Sensex Jumps Over 350 Points, Tops 40,000 For First Time In Over 5 Weeks

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Stock Market Updates: The Nifty IT index was the best performing sectoral gauge on the NSE

Domestic stock markets extended gains to a sixth straight day on Thursday, with the benchmark S&P BSE Sensex index crossing the 40,000 level for the first time since August 31, as global equities rose on optimism about further fiscal support to tackle COVID-19. The Sensex surged 589.93 points – or 1.48 per cent – to 40,468.88 at the strongest level recorded during the session, and the broader NSE Nifty 50 index climbed to as high as 11,895.70, up 156.85 points – or 1.34 per cent – from its previous close. Gains across most sectors – led by IT and financial shares – pushed the markets higher. 

At 11:52 am, the Sensex traded 540.19 points – or 1.35 per cent – higher at 40,419.14, while the Nifty was up 144.50 points – or 1.23 per cent – at 11,883.35.

Wipro, TCS, Infosys, HCL Tech and Tech Mahindra, trading between 4.32 per cent and 7.47 per cent higher, were the top gainers in the Nifty basket of 50 shares. On the other hand, ONGC, GAIL, Eicher Motors and Reliance Industries – down 1.37-2.41 per cent each – were the worst hit among 20 Nifty laggards.

TCS and Wipro shares registered new record highs, after the companies announced share buyback plans. 

The Nifty IT index – which tracks 10 IT stocks including TCS, Infosys and Wipro – jumped as much as 5.02 per cent, and was the best performing sectoral gauge on the NSE. 

Tata Consultancy Services shares jumped as much as 5.25 per cent to a record Rs 2,881.15 on the BSE, a day after the country’s largest IT company announced a share buyback worth up to Rs 16,000 crore, and reported a 6.66 per cent sequential rise in net profit in the July-September period, though missing analysts’ estimates. 

Wipro shares jumped 6.28 per cent to a record high of Rs 356.30 apiece on the BSE, after the IT company said it will consider a stock repurchase.

“The language from TCS was strong and they were quite vocal that things are pretty much good… that is driving IT stocks higher today,” said Saurabh Jain, assistant vice president at SMC Global Securities. IT companies will do very well as they are able to clinch deals in many sectors, he said.

Equities elsewhere in Asia rose to a one-month high on Thursday, as renewed hopes for more US stimulus helped restore investor confidence. MSCI’s broadest index of Asia-Pacific shares outside Japan rose to a level not seen since early September.

US President Donald Trump sent out a flurry of tweets on Wednesday urging Congress to pass piece-meal aid packages for targeted industries, small business and consumers, backpedaling from his earlier stance to unilaterally end negotiations. Analysts awaited US employment data due later in the day, which will likely show the recovery in the world’s largest economy losing steam.

New polls show Democratic candidate Joe Biden in a firm lead against Mr Trump ahead of the November elections.

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