IT stock rally as large caps remains favorite spot for investors

Indian Markets:

• Nifty 50 Movement: Indices closed above the 18,000 level after hitting the day’s low of 18,000.65 in late trade.
• Market started on a positive note and remained in the green for the most part of the session amid supportive global cues, however, last-hour selling in the blue-chip stocks erased most of the day’s gains. 
• After robust jobs data, strong retail sales numbers in the US showed proof of resilience in the US economy amidst concerns over elevated inflation numbers.
• Among sectors, the Nifty information technology index rose over a percent and the pharma index 0.5 percent. Selling was seen in the auto and banking names.

Global Markets:

• Shares in Europe and Asia advanced on Thursday as investors digested Japan’s record trade deficit of $26 bn. Investors also digested a stronger than expected US retail sales report from Wall Street.
• US stocks ended higher on Wednesday after stronger than expected retail sales data offered evidence of resilience is the US economy.
• US retail sales increased the most in near two years in Jan after 2 straight months of decline.
• Production at US factories rebounded in January. Manufacturing output increased 1 percent last month. 

Stocks in Spotlight:

• Tech Mahindra and Tata Consultancy Services have been the top gainers among the large-caps, while stock-specific developments propelled the share prices of smaller companies Nucleus Software and Tanla Platforms higher. A set of in-line quarterly results, moderate deal wins, and ‘buy on dips’ seem to be the key positives for IT stocks.
• Bharat Electronics signed an MoU with Israel Aerospace Industries (IAI) for the domestic manufacture and supply of its LORA weapon system for the Indian military. The state-of-the-art strategic weapon system weapon will be manufactured by BEL, as the prime contractor, based on the workshare arrangement with IAI.
• Interglobe Aviation declined over 4 percent after 1.7 crore shares, worth Rs 3,221 crore, changed hands in a block deal window on February 16. This indicates a 4.4 percent stake in the company. While the buyers and sellers were not known immediately, it was earlier reported that Shobha Gangwal, the wife of IndiGo co-promoter Rakesh Gangwal, would be offloading some stake. According to CNBC-TV18, the floor price for the block deal was set at Rs 1,875 a share and Goldman Sachs was appointed the broker.

News from the IPO world?

• Akme Fintrade files IPO papers with SEBI
• Fortis Healthcare arm SRL Diagnostics kickstarts IPO prep to raise Rs. 2000 crore
• Sealmatic India’s IPO issue opens on Friday, 17th Feb 23.

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Sectoral Performance

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