NIFTY50, SENSEX give up early gains to trade flat, IT stocks hold ground
Upstox
2 min read • Updated: March 12, 2024, 11:39 AM
Summary
After falling nearly 1% on Monday, Indian benchmark indices posted a strong recovery in the first hour of Tuesday morning but gave up early gains and are currently trading moderately positive.
After a positive start in the first hour, markets are now trading flat, with the NIFTY50 below the 22,400 level, while the SENSEX trades marginally higher, up 0.2%. HDFC Bank was leading the pack with gains of 2.2% in the first hour, trading at ₹1,460 levels. The rally in HDFC Bank is driven by media reports regarding the listing of its financial services arm, HDB Financial Services.
On the other hand, IT giants like TCS and Infosys are up nearly 1.5% each. TCS is currently trading at its all-time high levels of ₹4,229 per share. Infosys, which holds a 6.2% weightage in the NIFTY 50, is also up by 1.1% at 11:30 am.
The IT stocks will be closely watched as US inflation numbers are set to be released later this week. Inflation numbers in the US and India will determine the next trajectory of interest rates in both economies.
The broader indices are down for the second consecutive day. The NIFTY Smallcap 100 is down another 1.6% on Tuesday. The NIFTY Midcap 100 is also trading nearly 1.1% lower, witnessing selling pressure in tandem with the small-cap index.
In addition to the indices, stocks like ITC are trading lower by 2% after media reports indicated that its major shareholder, British American Tobacco Company, is looking to reduce its stake in the company much earlier than projected.