The Sensex, India’s benchmark stock index, came close to reaching the 73,000 mark as key software stocks rallied, according to the Times of India. The Sensex closed at 72,568 points, up 847 points or 1.2%, with Infosys, a leading technology company, recording an almost 8% increase. The Nifty, the National Stock Exchange’s benchmark index, also experienced gains, rising by 247 points or 1.1% to reach 21,899 points.
The surge in stock prices was primarily driven by domestic institutional and retail investors, with limited participation from foreign funds. Investors reacted positively to the quarterly results announced by IT giants TCS and Infosys, which exceeded analysts’ expectations. This led investors to believe that the worst may be behind the Indian software exporters.
TCS, in particular, caught investors’ attention with its revenue growth. The company’s recent strong deal wins have driven its revenue back to growth, beating expectations. BNP Paribas increased the price target for TCS to Rs 4,575, while retaining its ‘outperform’ rating. On the Bombay Stock Exchange, the TCS stock closed at Rs 3,882.
Infosys also reported better-than-expected operating performance during the October-December quarter. Emkay Global Financial Services predicts that growth will accelerate in FY25 due to the ramp-up of large deals, a robust deal pipeline, and a recovery in discretionary spending. The brokerage has set a price target of Rs 1,850 for Infosys, which closed at Rs 1,612 on the BSE.
The stocks of Infosys and TCS contributed to more than half of the Sensex’s gains for the day, according to BSE data. As a result of the market rally, investors saw their wealth increase by Rs 3 lakh crore, bringing the total market capitalization of the BSE to a record high of Rs 379.7 lakh crore.
The record-high levels achieved by the Sensex and Nifty reflect the positive sentiment among investors towards software stocks following impressive quarterly results from industry leaders. With the hope that the worst is over for Indian software exporters, market players expect continued growth and recovery in the sector throughout the upcoming fiscal year.
The rally in the market signifies the confidence of domestic investors and the positive outlook for the Indian economy as a whole. As software stocks continue to attract attention and deliver strong performances, investors remain optimistic about the potential for further gains in the coming months.
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