Sensex and Nifty Soar on IT Gains; Rupee Edges Up

Today’s opening of the Indian stock market was favourable; the BSE Sensex rose over 100 points and the Nifty50 surged past 24,300. Gains in the IT industry are mostly responsible for this increase; Tata Consultancy Services (TCS) is leading the charge following June quarter revenue projections being exceeded.

Important Players and Market Movement

The Sensex was up 100 points from its previous closing as of 10:05 a.m. IST; the Nifty50 stayed constant over the 24,300 level. After its Q1 numbers, TCS gained 3%; HCL Tech came in with 1%. Following a lower-than-expected U.S. inflation report that drove down U.S. bond yields and raised dollar-rupee forward premiums, the Indian rupee also experienced a modest uptick, trading at 83.52 against the U.S. dollar.

Contractual Agreements and New Listings

Listing at a 90% premium, Ganesh Green Bharat and Effwa Infra and Research made outstanding debuts on the SMEs. AVG Logistics also signed a deal with UPSRTC, which raised its stock by 7%. Expected to bring a lifetime income of Rs 60 crore over five years, this contract employs space in 9,000 UPSRTC buses for quick parcel delivery services.

Impact of Earnings

Anand Rathi Wealth’s June quarter consolidated net profit, which came out to be Rs 73.4 crore, showed a 38% year-on-year increase, hence generating a 1% stock gain. Likewise, TCS stated an 8% year-on-year increase in consolidated net profit to Rs 12,105 crore, with sales for the June quarter rising by 5% to Rs 62,613 crore, hence driving shares up by 2%.

Global Market Patterns

World markets showed conflicting patterns. While Hang Seng futures climbed by 0.7%, S&P 500 futures stayed essentially the same. Japan’s Topix dropped 0.8%; Australia’s S&P/ASX 200 increased 0.7%; and Euro Stoxx 50 futures jumped 0.4%. The euro, Japanese yen, and offshore yuan showed minimal movement against the US dollar in the currency market.

Commodities and institutional activity

Early Asian trade saw higher oil prices; Brent crude futures rose to $85.77 per barrel, while U.S. West Texas Intermediate crude futures rose to $83.12 per barrel. Strong summer consumption and lower American inflationary pressures helped to explain this increase.

In institutional activity, domestic institutional investors bought shares worth Rs 1,676 crore, while overseas portfolio investors became net sellers, selling shares worth Rs 1,137 crore. Strong domestic flows and recent buying activity by FIIs help to maintain the generally good attitude in the market.