NIFTY50 hits new all-time high to trade above 25,100 mark; NIFTY IT soars over 2%

Indian equity benchmark indices are trading in green, with NIFTY50 index hitting a fresh record high by surpassing the level of 25,100 for the first-time ever. After commencing the trading session on a flat note, the NIFTY50 index briefly dipped below the previous trading session’s low. However, buying at lower levels propelling the index to a new all-time high.

What is driving the rally?

The remarkable rally marks the tenth consecutive session of gains for the NIFTY50 index, driven largely by strong performance in IT stocks. IT giants like Infosys (+2.1%) and TCS(+1.1%) have together contributed 61 points to Wednesday’s rally to new highs. The rally in IT stocks is primarily led by bouyancy around Federel Reserve's upcoming rate cuts. IT and Tech stocks tend to gain as central bank adopts dovish stance to control recessionary pressure in the economy.

At present, the NIFTY50 index is up by 82 points, positioned at the 25,100 level, while SENSEX is edging closer to the 82,000 mark, advancing by 245 points.

On the other hand, the Nifty Bank index is underforming, down by 0.16 and trading below the 51,200 mark, weighed down by laggards like ICICI Bank and Axis Bank.

On the sectoral front, the Nifty IT index has emerged as the top performer, surging by 2.24% to hit a fresh record high. The index has gained 20% so far in 2024, delivering its best performance in the month of July since 2022. On the flipside, Nifty Realty (-0.42%) and Nifty FMCG (-0.41%), were the top two losers.

The broader markets were in sync with frontline indices, with the Nifty Smallcap 100 and Nifty Midcap 100 gaining 0.37% and 0.19%, respectively. The market breadth was in favour of advances, with 1,329 stocks gaining compared to 964 declining.