Information Technology Takes The Lead

The National Association of Software and Service Companies (NASSCOM) recently said that the top five Indian IT companies are planning to add over 96,000 employees in 2021- 22 and the IT sector will persist to be a net hirer of skilled talent

Despite witnessing pressure in the first half of the fortnight, frontline indices Sensex and Nifty have convalesced to close near their all-time highs with gains of 0.71 per cent and 0.31 per cent, respectively. Reliance Industries Ltd., which constitutes a massive weightage of both the indices, lost ground throughout the week and slipped further post the Annual General Meeting (AGM) held on June 24, 2021. The Mid-Cap and Small-Cap indices underperformed the broader market benchmarks, declining by 0.97 per cent and 0.32 per cent, respectively. The IT index was the star of the show, soaring by a colossal 4.26 per cent.

The National Association of Software and Service Companies (NASSCOM) recently said that the top five Indian IT companies are planning to add over 96,000 employees in 2021-22 and the IT sector will persist to be a net hirer of skilled talent. The FMCG index ended on a positive note, gaining 1.24 per cent. The sector is expected to drive growth as the country revives from the second phase of the lockdown coupled with expectations of a healthy monsoon. The Auto index continues to bear the brunt of the second wave, declining by 0.51 per cent.

Reliance Industries Ltd, which constitutes a massive weightage of domestic benchmark indices, lost ground throughout the week and slipped further post the Annual General Meeting (AGM) held on June 24, 2021.

Rising fuel prices are also playing spoilsport, impairing buyer sentiment. The metal index has underperformed by 3.69 per cent during the fortnight as Chinese authorities made a pledge to release government reserves to alleviate shortage concerns as well as mounting prices. In the first week of June 2021, the BSE Power index hit a 10-year high of 3,008 level. These levels were last observed in January 2011. The index failed to hold the fort and was the biggest loser among all the sectors, tumbling by 5.56 per cent. Adani Transmission, Adani Green and Adani Power saw heavy selling pressure on June 14.

This was in the wake of a media report which suggested that NSDL had frozen the accounts of three foreign funds having majority holding in Adani Group’s stocks. This trajectory persisted for a few days despite clarification from the Adani Group, thus dragging the index. Healthcare and realty indices also dipped by 1.58 per cent and 1.49 per cent, respectively, over the last two weeks. Trading data shows that FIIs were net buyers to the tune of Rs 1,468.19 crore while DIIs were net sellers to the tune of Rs 47.25 crore during the fortnight.