BENGALURU: Indian shares closed higher on Friday, led by a bounceback in information technology (IT) stocks after their recent slide, while a report of a Blackstone investment in Cipla boosted pharma stocks.
The Nifty 50 index closed 0.70% higher at 19,517, while the S&P BSE Sensex rose 0.74% to 65,721.25.
Despite Friday’s rise, the benchmarks extended losses for the second week in a row, losing 0.66% each as weak global cues, including a downgrade of the United States’ long-term foreign currency ratings and weak China data dampened mood.
On Friday, ten of the 13 sectoral indexes logged gains on the day, with IT rising 1.55% after U.S. technology and consulting firm Cognizant maintained its full-year revenue outlook and reported in-line results in second quarter of 2023.
“While Cognizant’s revenue outlook is a positive for its Indian peers, the pressure on the sector is likely to persist due to spending cuts,” said Hem Securities analyst Astha Jain, calling the rise in IT stocks this week a “technical bounce after the recent sharp slide”.
Indian shares open higher tracking Asian peers
The IT index, which had lost nearly 5% over the last two weeks since quarterly earnings of major firms like TCS, HCLTech, Wipro and Infosys, gained 3.21% this week.
Pharma stocks gained 0.94%, led by Cipla on a report that Blackstone was looking to buy a stake in the drug maker. Cipla was the top Nifty 50 gainer, adding 3.77%.
Broader markets mirrored the benchmarks, with the more domestically focused mid-caps and small-caps adding 0.82% and 0.76%, respectively.
“The interest in broader markets is driven by cost efficiencies, higher sales volumes and operational improvements,” said Rahul Sharma, head of technical research at Mumbai-based investment advisory firm Equity99.
Among individual stocks, Paytm gained 3.78% after posting a strong operational update for July.
Zomato surged 10.23% after reporting a quarterly net profit for the first time ever.
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