IT Stocks Power Market Rally; Sensex & Nifty Hit 2-Week High (9 September)

For investors tracking the Indian stock market, the key question on Tuesday was: "What powered the Sensex and Nifty to a two-week high?" The answer was a powerful, sentiment-boosting rally in the Information Technology (IT) sector, triggered by a major announcement from industry behemoth Infosys. This guide breaks down the day's market action, the news that drove the IT surge, and what it signals for investors.

Table of Contents

1. How Did the Stock Market Perform Today?
2. What Was the Main Reason for the Market's Rally?
3. Which Stocks and Sectors Were the Top Performers?
4. What Other Key News Influenced the Market?
5. What Cues Are Coming from Global Markets?
6. Frequently Asked Questions (FAQs)

How Did the Stock Market Perform Today?

The Indian market extended its gains for a second straight day, closing at a two-week high with the IT sector firmly in the lead.

• The S&P BSE Sensex closed with a solid gain of 314.02 points (0.39%), settling at 81,101.32.

• The NSE Nifty 50 rose by 95.45 points (0.39%) to end the session at 24,868.60.

The mood on Dalal Street was upbeat, supported by both strong domestic triggers and positive global cues.

What Was the Main Reason for the Market's Rally?

The day's rally was overwhelmingly driven by a powerful resurgence in the IT sector, sparked by a single, significant piece of news.

The Infosys Buyback Buzz: The main event was the announcement from Infosys that its board would consider a proposal for a share buyback at its meeting on September 11. This news was seen as a strong signal of management's confidence that the stock is undervalued and served as a major catalyst. The news triggered a massive 5% rally in Infosys's stock, which single-handedly contributed over 200 points to the Sensex's gain and lifted the entire sector.

Which Stocks and Sectors Were the Top Performers?

Tuesday belonged to the IT stocks, which dominated the gainers' list, while some profit-booking was seen in recent high-flyers like auto stocks.

Sectoral Performance Highlights:

• Top Gainer: The Nifty IT index was the standout performer, surging by 2.8%. This powerful rally helped the index snap a five-day losing streak.

• Other Gainers: Defensive sectors like Nifty Pharma and Nifty FMCG also provided support, each gaining around 0.5%.

• Top Losers: The Nifty Oil & Gas and Nifty Realty indices ended the day in the red.

Top Gaining and Losing Stocks on Nifty 50:

Here's the top-gaining stocks on Nifty 50 Today:

Here are the top losing stocks on Nifty 50 Today:

What Other Key News Influenced the Market?

While the Infosys news stole the spotlight, other developments indicated broad market strength.

• 52-Week Highs: Over 130 stocks on the BSE touched their 52-week highs, showing that the positive sentiment was not confined to the IT sector. This list included prominent names from the auto and industrial sectors like Eicher Motors, Maruti Suzuki, M&M, Cummins India, and Bosch.

• Vadilal Appoints New CEO: In other corporate news, ice cream maker Vadilal Industries announced the appointment of Mr. Himanshu Kanwar as its new Chief Executive Officer.

What Cues Are Coming from Global Markets?

Global markets provided a favourable backdrop for Indian equities, with most Asian indices trading higher. This optimism was largely driven by growing hopes of an interest rate cut by the U.S. Federal Reserve following soft economic data.

Looking ahead, investor focus is now shifting to key U.S. inflation data, with the Producer Price Index (PPI) and the crucial Consumer Price Index (CPI) reports due later this week. These figures will be closely watched for any clues on the Fed's future policy moves.

Frequently Asked Questions (FAQs)

Q1: Why did the IT sector and Infosys rally so sharply today?
A1: The Nifty IT index surged nearly 3%, driven almost entirely by a 5% jump in Infosys shares. This rally was triggered by the company's announcement that its board will meet on September 11 to consider a share buyback proposal, a move seen as highly positive by investors.

Q2: What was the main driver for the overall market's gains?
A2: The market's upward momentum was overwhelmingly powered by the strong performance of the heavyweight IT sector. Positive global cues, stemming from hopes of a U.S. Fed rate cut, also played a supportive role.

Q3: Which stocks were the top performers today?
A3: IT majors were the top performers, with Infosys leading the pack. Other significant gainers included Tech Mahindra, Adani Ports, HCL Technologies, and Wipro.

Q4: What is the significance of a share buyback?
A4: A share buyback is when a company repurchases its own stock. It is typically seen as a positive sign because it indicates that the management believes the company's shares are undervalued. It is also a tax-efficient way to return surplus cash to shareholders.

Q5: What should investors watch for in the global markets now?
A5: The most important events to watch are the upcoming U.S. inflation reports (PPI and CPI). These data points will be critical in shaping expectations for a potential interest rate cut by the U.S. Federal Reserve, which could heavily influence global market trends.