Sensex rises over 300 pts; Nifty above 21,700 boosted by IT stocks; Infosys up nearly 5%, TCS up nearly 3%

The Indian share market edged higher on Friday, January 12, amid strength in information technology (IT) stocks. Last seen, both indices were up over 0.35 per cent, S&P BSE Sensex rose 277.5 points at 71,998.68 and NSE Nifty soared 74.2 points at 21,721.45.

“With inline results from Infosys and better-than-expected results from TCS, IT stocks is seeing action today. Even though there is no positive message from the management commentary, the market is likely to respond positively to the absence of any bad news. But the upside for TCS and Infy will be limited since it will take time for clarity to emerge on the prospects for the sector in FY25,” said Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

Dr. Vijayakumar added resilience in IT stocks and strength in Reliance will enable Nifty to consolidate around 21,600 levels. HDFC Bank results on January 16 will be keenly watched by the market for cues in the direction of Bank Nifty. The U.S. CPI inflation inching up to 3.4 per cent year-on-year (YoY) is slightly negative from the global equity market perspective. The rate cut expected from the Fed in March this year may not materialise. It is likely to be postponed to June and, therefore, the rate cut by the MPC will also get delayed.

Meanwhile, the Nifty Mid Cap 100 and Small Cap 100 also opened in the positive territory. High-beta Nifty Bank was up 0.24 per cent at 47,550.75.