Nifty IT Index Surges on Nvidia’s Strong Earnings
By Business Desk
India’s Nifty IT Index jumped 3.51%, its biggest gain in two months, boosted by Nvidia’s strong earnings outlook and positive forecast, adding Rs 85,026 crore to market cap.
The Nifty IT Index surged by 3.51% on Friday, marking its most significant single-day gain in two months. This rally was primarily fueled by robust earnings and an optimistic forecast from Nvidia.
This strong performance led to an increase of Rs 85,026 crore in the market capitalization of the top 10 IT companies.
IT Sector Performance Drivers
- TCS recorded gains.
- Infosys recorded gains.
- HCL Technologies recorded gains.
- Wipro recorded gains.
Vinod Nair, Head of Research at Geojit Investments, attributed the IT sector’s strong showing to Nvidia’s impressive results and positive guidance. This development bolstered confidence in ongoing AI-related investments across the industry.
Broader Market Snapshot
The broader market also closed positively, with the Sensex and Nifty registering gains. Market breadth on the BSE was positive, indicating more advancing stocks than declining ones.
- Sensex gained 0.43%.
- Nifty gained 0.35%.
Ankur Punj, Managing Director at Equirus Wealth, highlighted that the strong performance of IT and banking shares, combined with an overnight surge in the tech-heavy Nasdaq, provided significant momentum to local IT stocks.
Institutional Flows & Sectoral Shifts
Provisional data revealed distinct activity from foreign and domestic institutional investors.
- Foreign portfolio investors (FPIs) sold shares worth Rs 5,039.80 crore.
- Domestic institutional investors (DIIs) purchased shares valued at Rs 5,183.93 crore.
Beyond IT, several other sectors posted strong gains, while some faced declines.
- Top gainers included metals, healthcare, and pharma.
- Primary losers were consumer durables and FMCG.
Collectively, investors’ wealth increased by Rs 1.28 lakh crore, pushing the BSE’s total market capitalization to Rs 492.82 lakh crore.
Weekly Performance & Forward Outlook
Despite Friday’s gains, both benchmark indices recorded weekly declines, extending a notable streak.
- Sensex declined 0.36% for the week, marking its third consecutive weekly loss and the longest such streak in five months.
- Nifty declined 0.31% for the week, also extending its losing streak to three weeks.
- Conversely, the broader BSE Midcap index posted a weekly gain of 0.50%.
- The BSE Smallcap index also saw a weekly gain of 0.59%.
Looking ahead, investors are expected to closely monitor several key economic indicators. These include the Fed Chair’s commentary, upcoming US jobs data, global business sentiment reports, and domestic GDP figures to gauge future growth and global interest-rate trends.