Nifty IT climbs 2.6%, all 10 stocks end in green
The Nifty IT index saw a sharp 2.59% rise on Wednesday, hitting 31,429.35, fueled by positive global and domestic factors. The decline in the US inflation rate to 3.2% in October from 3.7% in September has sparked hope that the US Federal Reserve may take a more cautious stance on the rate hike. Moreover, India's CPI inflation eased to 4.87% in October, marking the lowest point in four months.
US inflation data impact on stock market
VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, as told to Mint, stated, "The October US inflation data is a game changer for the stock market. The 3.2% October inflation print is lower than expected." "More importantly, the mere 0.2% month-on-month increase in core inflation is hugely positive. The takeaway from these numbers is that the Fed is done with rate hikes, and the timeline for rate cuts in 2024 is likely to be advanced," Vijayakumar added.
How each stock in Nifty IT performed?
All 10 components of the Nifty IT index traded positively, with Mphasis leading the pack with an impressive 5.46% rally to Rs. 2,268.90. Other significant gainers included Coforge (up 4.99%), Tech Mahindra (up 3.77%), LTIMindtree (up 2.50%), L&T Technology Services (up 3.06%), Wipro (up 2.57%), Infosys (up 2.8%), TCS (up 2.31%), HCL Tech (up 1.36%), and Persistent Systems (up 0.25%). This uptick comes after the Nifty IT's 3.78% decline in October, marking the largest monthly drop since December 2022.
