Nifty IT Index Achieves 11.7% Surge, Strongest in 18 Years
Indian equity markets see significant gains, led by IT stocks, marking the strongest weekly performance since April.
Nifty 50 rises 2.7%, with BSE Sensex up 3.11% this week.
Nifty IT index records an 11.7% increase, the highest weekly gain in 18 years.
Foreign institutional investors continue to sell, while domestic investors remain active buyers.
Indian equity markets have experienced a robust rally for the second consecutive week, achieving their most substantial gains since April. The Nifty 50 index climbed by 2.7%, reflecting strong investor confidence, particularly in the IT sector, which was buoyed by positive Q2 earnings reports. This surge occurred despite ongoing challenges, including high crude oil prices and persistent selling pressure from foreign institutional investors (FIIs).
During the week, the BSE Sensex increased by 2,256.94 points, or 3.11%, closing at 74,729.27. The Nifty 50 also saw a significant rise, gaining 625.7 points, or 2.77%, to reach 23,146.15. The Nifty Midcap 100 index rose by 0.6%, driven by notable performances from companies like Tata Elxsi and KPIT Technologies, while other firms such as Yes Bank and Fortis Healthcare lagged behind.
The Nifty IT index stood out with an impressive 11.7% surge, marking its largest weekly gain in 18 years, primarily due to better-than-expected earnings. Other sectors also performed well, with the Nifty Media index increasing by over 6% and the Nifty Auto index gaining 3%. However, the Nifty Healthcare index saw a decline of 1%, indicating mixed results across various sectors.
Market capitalization for BSE-listed companies rose by over Rs 7 lakh crore during the week, with Tata Consultancy Services (TCS) emerging as the leading contributor to this growth. In contrast, companies like Larsen & Toubro and InterGlobe Aviation faced significant losses. Meanwhile, FIIs continued their selling streak for the eighth week, offloading equities worth Rs 8,990.50 crore, while domestic institutional investors (DIIs) purchased equities worth Rs 7,812.81 crore, providing crucial support to the market.
The Indian rupee ended its two-week decline, appreciating by 178 paise to close at 94.95 per dollar on October 16. This recovery came after trading within a range of 94.67 to 95.99 against the US dollar throughout the week, signaling a potential stabilization in the currency market as investor sentiment improves.
