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Nifty above 17,000 level, IT shares in demand

Published on Mar 17, 2023 11:33

The benchmark indices traded with minor gains in mid-morning trade. The Nifty traded above the 17,000 level. IT stocks witnessed bargain hunting after declining in the past seven trading session.

At 11:30 IST, the barometer index, the S&P BSE Sensex, was up 110.42 points or 0.19% to 57,745.26. The Nifty 50 index gained 35.30 points or 0.21% to 17,020.90.

In the broader market, the S&P BSE Mid-Cap index added 0.38% while the S&P BSE Small-Cap index rose 0.58%.

The market breadth was strong. On the BSE, 2,073 shares rose and 1,174 shares fell. A total of 135 shares were unchanged.

Risk sentiments took a back seat after a consortium of major US private banks announced a $30 billion rescue package for embattled lender First Republic Bank. The package announced by JPMorgan Chase, Morgan Stanley and nine other giants consisted of $30 billion uninsured deposits.

Investors will look ahead to the US Federal Reserve`s meeting next week to see how the central bank will proceed in its fight against inflation in light of the shakeup in the banking sector.

The European Central Bank on Thursday announced a further rate hike of 50 basis points despite of recent turmoil in the banking sector.

Buzzing Index:

The Nifty IT index rose 1.28% to 28,883.65, snapping seven day losses. The index witnessed bargain buying after sliding 5.51% in seven trading sessions.

LTI Mindtree (up 3.71%), Persistent Systems (up 2.44%), HCL Technologies (up 2.35%), Infosys (up 2.28%), L&T Technology Services (up 2.02%), Coforge (up 1.84%), Wipro (up 1.07%), Tech Mahindra (up 0.65%) and Mphasis (up 0.05%).

Tata Consultancy Services (TCS) shed 0.46%. After a successful stint as managing director & CEO during the last 6 years, Rajesh Gopinathan has decided to step down from Tata Consultancy Services (TCS) to pursue his other interests. Gopinathan will continue with the company till 15 September 2023 to provide transition and support to his successor.

The board has nominated K. Krithivasan as the CEO designate with effect from 16 March 2023. Krithivasan will go through a transition with Rajesh Gopinathan and will be appointed as the managing director & CEO in the next financial year.

Stocks in Spotlight:

Hindustan Aeronautics (HAL) gained 2.35%. The Defence Acquisition Council on Thursday (March 16) approved proposals worth Rs 70,500 crore for the Armed Forces & Indian Coast Guard under Buy {Indian-IDDM (Indigenously Designed, Developed and Manufactured)} category. The council, under the chairmanship of Defense Minister Rajnath Singh, has also accorded acceptance of necessity (AoN) for procurement of advance light helicopters (ALH) MK-III from HAL for the Indian Coast Guard.

Lemon Tree Hotels gained 2.10% after the company signed license agreement for a 60 room property in Sri Ganganagar, Rajasthan under its brand "Lemon Tree Hotels". The property is expected to be operational by July 2026 and shall be managed by Carnation Hotels, a wholly-owned subsidiary and the management arm of Lemon Tree Hotels.

Genus Power Infrastructures rose 2.21% after the company announced that it has incorporated Genus Assam Package-2 SPV, a wholly-owned subsidiary of the company on 9 March 2023. Genus Assam Package-2 SPV, is a public limited company, its main object is to manufacture consumption meters for electricity, water or gas, flow meters and counting meters.

Global Markets:

Asian stocks advanced on Friday after major Wall Street banks pledged a deposit of $30 billion in First Republic Bank in an attempt to bolster confidence in the banking system. The group of 11 banks, included Bank of America, Wells Fargo, Citigroup and JPMorgan Chase.

US stocks finished solidly higher Thursday after a consortium of major US private banks announced a $30 billion rescue package for embattled lender First Republic.

Meanwhile, U.S. Treasury Secretary Janet Yellen said the U.S. banking system remains sound and Americans can feel confident that their deposits will be there when needed.

The European Central Bank followed through with the 50 basis point rate hike it flagged at its prior meeting, despite ongoing volatility in the banking sector. It takes the bank`s main rate to 3%.

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