the most in Tuesday's session. Intraday, the share price rose 5.63% to Rs 1,895 apiece. JPMorgan reiterated Coforge as its top pick in the index. The brokerage has a rating of Overweight with a target price Rs 2,080 apiece.
Persistent Systems Ltd. and LTIMindtree Ltd. are other two top gainers in the index in terms of intraday gains.
However, as of 11:11 a.m. Persistent Systems Coforge, and Tech Mahindra Ltd. were leading gains in the index.
