The Indian stock market settled higher on Tuesday, September 9, largely due to solid gains in Infosys shares after the IT major announced that its board would consider a proposal for buyback of fully paid-up equity shares on Thursday, September 11.
Infosys alone contributed over 200 points to the gains in the Sensex index which ended 314 points, or 0.39 per cent, higher at 81,101.32. The Nifty 50 settled at 24,868.60, up 95 points, or 0.39 per cent.
Other IT stocks, including TCS, Tech Mahindra, and HCL Tech, also featured among the top contributors to the gains in the benchmarks.
The BSE Midcap and Smallcap indices posted modest gains, ending 0.20 per cent and 0.22 per cent higher, respectively.
Investors earned about ₹1 lakh crore in a single session as the overall market capitalisation of firms listed on the BSE rose to nearly ₹454 lakh crore from ₹453 lakh crore in the previous session.
Indian stock market: 10 key highlights from the day
1. What drove the Sensex, Nifty 50 today?
Gains led by select IT heavyweights helped the benchmark indices end higher. Shares of Infosys jumped after the company announced a share buyback, which influenced sentiment for other IT stocks. The Nifty IT index ended nearly 3 per cent higher with all components in the green.
“The Indian stock market closed higher, buoyed by strength in IT stocks following Infosys’ announcement that its board will consider a share buyback on September 11. The news lifted sector sentiment, pushing the Nifty IT index up nearly 3 per cent, with Infosys emerging as the top gainer. This optimism helped offset arising concerns over the US administration’s proposed HIRE Act, which could increase compliance costs for Indian IT companies,” said Hariprasad K, SEBI-registered research analyst and the founder of Livelong Wealth.
2. Top gainers in the Nifty 50 index today
As many as 33 stocks ended higher in the Nifty 50 index. Shares of Infosys (up 4.85 per cent), Dr. Reddy’s Laboratories (up 3.50 per cent), and Wipro (up 2.81 per cent) ended as the top gainers in the index.
3. Top losers in the Nifty 50 index
Shares of Trent (down 1.74 per cent), Eternal (down 1.20 per cent), and UltraTech Cement (down 0.81 per cent) ended as the top losers in the index.
4. Sectoral indices today
Nifty IT clocked a solid gain of 2.76 per cent. Pharma (up 0.86 per cent), Healthcare (up 0.77 per cent), and FMCG (up 0.58 per cent) also clocked decent gains.
Nifty Bank and Financial Services indices ended almost flat.
On the other hand, Nifty Realty and Oil and Gas indices slipped by about 0.30 per cent each.
5. Most active stocks in terms of volume
Vodafone Idea (80.76 crore shares), Salasar Techno Engineering (11.37 crore shares), and Jaiprakash Power Ventures (7.96 crore shares) were the most active stocks in terms of volume on the NSE.
6. Nearly 20 stocks jump over 12% on BSE
Some 18 stocks, including Franklin Leasing and Finance, Smruthi Organics, India Tourism Development Corporation, Lasa Supergenerics, and Precision Camshafts, jumped over 12 per cent on the BSE.
7. Advance-decline ratio
Out of 4,281 stocks traded on the BSE, 1,997 advanced, while 2,125 declined. Some 159 stocks remained unchanged.
8. 144 stocks hit 52-week highs
Maruti Suzuki India, Mahindra & Mahindra, Eicher Motors, TVS Motor Company, and Cummins India were among the 144 stocks that hit their 52-week highs in intraday trade on the BSE.
9. 58 stocks hit 52-week lows
Refex Industries, Praj Industries, and Deepak Nitrite were among the 58 stocks that hit their 52-week lows on the BSE.
10. Nifty 50 technical outlook
According to Nilesh Jain, head technical and derivatives research analyst at Centrum Broking, momentum indicators and oscillators have turned positive. The RSI crossed above the 50 mark, suggesting a short-term bullish momentum.
However, the index remains at a critical juncture as it nears the key resistance zone around the 25,000 level, which continues to act as a significant hurdle.
“A decisive breakout above this level is essential to confirm the start of a fresh upward leg. On the downside, the immediate support of 21-DMA is placed at 24,720,” said Jain.
Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, said a small candle was formed on the daily chart with minor upper and lower shadows and with almost identical open and close.
“This market action indicates the formation of a doji-type candle pattern. But, having formed this pattern amidst a broader range-bound action, the predictive value of this pattern could be less,” said Shetti.
“The underlying trend of Nifty remains positive with choppy movement. Nifty is apparently creating a base for a decisive upside breakout of the important resistance zone of around 24,900-25,000 levels (down-sloping trend line and recent weekly highs). Immediate support is placed at 24,750,” Shetti said.