The Nifty index hit a new high of 21,848, on Friday January 12th, helping nifty rise 0.93 % during the trade. Together, they gained more than 740 points, or 72,463.99, on the S&P BSE Sensex following a brief break.

While the Indian market produced a powerful comeback in today’s trading session following a two-day period of weakness, the positive nifty performance was mostly led by five key stocks – HDFC Bank, Bajaj Finance, Infosys, Axis Bank and Bharti Airtel.

On Friday, January 12, market investors experienced renewed optimism following in-line Q3 results from IT giants and TCS. The lack of negative news proved to be extremely beneficial for investors, as they flocked to buy technology stocks, causing the benchmark indices to reach all-time highs.

Heavyweight companies, like Reliance Industries (RIL) and HDFC Bank, also encouraged the nifty numbers’ rise. Investors are waiting for HDFC Bank’s results, which are expected on January 16, to determine how banking stocks will perform.

5 Stocks leading the way for Nifty

Together, these five stocks added a significant 100 points, or 70.79%, to the Nifty 50’s overall gain today.

The banking sector, led by HDFC Bank, which saw a noteworthy 1.07% increase and soared to ₹1,690 per share in today’s session, was the main driver of the jump. This heavyweight made a significant 30.86 point contribution to the index’s overall advance.

After the company’s Q3FY24 update was released, shares of Bajaj Finance saw a notable increase of 4.34%, closing at ₹7,705 per. The company’s assets under management (AUM) reached ₹3,11,000 crore during the quarter, surpassing the ₹3 lakh crore threshold for the first time.

During the day, Axis Bank’s shares also saw a significant surge, rising by a notable 2.26% to ₹1,123 per share. The nifty stock saw its biggest intraday increase since December 1, 2023, which is indicative of the banking industry’s good momentum.

Infosys’s share price surged strongly in the IT sector Thursday, rising 1.52% to ₹1,512 per share. The global brokerage firm J.P. Morgan increased its target price for the stock from ₹1,400 to ₹1,800 and improved its rating from Neutral to Overweight, which sparked this rise. This updated target price shows a 19% gain.

During the midday session, the shares of telecom behemoth Bharti Airtel hit a fresh all-time high of ₹1,058.8 apiece. After that, it closed the deal at ₹1,047.90, gaining 1.23%.

The corporation added 3.52 lakh new customers in October 2023, according to the monthly subscriber data that TRAI released today. This increase came after that. Airtel now has 37.81 crore wireless subscribers as a result of this increase.

Wipro and Tech Mahindra, among others, also had increases of up to 4%. HCL Technologies saw a 3% increase. Notable movers included Tata Steel, ICICI Bank, and SBI. On the flip side, Mahindra & Mahindra, Asain Paints and Titan fell roughly 1 per cent apiece.

In the overall nifty stock market, the BSE MidCap index increased by 0.3%, and the SmallCap index increased by 0.5%.

Factors that helped Nifty Soar

The confidence of investors has been bolstered by better-than-expected profits from frontline IT giants, leading to a spike in software equities, TCS, and Infosys. Indian IT majors posted neutral to improved profitability in their Q3 earnings despite a seasonally bad period made worse by global macroeconomic challenges, according to Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.

In contrast, TCS outperformed Infosys in a number of indicators, and Infosys modified its outlook for the future. We are still bullish about the industry going forward in light of the findings,” the analyst continued.

Analysts predict TCS will continue to win transactions related to cost optimization, vendor consolidation, and integrated operations even in an uncertain macro environment.

In other Asian stocks, the Nikkei jumped by an additional 1% this morning, reaching a level close to 35,500, which is a record high since 1990. Among others, the Shanghai and Hang Seng indexes increased by up to 0.5 percent, while the Kospi, Taiwan, and Straits Times indexes decreased by the same amount.

Indian markets continued to rise during the night, despite the US markets posting poor performance due to higher-than-expected US CPI inflation. Even though the most recent inflation statistics dashed hopes of an early US rate cut, the impact is not felt. The CME Fedwatch tool indicates that traders still expect a cut as early as March.