IT sets Street afire: indices at life highs

HDFC Bank, Reliance Industries support Monday's market rally

- Ram Sahgal

Technology stocks were the star performers on the Street on Monday, lifting the Nifty and Sensex indices to record highs, along with support from blue chips Reliance Industries Ltd and HDFC Bank Ltd. Meanwhile, robust returns from information technology (IT) stocks in the year so far are beginning to raise questions on whether the tech engine still has enough steam left.

The National Stock Exchange's Nifty hit an intraday high of 21,115.55 while BSE's Sensex surged to a life high of 73,402.16, as earnings and management commentary from technology leaders last week fuelled buying in these stocks.

Analysts continue to be bullish on returns from tech stocks, but caution that returns would be in line with those of the benchmark index, which they have outperformed over a year. The Nifty IT index was Monday's top performer, rising 1.86% to 37,201.95.