Nifty and Sensex Snap Losing Streak as IT Stocks Lead Market Recovery

Market Performance

Indian markets bounced back today, ending a brief losing streak as positive global cues lifted investor sentiment. The Sensex closed up 288.45 points (0.35%) at 83,504.73, while the Nifty 50 gained 78.15 points (0.31%) to 25,570.45.

Most sectoral indices displayed a mixed trend, but the Nifty IT index emerged as the top gainer, reflecting renewed buying interest in IT stocks. Auto, Financial Services, Metal, Pharma, Healthcare, Consumer Durables, and Oil & Gas also ended higher, posting modest gains.

On the downside, FMCG, Realty, PSU Bank, and Media sectors recorded losses, with Media seeing the sharpest decline. Overall, the market witnessed selective buying, concentrated in IT and cyclical stocks.

IT Stocks Lead the Rally

The Nifty IT index climbed nearly 2%, snapping a six-day losing streak. Investor sentiment was bolstered by optimism surrounding a potential resolution to the prolonged US government shutdown, which has been creating uncertainty for companies with significant US exposure.

Key points:

• Infosys led the gains, trading higher by nearly 3%.
• HCL Tech, Wipro, LTI, Mindtree, and Mphasis rose around 2% each.
• TCS, Coforge, Persistent Systems, and Tech Mahindra gained over 1% each.

The IT rally reflects renewed confidence as investors returned to value buying following the sharp corrections observed earlier.

Market Context

The Nifty IT index had fallen nearly 2.7% between October 30 and November 7, after a strong October rally where it surged more than 7%. The earlier gains were driven by better-than-expected quarterly results and positive market sentiment for the second half of the year.

Broader Market Summary

• Sensex: 83,504.73 (+288.45 points, +0.35%)
• Nifty 50: 25,570.45 (+78.15 points, +0.31%)
• Top IT gainers: Infosys, HCL Tech, Wipro, TCS, Coforge
• Other sectoral performers: Auto, Financial Services, Metal, Pharma, Healthcare, Consumer Durables, Oil & Gas
• Sectors in red: FMCG, Realty, PSU Bank, Media

The market recovery today was selective, with IT and cyclicals driving the momentum. The broader picture indicates cautious optimism as investors react to global cues, US policy developments, and sector-specific dynamics.

Summary

Indian markets rebounded today, breaking a three-day losing streak. The Nifty IT index led the charge, gaining nearly 2%, supported by key IT stocks like Infosys, HCL Tech, and Wipro. The Sensex and Nifty 50 also recorded modest gains as selective buying returned across sectors.

The market action reflects a cautious yet optimistic sentiment, with IT and cyclical sectors showing resilience amidst global uncertainties and recent corrections.