Sensex Surges Over 690 Points, Nifty Tops 24,150 on IT Rally
Equity market benchmark indices Sensex and Nifty rose in early trading on Friday, driven by a rally in IT companies after TCS reported a rise in June quarter net profit, pointing to a rebound in demand in the ongoing quarter. The positive trend in global markets caused domestic stocks to rise in the first transactions.
The 30-share BSE Sensex rose 694.83 points to 77,423.82 in early trade. The 50-share NSE Nifty rose 195.95 points to 24,154.85. From the Sensex pack, HCL Tech, Infosys, Tata Consultancy Services, Tech Mahindra, UltraTech Cement and Asian Paints were among the big gainers.
TCS was trading nearly 2 per cent higher after the country’s largest IT services company on Thursday reported a 4.61 per cent rise in net profit in the June quarter to 13.349 billion rupees, bouncing back in the ongoing quarter, driven by recovery in demand affected by the West Asian crisis.
Bharti Airtel and Sun Pharma were the laggards.
In Asian markets, South Korea’s Kospi index increased by over 4 percent, Japan’s Nikkei 225 index increased by 1.91 percent, Shanghai’s SSE Composite index increased by 0.76 percent and Hong Kong’s Hang Seng index increased by 1.73 percent.
US markets closed higher on Thursday.
“Tensions in West Asia continue without a clear solution to the geopolitical crisis. However, interestingly, the markets are largely ignoring these negative developments,” said VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited. he said.
He said global stock markets were completely ignoring the renewed tensions.
“This confident message from the market is important. However, investors need to be careful and follow the developments,” added Vijayakumar.
Global oil reference Brent crude oil increased by 0.33 percent to $76.55 per barrel.
Foreign Institutional Investors (FIIs) sold shares worth Rs 532.86 billion on Thursday, according to stock exchange data.
On Thursday, Sensex rose 238.22 points or 0.31 per cent to settle at 76,741.82. Nifty rose 80.75 points or 0.34 per cent to 23,962.80.
