Sasmita Jena
Bengaluru, 17 August 2024
Nifty IT Index, which measures the movement of major IT services and technology firms in India, posted one of the best weekly performances last week ended August 16, 2024.
The Nifty IT Index took cues from domestic and the US markets, which gained as recessionary fears in the US economy receded. Recent data emerging from the US, including benign consumer price inflation, strong retail sales and low weekly jobless claims quelled fears of a recession in the US, which is a key revenue demography for Indian IT firms.
The IT index gained 2.89% last week to close at 40,878, making it one of the best performers in the Nifty50 index. Overall buying in the IT index helped the Nifty to end the week with a gain. Nifty closed the week up 0.71% at 24,541 last week.
Both large cap and mid cap stocks lent support:
Last week, investors took buying interest in both large and mid-cap IT firms as fears of US recession receded. India’s biggest IT firm, TCS’ share price gained 4.19% to close the week at Rs 4,414.20 on NSE. Infosys was another major gainer as its stock price moved 5.32% up at Rs 1,856.95. Similarly, HCLTech posted a gain of 4.91% to close at Rs 1,668.70, while Wipro’s share price increased 4.45% to Rs 516.10 last week.
Among midcaps, Mphasis was the major gainer as the company’s large BFSI (banking, financial services & insurance) portfolio was expected to perform better in coming years. The share price of Mphasis gained 7% at Rs 2,908 last week. L&T Technology Services gained 3.45% to close the week at Rs 5,190.20 on investors’ buying interest.
LTIMindtree gained 2.53% to close the week at Rs 5,564.95, while Tech Mahindra posted a gain of 5.42% at Rs 1,585 during this period.
Nasdaq ended the week with major gains:
As recessionary fears over the US economy receded, Nasdaw posted a gain of 4.99% at 17,631.72 last week. After consecutive weeks of losses, Nvidia’s share price gained 17.19% at $124.58 last week. Intel’s share price gained 5.22% to $20.87, while Amazon’s share price gained 5.34% to close the week at $177.
