The Information Technology (IT) sector holds significant weightage in the Nifty50 index, standing at 13.76%, making it the second-largest contributor after financials.
On December 10, 2024, the Nifty IT index surged by 0.70%, reaching a new all-time high of 45,377.75, surpassing its previous peak of 45,027.95 recorded on December 5, 2024. Infosys and Wipro emerged as major contributors to this rally, while Tech Mahindra acted as a drag. This gain placed the IT index among the top three performing sectors of the day, with most constituents trading in the green.
Year-to-date (YTD), the Nifty IT index has posted an impressive gain of 27.22%, significantly outperforming the broader Nifty50, which rose by 13.06% as of December 10, 2024.
December has historically been a rewarding month for the Nifty IT index, averaging a 3.90% return since 2004. It ranks as the second-best month for the sector after July. Since 2015, the index has ended in the red in December only twice, in 2018 and 2022. However, in years like 2020, 2021, and 2023, the IT index delivered robust double-digit gains, further cementing its reputation for strong year-end performance.
The Nifty IT index’s new peak reflects the sector’s resilience and strong market positioning. Its historical trend of December gains and robust YTD performance underscores its importance as a key driver in the Nifty50 index. While global economic factors continue to shape its trajectory, December 2024 is shaping up to be another remarkable period for IT stocks.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
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