BENGALURU: India’s blue-chip Nifty 50 rose to record highs on Monday led by information technology stocks after HCLTech posted revenue growth in the June quarter and projected sequential growth across verticals.
The NSE Nifty 50 rose about 0.4% to a record high of 24,598 as of 9:19 a.m. IST, while the S&P BSE Sensex added 0.25% to 80,723.86 points, just shy off record high levels hit on Friday.
The IT index rose 1% to an all-time high at the open, becoming the top percentage gainer among 13 major sectors.
HCLTech rose 2.7% after it posted a 6.7% rise in June-quarter revenue and projected growth in most verticals and geographies in the ongoing quarter, post closing bell on Friday.
These results have provided a much-needed boost to the IT sector where sentiment has been sluggish and valuations appear reasonable, said Krishna Appala an analyst at Capitalmind Research.
The Nifty 50 and S&P BSE Sensex logged record closing highs on Friday, and extended their winning streak to a sixth consecutive week.
Indian IT companies, which earn a significant share of revenue from the US, led the rally over the last two weeks helped by firming bets of a September US rate cut and largely upbeat results from Tata Consultancy Services.
Indian shares end muted on caution ahead of earnings
The odds of a 25 basis point rate cut has risen to about 90% from about 70% a week ago, according to the CME FedWatch Tool, on the back of recent soft labour market and inflation data.
Among individual stocks, Avenue Supermarts gained about 4% after the operator of DMart retail store chain posted a 17.5% rise in first-quarter net profit on Saturday.
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