BENGALURU: India’s main indexes hit record highs for the second consecutive session on Monday, boosted by information technology stocks following better-than-expected results from HCLTech and Wipro.
The blue-chip NSE Nifty 50 index added 0.53% to 22,010.80 points, while the S&P BSE Sensex climbed 0.70% to 73,075.41, as of 10:08 a.m. IST.
The Nifty 50 surpassed the 22,000 level, while the Sensex breached the 73,000 mark for the first time ever.
The IT index surged as much as 3.85% to its highest level since Jan. 19, 2022.
Shares of Wipro jumped 10% following better-than-expected revenue in a seasonally weak quarter, while HCLTech climbed 4% after reporting net profit above estimates.
Wipro, Tech Mahindra, HCLTech, LTIMindtree and Infosys were the top Nifty 50 gainers, adding between 3% and 10%.
IT stocks added 4.79% on Friday, led by the rise in Tata Consultancy Services and Infosys after their third quarter results.
“Indian equities offer an attractive growth outlook, but valuations are a potential headwind,” said Zhong Liang Han, investment strategist at Standard Chartered.
IT stocks power Indian shares to new highs, weekly gains
“We prefer large-caps over small and mid-cap equities,” Han said.
The small and mid-cap indexes each saw gains of about 0.2%.
If earnings do not justify the high valuations, there could be selling pressure, especially in small and mid-caps, two analysts said.
Among individual stocks, Just Dial advanced 5% after its third-quarter profit rose. Bharat Heavy Electricals added 2.5% on securing a 150 billion rupees ($1.81 billion) order from NLC India.
Associated Alcohols and Breweries gained 2.5% after announcing start of commercial production at its ethanol plant in Madhya Pradesh.
Asian shares were muted as China’s central bank surprised the markets with a rate pause ahead of key economic data and earnings reports.
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