stock talk

In this notable uptrend, Infosys recorded an impressive 7.6% increase, Sonata Software (NS:SOFT) rose by 7%, Datamatics saw a 6% uptick, Coforge (NS:COFO) experienced a 5% rise, Tech Mahindra (NS:TEML) and TCS each gained 4%, while Wipro (NS:WIPR) and Mphasis (NS:MBFL) both registered a 4% increase.

One of the primary challenges affecting this rally is emerging from the US market, which exhibits signs of weakening.

As of the latest update, the BSE Sensex is trading at 71,444 points, down by 580 points. Notable declines are observed in SBI, which is down by more than 2%, while ICICI Bank and Axis Bank are both experiencing a 1% decrease.

RailTel soared by 16.68 percent, hitting a 52-week high of Rs 194.10, eventually settling 14.70 percent higher at Rs 190.80. The company recently secured an order worth Rs 27.91 crore from Kerala State Information Technology Infrastructure for a fiber optic network.

After initially being in the red during morning trade, the Sensex rebounded, gaining 173 points and reaching 72,410 points. Nestle emerged as the top gainer, experiencing an increase of more than 2% in trade. ITC also contributed to the positive trend with a gain of more than 1%.

Markets contrary to expectation gained on three of the four sessions and had a small dip on the very last day of the year. Nothing to be read into but purely coincidental.

The combined stock value of the Big Five tech companies—Apple, Microsoft, Alphabet, Amazon, and Meta—witnessed a monumental increase in 2023, collectively adding $3.9 trillion to their stock value.

Notably, activity was focused on PSU (Public Sector Undertaking) stocks, with nine out of the top 15 traded stocks on the NSE falling into this category.

Historically, small and midcap stocks enter a period of outperformance once they reverse from deep phases of underperformance, and perform poorly when they have high trailing outperformance.

The research report emphasizes a relative preference for large-cap stocks over mid-caps and small-caps on a top-down basis. While Paharia remains optimistic about the medium to long-term prospects of Indian equity markets driven by strong economic growth, he urges caution due to the recent sharp run-up in markets.