Reliance, IT stocks lift Indian shares as vaccine hopes boost optimism
Wipro rose as much as 19.4% to its biggest percentage gain in over 11 years and topped the Nifty 50 blue-chip index, after reporting a better-than-expected profit for the three months ended June 30.Updated: Jul 15, 2020 11:47 IST
Indian shares jumped over 1.5% on Wednesday as upbeat results for IT outsourcer Wipro and signs of new foreign investment inflows countered fears about the surge in domestic coronavirus cases.
India’s most valuable stock Reliance Industries rose about 1.3% ahead of an annual general meeting due later in the day after Bloomberg reported on Tuesday that Alphabet Inc’s Google was in advanced talks to invest $4 billion in the digital arm of the conglomerate.
“This time, everyone is hooked on to Reliance because of the deals they have been doing on their Jio platforms,” said Rusmik Oza, head of fundamental research at Kotak Securities.
Wipro rose as much as 19.4% to its biggest percentage gain in over 11 years and topped the Nifty 50 blue-chip index, after reporting a better-than-expected profit for the three months ended June 30 along with the acquisition of Brazil-based IVIA Servicos De Informatica Ltda.
Larger rival Infosys, which is expected to report first-quarter results Wednesday evening, gained 6.75% after it announced a partnership with U.S.-based investment management firm Vanguard late on Tuesday.
“Wipro came out with a good surprise number and the start of the earnings season has been good so far. It looks quite healthy,” Oza said.
By 0500 GMT the NSE Nifty index and the S&P BSE Sensex were up around 1.75% at 10,791.55 and 1.83% at 36,690.16, respectively.
Overnight, Asian shares were lifted after news of the success of a potential COVID-19 vaccine in early stage trials boosted sentiment.
“A lot of optimism is coming because of the vaccine news,” said Rajesh Cheruvu, chief investment officer at Validus Wealth in Mumbai. “This is an important development in terms of addressing the crisis”.
Among domestic sectors, The Nifty IT index gained as much as 5.32% and touched its highest since February, while the Nifty banking index rose 2.37%.
Mobile services operator Bharti Airtel was the session’s top laggard, dropping 1.2%.