BENGALURU: India’s blue-chip indexes hit all-time highs on Friday, and logged weekly gains, led by gains in information technology (IT) companies after market leaders TCS and Infosys posted quarterly reports that alleviated concerns about weak demand.
On the day, the NSE Nifty 50 added 1.14% to close at a record 21,894.55 points, while the S&P BSE Sensex climbed 1.18% to 72,568.45. They gained about 0.8% for the week.
The IT index jumped 5.14%, logging its best session since Oct. 8, 2020, to hit a 21-month high.
Tata Consultancy Services climbed 3.94% and Infosys surged 7.93% after they posted third-quarter revenue growth that beat expectations and indicated the overall demand situation had not deteriorated further.
“Better-than-expected results and commentary from TCS and Infosys have boosted the sentiment in Indian markets at the start of the earnings season,” said Siddharth Sedani, head and executive vice president of equity product and advisory support at Anand Rathi Financial Services.
Indian shares eke out gains ahead of TCS, Infosys results, US inflation data
Six IT stocks, including Infosys and TCS, were among the top seven gainers on the Nifty, with a minimum gain of 3.77%. HCLTech and Wipro, due to report earnings after the bell, closed up 3.77% and 3.85% higher.
Investors also await domestic inflation data after the bell, with the consumer price index expected to have risen in December but stayed within the central bank’s target range.
Elevated inflation could prolong the central bank’s rate pause, likely weighing on rate-sensitive sectors like auto, realty and consumer goods.
On Thursday, data showed U.S. consumer price inflation rose more than expected to 0.3% in December which could delay a much anticipated U.S. interest rate cut in March.
That, in turn, could spur further consolidation in global equities, analysts said.
Comments
Comments are closed.