Rally in IT sector lifts Sensex
The stock market benchmark sensex on Monday snapped a two-day losing streak and added 302 points.india Updated: Apr 17, 2006 17:55 IST
The stock market benchmark sensex on Monday snapped a two-day losing streak and added 302 points, thanks to excellent Q4 earnings and a liberal bonus from Infosys, even as investors bet heavily on key scrips.
Infosys Technologies not only announced better-than- expected fourth quarter earnings and a 1:1 bonus, but also forecast better earnings ahead on outsourcing boom, indicating an encouraging earnings season.
The market was so jubilant over the development that the 30-share Index (sensex) scored the biggest gains of 302.45 points since May 18, 2004 when it soared up by 371.86 points.
The sensex opened with a big bang at 11,323.74 and later touched an intra-day high of 11,560.90 before ending the day at 11,539.68. It had closed at 11,237.23 on Thursday.
Operators and retailers reportedly covered positions in the Nifty and even made hectic purchases in cash with a focus on IT majors like Infosys Tech, TCS Ltd, Satyam Computers and Wipro.
Domestic funds were also believed to be heavy buyers in blue chip stocks. Foreign Institutional Investors (FIIs), however, have drastically slowed down their inflows.
The sensex had fallen by 352 points or 3.04 per cent in high volatility, adjusting to a healthy correction in last week following a huge pull out by FIIs, which reported a net sales of over Rs 7,000 crore in futures so far in April and Rs 1206.5 crore in Cash on April 10 and 12.