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Sensex reclaims 40k-mark after 7 months; TCS leads IT pack higher

Sensex reclaims 40k-mark after 7 months; TCS leads IT pack higher

Published:08 October 2020

The BSE Sensex rallied for the sixth straight day to reclaim the 40,000-mark on Thursday, with IT shares hogging the limelight after robust results from TCS indicated that the worst may be over for the software services industry.

Mumbai | The BSE Sensex rallied for the sixth straight day to reclaim the 40,000-mark on Thursday, with IT shares hogging the limelight after robust results from TCS indicated that the worst may be over for the software services industry.
After soaring over 400 points during the day, the 30-share benchmark ended 303.72 points or 0.76 per cent, higher at 40,182.67.
The Sensex has closed above the crucial 40,000-mark after February 25 this year.
The broader NSE Nifty climbed 95.75 points, or 0.82 per cent, to finish at 11,834.60.
UltraTech Cement topped the Sensex gainers' chart with a jump of 3.24 per cent, followed by TCS, HCL Tech, Infosys, HDFC Bank, Sun Pharma and Tech Mahindra.
India's largest software services firm Tata Consultancy Services (TCS) has reported a 4.9 per cent rise in consolidated net profit to Rs 8,433 crore for the September 2020 quarter, and also announced a share buyback plan of up to Rs 16,000 crore.
On the other hand, ONGC, ITC, Reliance Industries, L&T, PowerGrid and Asian Paints were among the major laggards, shedding up to 2.84 per cent.
RIL came under selling pressure after Amazon.com Inc slapped a legal notice on Future Group over its Rs 24,713 crore asset sale to the Mukesh Ambani-led conglomerate.
"A good start to Q2 result led by the IT and banking sector, along with positive announcements like buyback has lifted the market. At the same time, expectation of a stimulus in India and the US has improved.
"Initially, the thought was that the domestic stimulus will be small due to weak fiscal position, which changed positively post few comments from government officials, and now the expectation has become bigger.
"In the US, an intermediary aid has been provided before the final stimulus which is expected post the election. The market is moving positively in-line with the enhancement of easy money policy and the corporate results," said Vinod Nair, Head of Research at Geojit Financial Services.
Sector-wise, the BSE IT, tech, healthcare, telecom and bankex indices spurted up to 2.99 per cent, while energy, oil and gas, capital goods and industrials closed in the red.
In the broader markets, the BSE midcap index gained 0.29 per cent, while the smallcap gauge tumbled 0.26 per cent.
Global equities were boosted by hopes of a piecemeal stimulus package in the US, even as President Donald Trump has called off negotiations for a wider pandemic relief deal.
In Asia, bourses in Shanghai, Seoul and Tokyo ended higher, while Hong Kong closed with losses.
Stock exchanges in Europe were trading positive in early deals.
International oil benchmark Brent crude was trading 1.62 per cent higher at USD 42.67 per barrel.
In the forex market, the rupee strengthened by 9 paise to settle at 73.24 against the US dollar.


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