The S&P BSE Sensex and NSE Nifty 50 indexes logged in sixth straight session of gains led by information technology heavyweights like TCS, Wipro, Infosys and HCL Technologies as the IT index surged to record high after management of the country’s largest software services company said the space is geared up for a “multi-year technology transformation cycle “. “In the current phase, enterprises are building a cloud-based foundation that will serve as a resilient, secure and scalable digital core,” said Rajesh Gopinathan, CEO and managing director of TCS. The Sensex rose as much as 590 points to close above 40,000-mark and Nifty reclaimed important psychological level of 11,800.
The Sensex ended 304 points to close at 40,183 and Nifty 50 index climbed 96 points to close at 11,835.
“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.
Nine of 11 sector gauges compiled by the National Stock Exchange ended higher led by the Nifty IT index’s over 3 per cent gain. Banking, financial services, pharma and private banking indexes also rose between 1-2.5 per cent each.
On the other hand, Nifty Media index was top loser, down 0.5 per cent.
Mid- and small-cap shares underperformed their larger peers as Nifty Midcap 100 index rose 0.1 per cent and NIfty Smallcap 100 index declined 0.2 per cent.
Wipro was top gainer in the Nifty 50 basket of shares. The stock rose 7.34 per cent to close at record high of Rs 359.90 after the company told exchanges that its board will consider share buyback proposal on October 13. TCS closed 3 per cent higher at Rs 2,818 after its net profit rose 7 per cent to Rs 7,475 crore in September quarter. Cipla, UltraTech Cement, Infosys, HCL Technologies, HDFC Bank, Divis Labs, Sun Pharma and Dr Reddy’s Labs also rose between 2-3 per cent each.
On the flipside, GAIL India, ONGC, ITC, Eicher Motors, Larsen & Toubro, Coal India, Power Grid, Reliance Industries and SBI Life were among the losers.
The overall market breadth was negative as 1,437 shares ended lower while 1,245 closed higher on the BSE.