Did Sensex and Nifty Close Higher Thanks to IT Stocks?
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Synopsis
On September 9, Mumbai's benchmark indices, fueled by a rally in IT stocks, particularly Infosys, closed higher. This article delves into the significant market movements, key players, and future expectations amidst changing economic conditions.
Key Takeaways
- Sensex increased by 314 points to 81,101.
- Nifty rose by 95 points to 24,869.
- Infosys was the top gainer, jumping 5 percent.
- IT stocks saw a significant rally.
- The rupee appreciated against the dollar.
Mumbai, Sep 9 (NationPress) The benchmark indices concluded the day with noticeable gains on Tuesday, primarily fueled by a robust surge in IT stocks. Infosys took the lead following the announcement that its board will assess a share buyback on September 11. Throughout the trading session, the Sensex remained in positive territory, closing at 81,101, which is an increase of 314 points or 0.4 percent.
The Nifty mirrored this trend, climbing 95 points to finish at 24,869. Technical analysts observed that the Nifty has successfully reclaimed its 100-day moving average at 24,820, indicating a short-term bullish outlook.
“Momentum indicators are showing positive signs, with the RSI surpassing 50, hinting at upward movement. Nevertheless, the index is encountering significant resistance near 25,000, and a breakout above this threshold will be crucial for continued gains,” remarked an analyst.
Infosys stood out as the top performer among the Sensex 30 stocks, soaring 5 percent to reach Rs 1,504, contributing 217 points to the index.
Other significant gainers included Adani Ports, Tech Mahindra, HCL Technologies, TCS, and Bajaj Finserv, all of which advanced between 1 and 3 percent.
Conversely, stocks like Trent, Eternal, and UltraTech Cement experienced declines of 1 to 2 percent.
In the broader market, the Nifty MidCap and SmallCap indices also saw increases of 0.3 percent.
Sector-wise, IT stocks were the standout performers, with the Nifty IT index shooting up by 2.7 percent.
Meanwhile, India's volatility index, the VIX, decreased by 1.8 percent, indicating enhanced investor sentiment.
On the currency front, the rupee appreciated by 0.18 percent to close at 88.14 against the US dollar.
Market analysts suggested that the currency benefited from a weaker dollar amidst anticipation of a US Federal Reserve rate cut.
“The rupee is expected to trade within the range of 87.75-88.50 in the near term, with any dip below 87.75 potentially allowing for further appreciation,” stated Jateen Trivedi of LKP Securities.
Additionally, gold prices were on the rise, with an increase of 0.50 percent at $3654 on COMEX and 0.69 percent at Rs 1,09,250 on MCX, as traders adjusted to the highly anticipated Fed rate cut following disappointing jobs and payroll data, Trivedi added.
Point of View
It is evident that the resilience of the IT sector, particularly with Infosys at the forefront, has played a pivotal role in driving the indices upward. Market analysts suggest that while the outlook appears promising, vigilance is necessary as resistance levels persist. This reflects a broader sentiment of cautious optimism in the investment landscape.
NationPress
09/09/2025
Frequently Asked Questions
What drove the recent gains in the Sensex and Nifty?
The gains were primarily driven by a rally in IT stocks, with Infosys leading after announcing a potential share buyback.
What is the significance of the Nifty reclaiming its 100-day moving average?
Reclaiming the 100-day moving average is a bullish sign, indicating potential upward momentum in the market.
How did the rupee perform against the US dollar?
The rupee appreciated by 0.18 percent, closing at 88.14 against the US dollar, benefiting from a weaker dollar.
