Sensex jumps over 700 points to hit lifetime high, Nifty eyes 22,100: Key factors behind today's surge

Indian equity benchmarks on Monday rose sharply to scale their fresh lifetime peaks. The 30-share BSE Sensex pack soared 720 points to hit an all-time high of 73,288.78 and the broader NSE Nifty index moved over 187 points to touch a record peak of 22,081.95.

Such was the rise in the domestic bourses that around Rs 1.9 lakh crore of BSE market capitalisation (m-cap) was generated. Investor wealth, as suggested by the BSE m-cap, rose Rs 1.92 lakh crore to Rs 375.21 lakh crore compared with a valuation of Rs 373.29 lakh crore recorded in the previous session.

Here are the key reasons behind the stock market rise:

IT stocks

The IT index, Nifty IT, surged as much as 3.85 per cent. Shares of Wipro Ltd jumped 13.1 per cent today following better-than-expected revenue in a seasonally weak quarter, while HCLTech climbed 5 per cent after reporting net profit above estimates.

Wipro, Tech Mahindra, HCLTech, LTIMindtree and Infosys were the top Nifty 50 gainers, adding between 3 per cent and 13 per cent.

IT stocks added 4.79 per cent during the previous trading session, led by the rise in Tata Consultancy Services (TCS) and Infosys after their third quarter results.

The ongoing rally in technology sector may continue, said Akshay Bhagwat, Senior Vice-President, Derivatives Research at JM Financial Services, told Business Today TV.

Banks

The strong upward move was supported by banking counters, especially private lenders. Index heavyweight HDFC Bank was the top gainer in the BSE pack. The stock alone contributed positively to the around 218-point climb.

Railway counters

Some of the railway stocks hogged the limelight today after it was reported that Budget allocation for the sector could see a record rise. Shares of Indian Railway Finance Corporation Ltd (IRFC) and Rail Vikas Nigam Ltd (RVNL) zoomed up to 18.63 per cent.

 

 

Also read: Stock recommendations by analyst for January 15, 2024: BoI, L&T and Sonata Software

Also read: Multibagger stock hits record high as firm announces record date for bonus issue