Sensex, Nifty Snap Two-Day Losing Streak Led By IT Shares
The S&P BSE Sensex and NSE Nifty 50 indexes snapped their two-day losing streak led by gains in information technology heavyweights like Infosys, Tata Consultancy Services and HCL Technologies. The benchmarks staged a gap up opening and briefly came off intraday highs in noon deals but strengthened later. The Sensex rose as much as 413 points and Nifty touched an intraday high of 10,409.85 and low of 10,311.25.
The Sensex ended 329 points or 0.94 per cent higher at 35,171 and Nifty advanced 94 points or 0.91 per cent to close at 10,383.
"Because of concerns over economic degrowth and rising infections ... sectoral churning is happening with money moving to safety," Saurabh Jain, assistant vice president of research at SMC Global Securities told news agency Reuters.
"Markets are looking at the balance sheet and cash flows. Big IT companies have such balance sheets and can easily adapt to situations."
Seven of 11 sector gauges compiled by the National Stock Exchange ended higher led by Nifty IT index's over 4 per cent gain. Nifty Private Bank, PSU Bank and Metal indexes rose between 0.6-0.9 per cent each.
On the other hand, Nifty FMCG index was top loser, down 0.9 per cent.
Mid- and small-cap shares underperformed their larger peers as Nifty Midcap 100 and Nifty Smallcap 100 indexes rose o.2 per cent and 0.3 per cent each respectively.
Infosys was top Nifty gainer, the stock rose 6.6 per cent to close at Rs 747. BPCL, TCS, Indian Oil, IndusInd Bank, Wipro, HDFC Bank, ONGC, Hindalco and Shree Cements were also among the gainers.
On the flipside, Bajaj Finance, ITC, Bharti Infratel, Kotak Mahindra Bank, Tata Motors, Sun Pharma, Mahindra & Mahindra, Hindustan Unilever and Vedanta were among the laggards.
The overall market breadth was positive as 1,654 shares closed higher while 1,064 ended lower on the BSE.