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Friday, 16 October
Sensex74,729.27+0.56%
Nifty 5023,146.15+0.65%
₹ / $94.89−0.10
Repo rate5.50%+0.25 on 7 Oct
Markets: 16 Oct close
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EconomyMarkets

IT shares lift Sensex 414 points as it ends the week up 3.1%

Tech Mahindra, TCS and Infosys led Friday's gains after strong results from the sector. The Nifty closed above 23,000 for the first time this week and foreign funds turned buyers.

From the editorial desk · MumbaiPublished
Exchange Plaza, the National Stock Exchange building in Mumbai (file photo)
Exchange Plaza, the National Stock Exchange building in Mumbai (file photo)Photo: Jnpet / Wikimedia Commons, CC BY-SA 3.0

Key points

  1. The Sensex rose 413.66 points to 74,729.27 and the Nifty 50 closed at 23,146.15.
  2. The Nifty IT index jumped 3.92%, with Tech Mahindra up 8.5% a day after its results.
  3. Over the week the Sensex gained 2,256.94 points, or 3.1%.

Indian shares rose for a second day on Friday as technology stocks extended a rally sparked by strong September-quarter results, leaving the Sensex more than 3% higher for the week.

The BSE Sensex closed 413.66 points, or 0.56%, higher at 74,729.27. The NSE Nifty 50 added 148.80 points, or 0.65%, to 23,146.15, its first close above 23,000 this week. The market had opened lower and spent the first hour in the red before buying in IT shares turned it around.

Tech leads the way

The Nifty IT index jumped 3.92%, by far the best of the sector gauges. Tech Mahindra was the top gainer among large shares, rising about 8.5% to ₹1,790 a day after it reported a 33% rise in quarterly profit and announced a one-for-one bonus issue. TCS gained 4.9% and Infosys 4.6%, and Bharti Airtel and HCLTech were also among the leaders.

Wipro, which reported on Thursday, also rose sharply even though its forecast for the December quarter was cautious.

Metal and auto shares added to the gains. Banks did little: the Bank Nifty ended almost flat, and consumer goods, realty and consumer durables shares slipped. InterGlobe Aviation, the operator of IndiGo, was the biggest loser in the Nifty, falling 1.9%, with BSE Ltd and Max Healthcare also lower.

Smaller companies lagged again. Midcaps made modest gains while smallcaps came under pressure, a pattern that has held through much of the week’s rally.

A strong week

Friday’s close left the Sensex 2,256.94 points, or 3.1%, higher than a week ago. The Nifty rose 625.70 points, or 2.8%, over the five sessions. Thursday’s 1,534-point jump in the Sensex did most of the work.

Several things helped. Bond yields eased, oil prices came off their highs and the rupee rose for a sixth day in a row, ending at 94.89 to the dollar. Brent crude was down 0.34% at $105.56 a barrel in the evening.

Foreign investors, who have been heavy sellers this year, bought a net ₹1,165.92 crore of Indian shares on Friday, according to provisional exchange data.

What comes next

The results season moves to the banks on Saturday, when HDFC Bank, ICICI Bank, Axis Bank and YES Bank are due to report. After a week in which bank shares did much of the lifting on Thursday, their numbers will set the tone for Monday.

LTM, the company formerly called LTIMindtree, Punjab National Bank, Federal Bank and DLF also reported their September-quarter numbers on Friday.