Sasmita Jena
Bengaluru, 22 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 the Union Budget, which is scheduled to be announced on July 23 (Tuesday). The domestic index will also look at Nasdaq for direction as the key US benchmark index is expected to react to Joe Biden’s withdrawal as Democratic Party nominee for the upcoming Presidential elections. He has endorsed Kamala Harris, the present Vice President, as the democratic nominee.
Meanwhile, Nifty IT index was one of the major sectoral gainers last week as earnings of top four IT services firms rekindled hopes of a likely recovery in the coming quarters. Nifty IT index gained 2.60% to end last week at 39,923.30.
The share price of TCS closed 6.77% higher in NSE to close at Rs 4,298, making it the major gainer among large-cap stocks. Infosys gained 6.61% to close at Rs 1,789.35, while Wipro’s share price moved up 2.39% to close at Rs 557 on Friday. HCL Tech ended last week up 5.07% at Rs 1,592 per share.
Similarly, among mid-cap stocks, LTI Mindtree’s share price ended up 4.60% up at Rs 5,745 per share, while Coforge ended last week 6.04% up at Rs 5,985.95. However, Persistent Systems ended last week with 1.58% down at Rs 4,572.
Tech Mahindra is another mid-cap stock, which gained 1.33% up Rs 1,486.95 last week.
Last week, Nasdaq lost of its momentum as the index closed 4.11% down at 17,726.94 last week. With Joe Biden bowing out of the presidential race, the US stock market is likely to react on Monday. Especially, technology stocks will take direction from the next Democratic candidate on immigration, technology transfer and other major issues.
In the domestic market, many mid-tier IT firms will announce their results this week. Budget pronouncements on technology spending will also influence the technology stocks.
