IT stocks lift Indian shares to record closing highs ahead of TCS results

BENGALURU: IT services' stocks powered Indian shares to record closing highs on Friday, as the sector kicks off the third-quarter earnings season, with Tata Consultancy Services set to report its results later in the day.

The blue-chip NSE Nifty 50 index closed up 1.48% at 14,347.25 and the benchmark S&P BSE Sensex gained 1.43% to 48,782.51. Both indexes ended the first trading week of the new year with gains of 2.3% and 1.9%, respectively.

Aiding sentiment, global markets soared to record highs on hopes of an economic recovery later in the year.

The Nifty IT index jumped 3.61%, with TCS gaining 2.9% ahead of its results. The stock was among the top boosts to the Nifty 50.

Rivals Infosys and Wipro added 4% and 5.8%, each, ahead of their results next week. Analysts are expecting the companies to kick off the third-quarter earnings season on a strong note.

Indian equities in the new year have also been boosted by foreign fund inflows and coronavirus vaccine approvals at home. The government is conducting a massive vaccine rollout dry run on Friday, to be held in 736 districts across 33 states and union territories.

Separately, India's Central Statistics Office estimated on Thursday that the economy would contract 7.7% in the current financial year, broadly in line with forecasts of private economists and the central bank.

Among other sectors, the Nifty Auto Index rose 3.3%, while the Nifty Pharma Index added 1.61%.

Biocon closed up 2.4% after the biopharmaceutical firm said on Thursday Abu Dhabi-based holding company ADQ would invest 5.55 billion rupees ($75.79 million) in its biologics unit.

Home textile company Himtasingka Seide ended 6% higher after entering into a licensing deal with Walt Disney Co for the European region, to make and distribute a range of home textile products inspired by Disney characters.