Nifty Above 21,700, Sensex Up 300 Points, and Infy and TCS Soar Up 5% Following Q3 Results
Sensex Today: IT shares led the way as benchmark stock indexes got Friday’s trading session off to a strong start.
The S&P BSE Sensex began trading at 72,148, up 427 points and was seen quoting at 72,050 levels, up 300 points. The NSE Nifty 50 was seen to be up 100 points, or circling about 21,750.
Infosys and TCS were the leading gainers, following Q3 earnings, within the Sensex 30 pack — up 5 percent and 3 percent, respectively. HCL Technologies, Tech Mahindra, and Wipro all saw increases of one to two percent.
Conversely, Hindustan Unilever had a 1% decline. The other big losses were Mahindra & Mahindra, Nestle, and Reliance.
The Q3 results of Infosys and TCS showed a slowdown in international markets. Following the release of its Q3 net profit decline of 7.3%, the former lowered its expectation for sales growth for the third consecutive quarter. The IT company owned by the Tata Group announced a 2% increase in net earnings. Continue Reading
In the overall market, the BSE MidCap index increased by 0.3%, while the SmallCap index increased by 0.5%.
IT stocks will move today due to Infosys’ in-line earnings and TCS’s better-than-expected results. The strength of Reliance and the resilience of IT companies would allow Nifty to settle around 21600 levels. The market will be closely observing HDFC Bank’s earnings on January 16th for clues on Bank Nifty’s trajectory, according to Dr. VK Vijaykumar of Geojit Financial.
Worldwide Cues
In other Asian news, the Nikkei jumped by an additional 1% this morning, reaching a level close to 35,500, which is a record high since 1990. Among others, the Shanghai and Hang Seng indexes increased by up to 0.5 percent, while the Kospi, Taiwan, and Straits Times indexes decreased by the same amount.
The US market recovered heavily from its overnight losses to close the day flat on higher-than-expected inflation data. The headline CPI in the US increased by 0.3% in December, yielding a 3.4% annual rise. That was anticipated to be 3.2% and 0.2%, respectively.
