IT stocks helped Indian benchmark indices reach all-time highs on Friday as strong economic data out of the United States eased fears of a slowdown and improved sentiment.
The Nifty 50 Index rose 0.72% to a high of 19108.20, while the S&P BSE Sensex rose 0.78% to 64414.84 as of 10:05 AM IST.
Medium and small businesses hovered around all-time highs and 52-week highs, respectively.
All 13 major sector indices posted gains, with the heavyweight IT index up 1.83%.
Infosys rose 2.5% and was the biggest gainer in the Nifty 50.
IT companies derive a large portion of their revenue from customers in the United States, and they have been buoyed by strong economic data from that country.
An upward revision to first-quarter GDP, a surprising drop in jobless claims and positive results from the US Federal Reserve’s stress test have allayed concerns about growth in the world’s largest economy.
The Nifty 50 index is up nearly 10% this quarter and is on track to post its best quarter since September 2021.
Analysts cited strong inflows from abroad, lower inflation and steady growth in corporate earnings as the main reasons for the rally in Indian stocks.
“The current bullish momentum may continue and 19000-19200 range may be the next resistance for Nifty in the near term,” said Deepak Jasani, Head of Retail Research at HDFC Securities.
Among individual stocks, Power Grid rose 3.82% to a record high after the company approved an investment proposal of Rs 1.64 billion.
Shares of Multi Commodity Exchange in India fell 10% after the company extended the services of software vendor 63 Moons Technologies for six months at a higher cost.
($1 = 82.0972 Indian rupees)
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