DBT Bureau
Bengaluru, 3 June
Nifty IT index, which measures the movement of major IT services and technology firms in India, opened higher on Monday as broader market cheered the exit polls’ prediction of BJP-led NDA coming back to power for the third time.
The Nifty IT index is trading around 32,625, up 0.74% from Friday’s close. All major indices are trading in the green at the time of writing this report. Nifty 50 is trading at 2.7% higher at 23,145 on early trade, while Sensex is trading 2.64% higher at 75,995 on Monday.
Though Indian IT services players draw most of their revenues from the US and Europe, overall positive sentiment is driving IT stocks higher.
While Infosys is trading 0.43% higher at Rs 1,414, market leader Tata Consultancy Services is trading 1.70% higher at Rs 3,734 in the National Stock Exchange. Wipro’s share price is up Rs 443.85 in the morning trade.
Among mid-cap stocks, Coforge is up 0.7% at Rs 5,001, while Persistent Systems is trading 0.19% lower at Rs 3,401 per share.
As the rupee strengthened against the US dollar in the morning trade, most analysts say it may not be favourable for IT stocks in the short run.
India is awaiting the results of the general elections in 2024, which will be announced tomorrow. The market is anticipating more economic reforms if the Modi government comes back to power for the third time.
(This market report is not a recommendation to buy or sell any specific stock. Please consult your financial advisor before taking positions)