Sensex up 422 pts to month high on Infy earnings, global mkts
The BSE Sensex shot up 422 points today to 4-week high of 16,958.39, propelled by heavyweight Infosys as it posted better-than-expected second quarter earnings and a firm trend in global markets.business Updated: Oct 12, 2011 18:13 IST
The BSE Sensex shot up 422 points on Wednesday to 4-week high of 16,958.39, propelled by heavyweight Infosys as it posted better-than-expected second quarter earnings and a firm trend in global markets.
Investors shrugged off industrial output data that showed slow growth of 4.1% during August and buying was so strong that all the 13 sectoral indices gained between 5.12% and 2.06%.
IT, banking, realty, capital goods and metal sectors showed strong growth.
IT major Infosys, which has around 10% weight on Sensex, reported 9.72% rise in Q2 consolidated net profit, which brokers said was above market expectations.
After being the top loser yesterday, Infosys closed 6.83% up. It was the top gainer today contributing over 100 points to Sensex gain.
The BSE 30-share barometer opened higher and remained in the positive terrain throughout. It settled at 16,958.39 --highest closing since September 9 -- showing net rise of 421.92 points or 2.55% from yesterday's close.
Similarly, the broader 50-issue Nifty also rebounded by 125.05 points or 2.51% to end at 4-week high of 5,099.40. It logged a high of 5,109.80 during intra-trade.
"Sensex inched higher in the opening trade on the back of better than expected earnings from Infosys, and well supported by banks, metals and FMCG stocks," said Shanu Goel, Senior Research Analyst at Bonanza Portfolio.
"In the afternoon, markets trimmed some gains on the back of August IIP data which came at 4.1%, below than street expectations," she added.