Sensex at 10-day high, IT pack leads rally on TCS earnings
The benchmark Sensex on Friday surged over 80 points to close at 25,641.56, its highest in 10 days, on sustained buying by foreign funds in IT shares after encouraging earnings from TCS.business Updated: Jul 18, 2014 18:44 IST
The benchmark Sensex on Friday surged over 80 points to close at 25,641.56, its highest in 10 days, on sustained buying by foreign funds in IT shares after encouraging earnings from TCS.
After opening in the negative zone and slipping further to 25,441.24 on profit-booking and a weak global cues on rising geopolitical tensions, the 30-share Sensex bounced back to close 80.40 points, or 0.31%, higher at 25,641.56 after touching the day's high of 25,713.40.
The gauge has now gained over 634 points in four days.
Friday's closing is the highest since 26,100.08 (July 7). For the week, it has gained 617.21 points.
"The week saw benchmark indices rise by about 3% as concerns on crude price eased. Monsoon also progressed during the week, easing worries on inflation. Quarterly results, especially from IT majors, were above estimates and improved sentiments," said Dipen Shah, head- Private Client Group Research, Kotak Securities.
The 50-share Nifty of National Stock Exchange also spurted by 23.45 points, or 0.31%, to close the day at 7,663.90 after shuttling between 7,595.50 and 7,685.00.
Shares of TCS surged 2.58% after analysts said the country's largest software exporter posted better-than-expected earnings in the June quarter.
The IT giant, which is also the country's most valued firm in terms of market valuation, also emerged the top gainer on the Nifty. TCS had on Thursday posted a 45% jump in June quarter net profit at Rs 5,568 crore.
Other Sensex gainers were Infosys, Wipro, ICICI Bank, Hero MotoCorp, L&T, Axis Bank,, Tata Steel, HDFC and Cipla.
However, gains were limited as global markets remained under pressure after the downing of a Malaysian airliner at the Ukraine-Russia border, new sanctions on Moscow and unrest in Gaza, brokers said.
Sectorwise, the BSE IT index gained the most by surging 1.43%, followed by Teck index 0.91%, Banking index 0.77% and Capital goods index 0.42%.
Foreign Portfolio Investors bought shares worth Rs 1,912.42 crore on Thursday, as per provisional data.