Sasmita Jena
Bengaluru, 29 July 2024
The Nifty IT index, which measures the movement of major IT services and technology firms in India, is likely to take cues from global markets, the outcome of the US Federal Reserve’s interest rate decision, and the Q1 earnings of domestic companies this week.
Despite last week’s rout in Nasdaq, the Nifty IT index showed resilience and ended the week (July 26) up 3.03% at 40,977.35. Bull run in the benchmark indices (i.e. Nifty and Sensex) helped the Nifty IT index to post gains for consecutive weeks.
The share price of TCS closed 1.89% higher in NSE to close at Rs 4,393.65 on last Friday. This was second consecutive week of gain for TCS share after a more than 6% run in the previous week ended July 19. Infosys was the major gainer as its share price increased 4.15% to close at Rs 1,880, while Wipro’s share price moved up 1.79% to close at Rs 524.50 on Friday. HCL Tech ended last week up 3% at Rs 1,638.80 per share.
Tech Mahindra, which announced better-than-expected Q1 earnings last week, gained 2.67% to close at Rs 1,541 on Friday. Among other mid-cap stocks, LTI Mindtree’s share price ended almost flat at Rs 5,780 per share as compared to the previous week. After a fall in the previous week, Persistent Systems share price ended last week at 3.85% up at Rs 4,780.
Coforge was the major gainer among mid-tier IT firms as its share price gained 6.63% up at Rs 6,353 last week. In the last fortnight, the company’s share price had gained more than 12% after its Q1 earnings met street expectations.
Last week, the Nasdaq came under bear grip as the global index fell for the second consecutive week. It closed 3.16% down at 17,357.88 last week. The street was disappointed with the results of major global firms including Alphabet, Tesla, and others, leading to the sell-off. High valuations of tech firms also weighed on the share price of these companies.
