IT Stocks Soar As Metals, FMCG, Others Join Market Rally 

Mumbai, July 29: Indian equities ended sharply higher on Wednesday. The Nifty 50 rose 1.1% to 24,250.20, while the Sensex gained 1.16% to 77,654.60, marking the Nifty’s biggest single-day percentage gain since June 12. Fourteen of 16 major sectors ended higher, while mid- and small-cap stocks also advanced. 

IT Stocks Continue Climb 

Information technology stocks led markets, with the Nifty IT index rising 2.3% and extending its gains over four sessions to 9.1%. The sector, which had been hit by concerns that artificial intelligence could disrupt traditional IT services, saw strong buying ahead of the US Federal Reserve’s decision on interest rates later this day. 

The Indian IT stocks had seen steep corrections in recent times amid concerns over AI disrupting their business models. The buying in the sector provided a major boost to the benchmarks, with Infosys among the top Nifty 50 gainers. 

The strength in Indian IT stocks came amid a selloff in Asian chipmakers, as earnings from South Korean chipmaker SK Hynix failed to meet lofty estimates despite a more than sixfold rise in quarterly profit. Indian equities potentially benefited from a rotation away from AI-linked trades. 

Metals Gain As Hindalco Leads Buying 

Metal stocks also rallied, with Hindalco Industries among the top gainers on the Nifty 50. The stock posted gains of 2.8%. Among other stocks on the sectoral index, Steel Authority of India gained 3% while Tata Steel advanced 2.5%. Jindal Steel was another notable gainer, rising 3.2%. National Aluminium Company or Nalco also rose 3%.  

FMCG Stocks Rise, HUL Jumps 4.7% 

FMCG stocks also witnessed strong buying, with Hindustan Unilever rising 4.7% and recovering some of the losses recorded after its quarterly earnings announcement a day earlier. 

The stock’s rebound came as analysts remained optimistic about the company’s growth outlook, helping lift the broader consumer segment. Besides HUL, other notable gainers on the sectoral index include Patanjali Foods and Varun Beverages which rose 4.14% and 4%, respectively. 

Pharma, Banking, Infra Stocks Join Rally 

Pharmaceutical stocks advanced alongside telecom and private banking shares, contributing to gains across 14 of the 16 major sectors. 

The broad-based buying indicated that the day’s rally was not confined to a single theme. While IT stocks remained the primary driver of the benchmark gains, buying in pharma, telecom and private banks helped reinforce the positive market tone. 

The broader market also participated in the recovery, with the Nifty Smallcap 100 index gaining 1.5% and the Nifty Midcap 100 rising 0.8%. The stronger performance of smaller stocks indicated improving risk appetite among domestic investors. 

Infrastructure major Larsen & Toubro gained 2.6% after reporting a rise in quarterly profit, supported by strong order inflows. The stock’s performance added further strength to the Nifty Infrastructure index. 

The gains in L&T, along with buying in metals, IT, FMCG, pharma and banking, underscored the broad-based character of Wednesday’s rally. 

Fed Decision In Focus 

Investors awaited the US Federal Reserve’s policy decision later in the day. The central bank is widely expected to keep interest rates unchanged. 

Overall, Indian equities benefited from a combination of sector rotation, renewed foreign buying and a continued rebound in beaten-down IT stocks. The market’s ability to sustain the recovery will now depend on the Fed’s policy signal, global risk appetite and whether investors continue to rotate away from expensive AI-linked trades towards markets and sectors offering relatively better valuations. 

Source

•  NSE