Market rallies sharply in IT, real estate stocks
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New Delhi (Uttam Hindu News): IT stocks were the biggest contributor to the strong rally of over 800 points in the Indian market on Thursday after the US Fed gave a dovish message on interest rates. Sensex is up 840 points at 70,424.87, while Nifty is up 235 points at 21,161.70. IT indices are up more than 2 per cent. Mphasis is up 6 per cent, Coforge is up 5 per cent, LTIM is up 3 per cent, Tech Mahindra is up 3 per cent and HCL Tech is up 3 per cent.
The real estate index is up more than 3 percent. Brigade is up 4 percent, Phoenix is up 4 percent, Godrej Properties is up 4 percent. V.K., chief investment strategist at Geojit Financial Services. Vijayakumar says the Fed’s clearly dovish message on Wednesday has set the stage for a rally in India, and it could take the market to new highs ahead of the general elections. The Fed’s message on Wednesday concluded that the cycle of tightening is over and a rate cut in 2024 is possible.
Fall in US 10-year yield to 4 per cent will boost capital inflows into India. Large caps will benefit the most. There is a possibility of attracting purchases in IT also. Euphoria could also lift mid and small caps. But there is no valuation comfort in this segment, he said.
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