Tech stocks boost Nifty to fresh lifetime high, Sensex rises 200 pts

From the Sensex pack, was the top gainer, rising over 4% after posting a 6.7% rise in June-quarter revenue and projecting growth in most verticals and geographies for the ongoing quarter. , , , , , and also opened higher, while , , , , and opened lower.

Meanwhile, Indian IT companies, which earn a significant share of their revenue from the US, also led the rally over the last two weeks, bolstered by firming bets on a September U.S. rate cut and largely upbeat results from .

The odds of a 25 basis point rate cut have risen to about 90% from about 70% a week ago, according to the CME FedWatch Tool, on the back of recent soft labour market and inflation data.

However, domestic retail inflation accelerated for the first time in five months due to a sharp rise in food prices, data showed on Friday.

On the sectoral front, Nifty IT rose 0.6%, and Nifty Auto rose 0.62%. On the other hand, Nifty FMCG, Metal, Private Bank, and Realty opened with cuts.

Among the individual stocks, (DMart) rose 4.3% after the company posted a 17.5% rise in first-quarter net profit on Saturday.

IREDA shares rose over 9% after the firm reported a net profit of Rs 384 crore for the quarter ended June 2024, which was a 30% uptick year-on-year.

Experts View
"Latest inflation data in the US indicates a rate cut by the Fed in September. This is likely to keep the US market buoyant with positive impact in India, too. However, valuations in India are moving to elevated levels. Investors have to be cautious about the excessive valuations in the momentum stocks which are moving to frothy levels," said V K Vijayakumar, Chief Investment Strategist, .

"IT results from TCS and HCL Tech indicate improving prospects which the market is discounting now. But the growth projections of IT companies remain low and, therefore, a sharp restart from the present levels is unlikely," Vijayakumar said.

Deven Mehata, Research Analyst at Choice Broking, said, "Nifty can find support at 24,400 followed by 24,300 and 24,250. On the higher side, 24,600 can be an immediate resistance, followed by 24,650 and 24,700."

Global Markets
Asian shares were trading 0.3% lower as investors grapple with political uncertainty after the attack on U.S. presidential candidate Donald Trump.

Japan's Nikkei was shut, but futures were trading at 41,285 compared to a cash close of 41,190.

S&P 500 futures and Nasdaq futures were both marginally higher

FII/DII Tracker
The foreign institutional investors (FIIs) turned net buyers on July 11 as they bought equities worth Rs 4,021 crore, while domestic institutional investors extended their selling as they sold equities worth Rs 1,651 crore.

Crude Oil
Oil prices fell for a second day on Monday as the dollar gained ground amid political uncertainty in the U.S. following an attack on U.S. presidential candidate Donald Trump while investors eyed the progress of talks for a Gaza ceasefire.

Brent crude futures fell 55 cents, or 0.7%, to $84.48 a barrel after settling down 37 cents on Friday. U.S. West Texas Intermediate crude was at $81.65 a barrel, down 56 cents, or 0.7%.

Currency Watch
The Indian rupee fell 4 paise to 83.55 against the US dollar in early trade. The dollar index, which tracks the movement of the greenback against a basket of six major world currencies, rose 0.11% to 104.2 level.

(With inputs from agencies)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)