India’s Nifty 50 crosses 22,000 to hit record high, Wipro leads tech rally

Investing.com– India’s Nifty 50 index hit record highs on Monday, breaching the 22,000 level as index heavyweight Wipro (NYSE:) led a rally in technology stocks on stronger-than-expected earnings.

The rose 0.6% to 22,021 points, while the index rose 0.7% to a record high of 73,095.56 points by 10:28 AM IST (04:58 GMT).

Technology stocks were the biggest boost to both indexes, led chiefly by Wipro Ltd (NS:) after the firm clocked stronger-than-expected earnings in the December quarter. Wipro jumped about 6% and was the top performer on the Nifty.

Other tech majors also advanced, with HCL Technologies Ltd (NS:), Tech Mahindra Ltd (NS:), Tata Consultancy Services Ltd. (NS:) and Infosys Ltd (NS:) rising between 0.9% and 2.5%. Infosys and TCS had clocked better-than-feared earnings last week, while HCL’s quarterly profit also beat expectations.

Tech Mahindra is set to report its quarterly earnings on January 24.

Strong tech earnings set a positive tone for the December-quarter earnings season, while sentiment towards India was also aided by a softer-than-expected reading on on Friday.

Strength in tech stocks helped the Nifty extend a stellar rally from 2023, as investors piled into the Indian market on growing optimism over strong economic growth in the country. The Nifty grew 20% in 2023 and was among the best-performing global stock indexes.

A bulk of the Nifty’s recent outperformance was also linked chiefly to India’s economic growth rate, which is the fastest among major global economies. grew 7% in the third quarter of 2023, with annual GDP also forecast to grow by a similar margin.

Private consumption and a strong services sector have been the two key drivers of the Indian economy in recent years- a trend that has also attracted a heavy dose of foreign buying into local markets.

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