IT stocks : The enthusiasm of bulls is high in the market. Nifty has climbed almost 150 points and crossed 25600. RIL, INFOSYS, L&T and Bharti Airtel Has filled the market with excitement. Bank Nifty is also showing growth. Midcap and smallcap stocks are outperforming today. There is a stormy boom in IT today with the hope that the shutdown in America will end soon. Nifty’s IT index has increased by about two percent. HCL TECH, SYNTH, KPIT Tech has gone down by two to three percent. There is also a boom in pharma, metal and capital goods. But mild pressure is being seen in public sector banks.
Market’s focus today on IT shares
The market’s focus today is on IT stocks. Nifty IT index has moved about 2 percent today. Explaining what is going on in IT stocks, why are these stocks running, CNBC-Awaaz’s Yatin Mota said that the Nifty IT index has lost about 2 percent today. The US Senate has voted for the advance bill. The US Senate has voted to lift the shutdown. With the lifting of the shutdown, growth is possible in the US in the second half. Along with this, there is a surge in demand for AI related projects in the US. There is also an increase in discretionary spending in the US. Tech stocks across the world have risen due to US Fed rate cut. IT stocks have also gained momentum today on the strength of BFSI and insurance verticals.
Good opportunities for value buying in IT after the decline
A huge decline was seen in the Nifty IT index from 30 October to 7 November. During this period it registered a decline of about 2.7 percent. This decline comes after a rise of more than 7 percent in early October. Better than expected second quarter results and positive outlook for the second half of the current financial year had strengthened investor sentiment. Despite delays in talks on the US-India trade deal, sentiment had improved.
Hopes rise for US shutdown ending
The US Senate on November 9 passed a resolution aimed at reopening the federal government and ending the 40-day shutdown. Prashant Newnaha of TD Securities said the markets will be supported by the end of the longest-running shutdown in the US. “Hopefully the next step will be a House vote on Wednesday and the government will resume work this Friday.”
Indian IT companies earn a large part of their revenue from the American market. The possibility of ending the shutdown in America has increased investor confidence in these stocks.
Jefferies in largecap IT stocks in September TCS and Infosys Was selected as my top pick. It said both are “well positioned” to deal with the $100,000 visa attack on the Indian IT sector. In midcap stocks, Jefferies coforge Like it.
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