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Sensex Gains Around 200 Points, IT Index Soars Over 5%

Sensex Gains Around 200 Points, IT Index Soars Over 5%

Infosys shares soared 13 per cent at Rs 942 on BSE and NSE due to better-than-expected earnings.

The domestic stock markets are firm in mid-morning trading, as Infosys catapulted the IT Index higher by more than 5 per cent on the back of  better-than-expected earnings for the quarter ended June 30. At 10:54 am, the S&P BSE Sensex index traded 218 points - or 0.6 per cent - higher at 36,270.72, while the broader NSE Nifty 50 benchmark was up 38 points - or 0.3 per cent - at 10,651.45. The Sensex had opened 349.39 points (0.97 per cent) higher at 36,401.20, and the Nifty started the day at 10,706.20 as against its previous close of 10,618.20. 

Infosys shares soared by 13 per cent at Rs 942 on both, BSE and NSE after the IT major reported a net profit of Rs 4,233 crore for the April-June period. Infosys' revenue from operations rose 1.7 per cent to Rs 23,665 crore from Rs 23,267 crore in the previous quarter. On an annual basis, Infosys' net profit rose 11.4 per cent from Rs 3,798 crore during the same quarter last year.

Analysts had on average expected a profit of Rs 3,987 crore, news agency Reuters reported citing Refinitiv data.

Analysts awaited more large cap companies to report their financial results for the April-June period.

The gains in the benchmark indices were led by the Nifty IT index, which zoomed 5.5 per cent to 17372, on the back of stellar gains in the index bellweather, Infosys and strength on the other IT counters. TCS had strengthened by 3 per cent to Rs 2301 and HCL Tech has gained 3.8 per cent to Rs 639, on the NSE.

Meanwhile, Reliance Industries shares bounced back over 1 per cent, a day after shedding 4 per cent due to disappointment over the widely anticipated Saudi Aramco deal. Google decided to invest Rs 33,737 crore for a 7.7 per cent stake in Jio Platforms. The investment by Google, announced by Reliance Industries chairman Mukesh Ambani at the AGM, would take the cumulative fund-raising by Reliance Industries to Rs 2,12,809 crore in less than three months.

On the other hand, Infratel, IOC and NTPC were trading lower by around 3 per cent, on the NSE.

The NSE market breadth was weak. Out of 2,148 stocks traded on the NSE, there were 517 advancing stocks as against 1,180 declines.