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On February 24, 2024, the stock market presented mixed performances with specific sectors showing notable movements. The Nifty50 index, after testing a record high, concluded the session with a slight decline due to profit booking in IT and select banking shares. However, the broader market landscape saw impressive gains in specific segments.
The benchmark indices, the Nifty50, and the BSE Sensex, experienced a volatile trading session, ending marginally lower. Despite the Nifty50 setting a new intra-day record, late selling in IT and select banking shares trimmed early gains.
The Sensex slightly dipped by 15.44 points, closing at 73,142.80. The Nifty, on the other hand, saw a minor drop of 4.75 points to settle at 22,212.70. This movement underlines the cautious approach of investors amid fluctuating market conditions.
Significantly, Reliance Industries Limited (RIL) saw a 1% increase, reaching a new 52-week high.
Reliance Jio Financial Services witnessed a remarkable surge of 14.5%, hitting the year's high and elevating its market capitalization to over Rs. 2.20 lakh crore. This performance indicates strong investor confidence in these sectors, driving the market's momentum in specific areas despite the overall subdued sentiment.
The technology sector, particularly stocks related to artificial intelligence (AI), received a significant boost following Nvidia's hitting $2 trillion market cap, renewing enthusiasm around AI technologies. This sentiment was seen in the US stock market, where main indexes opened higher, continuing the AI-led rally. Nvidia's performance, in particular, has been a key driver, propelling the company to become the world's fourth-largest by market capitalization.
Moreover, the US market's positive outlook contributed to the global market sentiment, with oil prices adjusting due to the Federal Reserve's stance on interest rate cuts. The Fed indicated a delay in rate cuts, impacting the oil sector's weekly performance negatively.
Given the current market dynamics, traders and investors should remain vigilant, especially in sectors showing volatility. The higher high and higher low series formation in the Nifty50 suggests a potential breakout or breakdown, with a decisive move above 22,250 points likely indicating a significant rally. The demand zone is around 22,100 to 22,130 points closely, as a slide below this range could push the Nifty towards the 22,000 level.
Additionally, global market cues, particularly from the US, should not be ignored. The AI-driven rally highlights the importance of staying updated on technological advancements and their potential impact on market trends.
The acquisition deal between Kotak Mahindra Bank and Zurich for a 70% stake in Kotak General highlights the strategic moves within the financial sector, potentially influencing market sentiment towards banking stocks.
In the wake of Nvidia Corporation's results, Indian artificial intelligence (AI) and semiconductor-related stocks experienced significant gains on Friday. Nvidia's shares soared by 16%, reaching an all-time high after the company announced its fiscal fourth-quarter earnings, highlighting a 265% year-on-year revenue increase and a net income rise of 769%. This remarkable performance, driven by the demand for Nvidia's AI chips, not only added nearly $277 billion to Nvidia's market cap but also positively impacted Indian tech stocks.
Key Indian companies in the semiconductor sector, such as SPEL Semiconductor Ltd and ASM Technologies Ltd, saw their shares hit the upper circuit, with SPEL Semiconductor reaching a 52-week high and securing a 57% gain in 2024. ASM Technologies also witnessed a substantial rise, with its stock price increasing by 94% this year, reflecting more than 450% growth over the past year.
Other top Indian AI firms like Happiest Minds Technologies, Kellton Tech Solutions, and L&T Technology Services enjoyed upwards of 3% increases in their share prices. Other notable AI stocks, including Tata Elxsi, Persistent Systems, Oracle Financial Services Software, Saksoft, and Mphasis, reported gains exceeding 1% in the trading session, demonstrating the broad impact of Nvidia's success on the Indian market.
The stock market on February 24, 2024, presented a mixed picture with fluctuations across various sectors. Investors witnessed gains in specific stocks and sectors, despite the overall market closing slightly lower. The developments in the tech sector, along with strategic corporate actions and global economic indicators, will continue to guide market trends.
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