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Rediff.com  » Business » Sensex at 10-day high, IT pack leads rally on TCS earnings

Sensex at 10-day high, IT pack leads rally on TCS earnings

Last updated on: July 18, 2014 16:52 IST

The benchmark Sensex on Friday surged over 80 points to close at 25,641.56, its highest in 10 days, on sustained buying by foreign funds in IT shares after encouraging earnings from TCS.

After opening in the negative zone and slipping further to 25,441.24 on profit-booking and a weak global cues on rising geopolitical tensions, the 30-share Sensex bounced back to close 80.40 points, or 0.31 per cent, higher at 25,641.56 after touching the day's high of 25,713.40.

The gauge has now gained over 634 points in four days.

Today's closing is the highest since 26,100.08 (July 7). For the week, it has gained 617.21 points.

"The week saw benchmark indices rise by about 3 per cent as concerns on crude price eased.

Monsoon also progressed during the week, easing worries on inflation. Quarterly results, especially from IT majors, were above estimates and improved sentiments," said Dipen Shah, Head- Private Client Group Research, Kotak Securities.

The 50-share Nifty of National Stock Exchange also spurted by 23.45 points, or 0.31 per cent, to close the day at 7,663.90 after shuttling between 7,595.50 and 7,685.00.

Shares of TCS surged 2.58 per cent after analysts said the country's largest software exporter posted better-than-expected earnings in the June quarter.

The IT giant, which is also the country's most valued firm in terms of market valuation, also emerged the top gainer on the Nifty.

TCS had yesterday posted a 45 per cent jump in June quarter net profit at Rs 5,568 crore (Rs 55.68 billion).

Other Sensex gainers were Infosys, Wipro, ICICI Bank, Hero MotoCorp, L&T, Axis Bank,, Tata Steel, HDFC and Cipla.

However, gains were limited as global markets remained under pressure after the downing of a Malaysian airliner at the Ukraine-Russia border, new sanctions on Moscow and unrest in Gaza, brokers said.

Sector wise, the BSE IT index gained the most by surging 1.43 per cent, followed by Teck index 0.91 per cent, Banking index 0.77 per cent and Capital goods index 0.42 per cent. Foreign Portfolio Investors bought sha shares worth Rs 1,912.42 crore yesterday, as per provisional data.   

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