Driven by robust gains in information technology stocks, shares reached record closing highs on Thursday. LTIMindtree’s exceptional results boosted confidence in a sector recovery.
The NSE Nifty 50 added 0.76% to end at 24,800.85, while the S&P BSE Sensex settled 0.78% higher at 81,343.46. They both opened lower, before recovering to hit intra-day all-time highs.
Ten of the 13 major sectors logged gains. The IT index jumped 2.22% to a record high. LTIMindtree rose 3.5% after it reported a bigger-than-expected rise in first-quarter profit on Wednesday.
Infosys rose about 2% on the day. Its results, which came just after the close, showed India’s No.2 IT company beat revenue estimates, helped by a recovery in demand from clients in its key verticals.
The IT index has gained 7.2% in the four sessions since market leader Tata Consultancy Services’ results sparked hopes of a revival in demand for the sector. Besides the positive start to the earnings season from IT companies, expectations of policy continuity in the national budget on July 23 is another trigger for the market rally, analysts said.
“Markets are rejoiced by the fact that the government has the leeway to spend on boosting demand and consumption, while maintaining its adherence to fiscal prudence,” said Harish Krishnan, co-chief investment officer and head of equity at Aditya Birla Sun Life Asset Management Company.
Still, not all earnings were positive.
Bajaj Auto (BAJA.NS), opens new tab dropped about 1% after analysts flagged weakness in exports and elevated valuation as key concerns after the automaker reported in-line quarterly results on Tuesday.
Asian Paints (ASPN.NS), opens new tab lost about 1.5% after its quarterly earnings missed expectations due to weak demand and price cuts.
The broader, more domestically focussed mid-caps lost about 1% each.
(Reuters)