Stock Market News: On Thursday, the benchmark indexes Sensex and Nifty gave up early gains to trade lower as IT shares fell after TCS said that the sector’s challenges persisted in the context of a slowing economy.
Stocks that are sensitive to interest rates increased after the minutes of the US Federal Reserve’s meeting, which were published on Wednesday, showed that the US central bank would delay raising interest rates due to the deteriorating state of the economy.
IndusInd Bank, Axis Bank, SBI, Tata Motors, JSW Steel, ICICI Bank, Maruti, Tata Steel, and M&M all saw gains in early trade among Sensex stocks.
The gains were, however, offset by a more than 1% decline in the largest Sensex loser, TCS, an IT giant.
According to the corporation, the IT industry is still facing challenges due to the weak economy. The largest software exporter in the nation, TCS, announced on Wednesday that its net profit for the September quarter increased by 8.7% to Rs 11,342 crore.
In addition to committing to an approximately Rs 3,300 crore dividend payment, the Tata Group firm has announced a Rs 17,000 crore share buyback.
A decrease was also seen in other IT stocks like Tech Mahindra, Infosys, and Wipro. The benchmark index was also hampered by declines in Reliance, HUL, L&T, and Bharti Airtel.
there are favourable events that can strengthen the market surge.
“Big positives for the market include the steadily lowering dollar index and US bond yields, falling crude, and a substantial decline in FII selling in the cash market. The bulls will get a boost if the US CPI inflation data that is expected tonight falls below 3.6%.
After overnight gains in US markets, Asian markets, including Japan, China, and Hong Kong, were trading higher.
The Nikkei 225 in Japan increased by 1.48 percent, the Hang Seng in Hong Kong increased by 1.75 percent, and the Kospi in South Korea increased by 0.93 percent.
Domestically, the Sensex surged by 393.69 points, or 0.6%, to end the day at 66,473.05 while the Nifty gained 121.50 points, or 0.62 percent, to end the day at 19,811.35.
According to statistics available with the BSE, foreign institutional investors (FIIs) continued to be net sellers on Wednesday, selling shares worth Rs 421.77 crore.