IT stocks lent some support to benchmark indices; Sensex up 566 points
New Delhi [India], January 22 (ANI): Indian stock indices rebounded marginally after the Tuesday bloodbath, supported by a sharp rise in IT sector stocks.
. Among the sectoral indices, Nifty IT rose 2.1 per cent. On the contrary, Nifty realty slumped a sharp 4.56 per cent.
The benchmark indices rebounded amidst heightened volatility following better-than-expected results from a major private bank, said Vinod Nair, Head of Research, Geojit Financial Services.
Indian markets are witnessing volatility amid uncertainty over US President Donald Trump's plans for BRICS, of which India is a member, Investors anticipate potential disruptions to global trade during Trump presidency.
"The IT sector led gains, recovering from recent losses, while mid and small-cap stocks continued to underperform due to valuation concerns," said Nair.
Apart from banking and IT, most sectors posted losses, with the realty sector being the hardest hit for consecutive days.
"The news that the US is considering lower tariffs on China may provide temporary relief, but underlying concerns persist. A moderation in the dollar index could potentially halt rupee depreciation," added Nair.
Despite today's rise, Shrikant Chouhan, Head Equity Research, at Kotak Securities asserts that the short-term trend of the market remains weak.
Weak domestic economic growth has also been reflecting on the stock markets.
In 2024, Sensex and Nifty accumulated a growth of about 9-10 per cent each. In 2023, Sensex and Nifty gained 16-17 per cent, on a cumulative basis. In 2022, they gained a mere 3 per cent each. Weak GDP growth, foreign fund outflows, rising food prices, and slow consumption were some of the hurdles, keeping many investors at bay in 2024.
Sensex now remains around 10,000 points lower than its all-time high of 85,978 points. Sensex has so far slumped 3 per cent this New Year. (ANI)
(The story has come from a syndicated feed and has not been edited by the Tribune Staff.)
