Buoyed by renewed buying interest, the benchmark indices Nifty and Sensex closed at a new high on the back better than expected financial results posed by Tata Consultancy Services and other corporates in the coming week.
Nifty 50 hit a fresh all-time high at 24,592, while the Sensex made a fresh peak of 80,894 during the trading session. However, profit-booking resulted in Nifty closing with a gain of 186 points at 24,502 points while Sensex ended the day at 80,519 after adding 622 points over previous close.
Majority of the sector ended in green with buying seen in IT, oil and gas and banking. IT saw a fresh rally and was up 4 per cent after TCS reported better financial numbers in June quarter.
Momentum to stay
Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services, said after consolidating in the last few days, Nifty recovered smartly to make a fresh high led by IT heavyweights.
“We expect this momentum to continue supported by the expectation of healthy quarterly results, hope of a rate cut and a pre-Budget rally,” he added.
On Monday, markets will react to inflation data and key financial results including Jio Financials, HDFC Life, Asian Paints, LTI Mindtree, Infosys, Havells, Wipro, JSW Steel and Paytm.
Krishna Appala, Sr. Research Analyst, Capitalmind Research, said TCS results have provided a much-needed boost to the IT sector, where sentiment has been sluggish and valuations appear reasonable.
PSUs are currently leading the market, particularly those in the Railways, defence, shipbuilding, power financing and industrial sectors, he added.