State-owned firms power Indian stocks to record closing high
Tuesday, 16 July 2024
BENGALURU, July 15 (Reuters): India's blue-chip indexes logged record closing highs on Monday, led by gains in state-owned companies, with mid-cap stocks also extending their record run after a healthy start to the earnings season.
The NSE Nifty 50 rose as much as 0.54 per cent to a record high of 24,635.05 during the session. It settled 0.35 per cent higher at 24,586.7, while the S&P BSE Sensex added 0.18 per cent to end at 80,664.86.
Both the benchmarks have logged record closing highs for two straight sessions since TCS and HCLTech posted higher quarterly revenue, signalling a recovery in demand for IT companies and starting the earnings season on a strong note.
Investors' optimism is driven by the better-than-expected results from the IT companies and positive expectations from the national budget due on July 23, said Vinod Nair, head of research at Geojit Financial Services.
Analysts expect the government to continue with its focus on capex-linked sectors like infrastructure and manufacturing, while also announcing measures to boost consumption.
On the day, state-run explorer Oil & Natural Gas Corp climbed 5 per cent, the most on the Nifty, and hit a record high after multiple block deals at a price premium. The oil and gas index added 2 per cent.
Meanwhile, State Bank of India, India's top public sector lender, jumped 2.65 per cent after raising its marginal cost of lending rate (MCLR).
The likelihood that its peers could do the same powered state-owned banks about 3 per cent higher, with all 12 constituents logging gains.
The more domestically-focussed mid-cap index rose 0.86 per cent to a record high, for the fourth time in six sessions, while, small-cap index advanced 0.52 per cent.
IT stocks hit a record high during the session, boosted by HCLTech, but reversed to close 0.29 per cent lower. That, said analysts, was due to profit booking after an 8 per cent rally in the two weeks on strong results and firming expectations of a Rate cut in the US, a key revenue geography.