After opening the day on a positive note, Indian share markets continued the momentum as the session progressed and ended on firm footing.

Benchmarks Sensex and Nifty50 indices rose to record highs on Friday lifted by a solid rally in information technology (IT) stocks.

At the closing bell, the BSE Sensex stood higher by 622 points (up 0.8%).

Meanwhile, the NSE Nifty closed higher by 186 points (up 0.8%).

TCS, Wipro and Infosys were among the top gainers today.

Maruti Suzuki, BPCL, and Coal India on the other hand, were among the top losers today.

The GIFT Nifty was trading at 24,535 up by 130 points, at the time of writing.

The BSE MidCap index ended and the BSE SmallCap index ended 0.2% lower.

Sectoral indices are trading mixed with stocks in the power sector, banking sector, and IT sector witnessing the most buying. Meanwhile, stocks in the realty sector and power sector witnessed selling pressure.

Shares of Axis Bank, Trent, and REC hit their respective 52-week highs today.

The rupee is trading at 83.52 against the US$.

Gold prices for the latest contract on MCX are trading 0.3% lower at Rs 73,120 per 10 grams.

Meanwhile, silver prices were trading 1.2% lower at Rs 93,025 per 1 kg.

Here are three reasons why Indian Markets are rising today

#1 IT Stocks Rally

Indian benchmark equities hit a fresh all-time high on Friday, driven by IT stocks after heavyweight Tata Consultancy Services (TCS) surpassed revenue estimates for the June quarter.

#2 Sectoral Gains

On the sectoral front, barring the Nifty Realty index, all sectoral indices traded in the green in early trade. Nifty IT rose 1.6%, while Nifty Media surged 1.3%. In the broader market, Nifty Midcap 100 gained 0.23%, and Nifty Smallcap 100 surged 0.6%.

#3 Global Markets

MSCI's broadest index of Asia-Pacific shares outside Japan was little changed, though was on track for a 1.6% increase for the week, helped by growing bets of imminent US rate cuts.S&P 500 futures were little changed, while Nasdaq futures fell 0.02% and EUROSTOXX 50 futures were flat.
 

RCF Zooms 10%. Here's Why

In news from the fertilizer sector, shares of Rashtriya Chemicals and Fertilizers Ltd (RCFL) surged around 10% on 12 July to hit a fresh record high of Rs 244.9 on the National Stock Exchange (NSE) after the company announced a significant development.

The Board of Directors of the company approved a purchase order worth Rs 5.2 bn for Topsoe A/s to procure a Basic Engineering Design Package (BEDP) and supply proprietary equipment and catalysts.

This move aims to revamp the Ammonia Plant at RCF Thai, focusing on reducing specific energy consumption. The announcement, made following SEBI regulations, has generated positive investor sentiment, driving up the stock price.

The order needs to be executed within 36 months or 3 years.

RCF is a public-sector fertilizer and chemical manufacturer. Established in 1978 following the reorganization of the former Fertiliser Corporation of India Ltd. into five separate entities, it operates two main units including one in Trombay, Mumbai, and another in Thal, Raigad district, located approximately 100 km from Mumbai.

In the last year, the multibagger PSU stock has zoomed over 102%, doubling investors' money.

Cyient to Expand Semiconductor Business

Moving on to news from the IT sector, shares of Cyient surged over 7% to Rs 1,905 in the afternoon on 12 July after the company announced a strategic expansion of its Semiconductor business with the establishment of a fully owned subsidiary.

Cyient is a Hyderabad-based multinational technology company focused on engineering, manufacturing, data analytics, networks, and operations.

The company's expertise in semiconductor electronics, through Cyient DET and Cyient DLM, has led to the creation of a new subsidiary focused on ASIC design and chip sales using a fabless model for analog mixed-signal chips. This move aims to add value for stakeholders with continued support.

With a portfolio of over 600 IPs, strong customer relationships, and global capabilities, Cyient is positioned for significant growth.

The new subsidiary will enhance Cyient's industry position by delivering specialized ASIC design and chip sales, adapting to market demands, and meeting the technology and capital needs of the industry.

Cyient is a mid-sized IT company providing a comprehensive range of software services to various sectors such as aerospace, defense, healthcare, and energy.

Formerly known as Infotech Enterprises, Cyient has come a long way from humble beginnings as a GIS data conversion vendor (the process of translating spatial data from one format or type to another within a Geographic Information System) to a formidable engineering player.
 

Why IT Stocks are Rising

Moving on, the Nifty IT index surged nearly 5% on 12 July driven by strong performances from TCS, Infosys, and Wipro.

This wave of optimism in the IT sector followed TCS's announcement of its Q1 FY25 earnings on 10 July after market hours, where the company's consolidated net profit and revenue exceeded analysts' expectations.

Shares of HCLTech, Infosys, LTIMindtree, Wipro, and TCS were up between 3-7%, making them the top gainers in the Nifty 50 index.

Midcap IT stocks also experienced a significant surge. Shares of Cyient, Oracle, Persistent Systems, Mphasis, Zensar Tech, Coforge, Sonata Software, and KPIT Tech climbed between 4-11%.

IT stocks drove the Nifty and Sensex to record highs on 12 July 2024.

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