Nifty above 15,500 mark, IT stocks in demand

The key equity indices continued to trade with strong gains in the mid-morning trade. The Nifty traded above the 15,550 mark. IT shares extended rising streak for second consecutive session. Shares surged on value buying after a recent steep correction.

At 11:30 IST, the barometer index, the S&P BSE Sensex, was up 745.41 points or 1.44% to 52,343.25. The Nifty 50 index gained 227.45 points or 1.48% to 15,577.60.

In the broader market, the S&P BSE Mid-Cap index gained 1.58% while the S&P BSE Small-Cap index advanced 2.17%.

The market breadth, indicating the overall health of the market, was strong. On the BSE, 2,334 shares rose and 756 shares fell. A total of 132 shares were unchanged.

Buzzing Index:

The Nifty IT index gained 2.97% to 27,766.55. The index added 3.87% in two trading sessions.

Mphasis (up 5.08%), Coforge (up 4.99%), L&T Technology Services (up 4.27%), Larsen & Toubro Infotech (up 4.22%), Mindtree (up 4.02%), HCL Technologies (up 3.22%), Tata Consultancy Services (up 2.89%), Infosys (up 2.31%), Wipro (up 2.21%) and Tech Mahindra (up 0.77%) advanced.

Stocks in Spotlight:

Escorts rose 0.78% after the company on Monday announced that Ajay Mandhar has tendered his resignation from the post of chief executive officer (CEO), Agri Machinery Business, citing personal reasons. Mandahr also ceased to be key managerial personnel of the company. Shenu Agarwal, president of Agri Machinery and Construction Equipment business, has been assigned the role of CEO of Agri Machinery business, for interim period, till the time a new CEO is appointed by the company.

Bharat Forge advanced 2.47% after the company decided to consolidate its electric vehicle business initiatives under Kalyani Powertrain (KPL), a wholly-owned subsidiary, for a better strategic alignment. The company`s investment committee - strategic business has approved the transfer of its stake in Refu Drive GmbH (Refu), joint venture (JV) company, to KPL subject to receipt of necessary approval from regulatory authorities.

Global Markets:

Most Asian stocks traded higher on Tuesday, as some stability returned to markets after last week`s hefty losses.

South Korea`s central bank on Tuesday said it expects inflation will be higher than earlier projected and that it would closely assess debt repayment burdens to determine whether a half-percentage point interest rate hike in July was appropriate.

Meanwhile, Australia`s central bank says inflation will peak by the end of the year. The Reserve Bank of Australia governor Philip Lowe said in a speech that he expected inflation in Australia to peak at around 7% by the end of the year as pandemic-related supply chain disruptions resolve.

Markets in the U.S. were closed on Monday, 20 June 2022, for Juneteenth National Independence Day holiday.

Investors will monitor incoming data, including existing home sales on Tuesday, to gauge the health of the economy. Fed Chair Jerome Powell will testify before Congress Wednesday and Thursday. His appearance comes after a recent rate hike by three-quarters of a percentage point, the central bank`s biggest increase since 1994.

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