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Sensex heads for fourth session of gains, Infosys leads

Infosys shares were up 3.8% after earlier rising as much as 4.6% on hopes that the appointment would provide some much needed stability to the company that has been reeling since the shock resignation of chief executive Vishal Sikka.

business Updated: Aug 28, 2017 15:19 IST
Reuters
Reuters
Mumbai
Sensex,Nandan Nilekani,Infosys
A man looks at a screen across the road displaying the Sensex on the facade of the Bombay Stock Exchange (BSE) building in Mumbai.(Reuters File)

Indian shares rose on Monday, heading for a fourth consecutive session of gains, as Infosys Ltd surged on the first day of trading since the appointment of co-founder Nandan Nilekani as chairman on hopes that the move would help defuse a months-long row between the founders and the board.

Infosys shares were up 3.8% after earlier rising as much as 4.6% on hopes that the appointment would provide some much needed stability to the company that has been reeling since the shock resignation of Chief Executive Vishal Sikka, who waged an acrimonious battle with the founders for months over alleged corporate governance lapses.

Analysts warned markets could see some volatility in the days ahead as monthly derivatives contracts are due to expire on Thursday.

“There is some sort of relief rally in Infosys,” said Krish Subramanyam, co-head - equity adviser at Altamount Capital Management, adding “there will be some volatility (ahead) as this is the expiry week”.

As of Thursday’s close, Infosys shares had shed 10.6% since August. 18, the day Sikka resigned.

The Nifty was up 0.50% at 9,906.55 as of 0617 GMT, while the Sensex rose 0.49% at 31,752.12.

Markets were closed on Friday for a public holiday.

IT stocks led the gains. The Nifty IT index rose as much as 1.3% and was on track for a fourth straight session.

Among other gainers, Adani Enterprises Ltd rose as much as 9.3% in its biggest intraday percentage gain since June 6 after it said it plans to begin work on the controversial Carmichael coal project in Australia in October.

Nestle India Ltd touched a one-month high after it reassured investors that it would focus on driving volume growth through new product launches, and Credit Suisse upgraded it to “outperform”.

But Dr. Reddy’s Laboratories Ltd dropped as much as 2.9% after it said that a law firm representing an investor filed a class action lawsuit in New Jersey against the company, its CEO and CFO.

First Published: Aug 28, 2017 15:19 IST