Sensex Surges Over 300 Points Driven by Wipro and TCS Performance

In Tuesday morning trade, the BSE Sensex surged by more than 300 points, propelled by heavyweight IT stocks such as Wipro and TCS.

The Sensex is currently trading at 72,080.89 points, marking an increase of 349.47 points on Tuesday, primarily driven by gains in heavyweight IT stocks. Wipro has seen a rise of three per cent, while TCS also recorded a three per cent increase.

According to V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, the near-term market trend suggests exhaustion, with no clear positive triggers on the horizon to sustain new highs immediately. The upcoming RBI meeting on February 8 is an important event, but it is unlikely to bring positive triggers such as a rate cut.

Despite challenges in the global market, including a rise in the 10-year bond yield to 4.13 per cent and the dollar index to 104.5, there is optimism regarding the US economy's performance. The prospect of a sharp global slowdown triggered by a potential US recession seems improbable. Additionally, declining inflation in the US could support global equity markets. Investors are advised to monitor emerging trends while remaining invested in this bullish market.

Deepak Jasani, Head of Retail Research at HDFC Securities, noted that Asian stocks experienced declines due to strong US economic data, which dampened expectations for an immediate Federal Reserve pivot to monetary easing. The Nifty closed lower in a volatile session on February 5, with a decline of 0.38 per cent or 82.1 points, reaching 21771.7. The Nifty's decline on February 5 formed a near bearish engulfing pattern following the shooting star pattern observed on February 4. In the near term, the Nifty could encounter resistance in the 21964-22126 band, while 21522 could act as a support level. A breach below 21137 may result in an accelerated downward movement in the Nifty.

(With Agency Inputs)