Nifty IT Tops Sectoral Gains
Nifty IT was the best-performing sector on Monday. It closed 3.28% higher, extending its recent rally as investors continued to favour Indian IT services firms. The move came even as Asian semiconductor and chipmaking stocks remained under pressure over concerns about elevated artificial intelligence spending. In contrast, investors viewed Indian IT services firms as relatively defensive businesses with stable earnings visibility. That prompted fresh buying in the sector.
The rally also reflected improving investor confidence after the June quarter earnings season. Better-than-expected results from several companies, combined with attractive valuations after a prolonged correction, encouraged a rotation back into technology stocks.
Out of the 10 constituents in the index, 9 ended the session higher, while only 1 stock closed in the red.
LTM Leads the IT Index
Among individual stocks, LTIMindtree surged 7.52%, making it the biggest gainer in the index. The stock climbed to an intraday high of ₹4,720.40 before settling at ₹4,690. The rally followed growing optimism around the company's artificial intelligence business.
LTIMindtree's AI portfolio, spanning Business AI, Creative AI, and Industrial AI, has reached an annualised quarterly run rate of nearly $150 million. This now contributes around 12% of its revenue. The company's BlueVerse platform and increasing adoption of outcome-based AI projects have also strengthened investor confidence.
TCS and Infosys Gain Up to 4.5%
TCS, the second-largest constituent of the Nifty IT index by weightage, also gained over 4.5%.
Infosys, the largest constituent of the Nifty IT index by weightage, rose around 4.5%. The stock touched an intraday high of ₹1,180 against its previous close of ₹1,130.
Nifty Cement Ends Second
Nifty Cement ended the session with a gain of 2.72%, making it the second-best-performing sector of the day. Fourteen of the 16 constituent stocks closed higher, while only two ended in negative territory.
Low Crude Oil Prices Supported Sentiments
The sector received support from easing crude oil prices. Energy costs, including petcoke and coal, form a significant part of cement manufacturing expenses.
Grasim Hits All-Time High
Grasim Industries, the third-largest constituent in the index by weightage, rose 5.13% and emerged as the top performer in the index. The stock broke out of a consolidation phase and made a fresh all-time high of ₹3,260.
Shree Cement Volumes Rise 1.35x
Shree Cement gained 3.67% and was the second-best performer in the sector. The stock touched an intraday high of ₹27,000. Trading activity also remained strong, with volumes rising to 33.49 lakh shares against the 30-day average of 24.81 lakh shares.
Revenue Increases 18% YoY
The country’s third-largest cement group by capacity reported a healthy performance in the June quarter. Revenue from operations increased 18% YoY. Its cement sales volume rose 17% to 10.23 million tonnes.
Ramco Cements also remained firm and closed 2.94% higher, making it the third-largest gainer in the cement index.
Nifty Private Bank Gains +1.90%
The third-best-performing sector on Monday was Nifty Private Bank. The index gained 1.90% to close at 28,045.15.
Federal Bank Gains Over 3.5%
Federal Bank share price led the rally, rising 3.58% during the session. As a result, the stock closed at its all-time high of ₹371.70.
Axis Bank share price also advanced and emerged as the second-biggest gainer in the index. The stock rose 3.46%.
ICICI Bank, which holds a 22.19% weightage in the index, also contributed to the rally, gaining 1.71%.
