Indian stocks made a convincing upward rally on Monday on global cues and news on the domestic political front. Technology stocks topped the charts with Wipro gaining over 8 per cent on news of its impending bid for Europe’s largest computer services firm Capgemini.
The Bombay Stock Exchange IT index gained 6.1 per cent on Monday, while the Sensex moved 3.6 per cent (691.55 points) to close at 19,854.12. “Trading volumes were lower today as there were not many FIIs. We believe the rally in IT stocks would continue until they announce third quarter results in January,” said Sapan Patel, a member of Bombay Stock Exchange.
The Gujarat election results pushed up not only state public sector stocks and others Gujarat-based stocks, but also hopes that the UPA government at the Centre would last a full-term ruling out the possibility of an early election. Gujarat state PSU stocks gained between 5 per cent and 9 per cent with Mundra Port gaining 8 per cent. “The government in Gujarat was waiting for the election results. Now that the ruling party has come back to power, they would put through some stake sale,” said MAA Annamalai of Akshaya & Co.