Thursday, October 10, 2024 02:19 PM
Indian shares open higher, led by IT stocks and positive auto sector performance, reflecting investor optimism and market recovery.
On Tuesday, Indian shares experienced a positive start, primarily driven by a surge in information technology (IT) stocks. This upward trend in the stock market comes as investors react to the latest monthly sales data from the auto sector, which also showed promising results. The Nifty 50 index, a key benchmark for Indian equities, climbed by 0.18%, reaching 25,860.25 points by 9:32 a.m. IST. Meanwhile, the S&P BSE Sensex, another important index, increased by 0.23% to settle at 84,495.14 points.
In early trading, nine out of thirteen major sectoral indexes reported gains, with the IT sector leading the charge. The IT index rose by 0.75%, buoyed by a notable 3.5% increase in Tech Mahindra's stock price. This rise followed an upgrade from CLSA, a prominent financial services firm, which changed its rating on Tech Mahindra from “hold” to “outperform.” The firm also raised its target price for the stock, citing expectations of an expansion in profit margins.
Tech Mahindra emerged as the top percentage gainer on the Nifty 50 index, with nine out of ten companies in the Nifty IT index showing positive movement. Analysts noted that favorable comments from US Federal Reserve Chair Jerome Powell regarding the health of the US economy have further fueled interest in Indian IT companies. This is significant because a large portion of revenue for these companies comes from the United States.
In addition to the IT sector, auto stocks also saw a rise, with an overall increase of 0.5% on the day. Heavyweight Mahindra & Mahindra contributed to this growth, with its stock climbing by 1%. This increase followed the announcement that the company’s total vehicle sales for September had grown by an impressive 16% compared to the same month last year.
The current market dynamics reflect a broader trend of recovery and optimism among investors, particularly in the IT and auto sectors. As these industries continue to show resilience and growth, it is essential for investors to stay informed and consider the potential implications for their portfolios. The positive momentum in the stock market not only highlights the strength of these sectors but also suggests a hopeful outlook for the Indian economy as a whole.