Stocks

Sensex settles above 40K; IT stocks hog limelight

PTI | Updated on October 08, 2020

istock.com/sefa ozel   -  istock.com/sefa ozel

Nifty up 95.75 points to 11,834.60

Equity benchmark Sensex rallied over 300 points on Thursday and settled abover key psychological 40K mark led by strong buying sentiment in IT and banking stocks amid positive cues from global markets and sustained foreign fund inflows.

IT stocks were in focus after solid Q2 numbers reported by TCS along with announcement of the buyback offer, followed by Wipro's buyback plan.

The 30-share index ended 303.72 points or 0.76 per cent higher at 40,182.67. It touched an intraday high of 40,468.88 before witnessing some profit booking towards the late session.

Similary, the NSE Nifty soared 95.75 points or 0.82 per cent to 11,834.60.

Tata Consultancy Services (TCS) was one of the top gainers in the Sensex pack, which surged nearly 3 per cent, after the IT major announced a mega-Rs 16,000 crore buyback plan at Rs 3,000 per equity share.

The firm, meanwhile, reported a 6.87 per cent dip in the September quarter net at Rs 7,504 crore but said the demand has recovered faster than projected and will be sustainable going forward as well.

In the Sensex pack, the other stocks that settled on a positive note include HCL Tech, Infosys, Tech Mahindra, Sun Pharma, Tata Steel, Bajaj Finserv, IndusInd Bank, ICICI Bank and SBI.

On the other hand, ONGC, Asian Paints, Titan, L&T. ITC and PowerGrid were among the laggards.

Exchange data showed that foreign institutional investors bought equities worth Rs 1,093.81 crore on a net basis on Wednesday.

According to Arjun Mahajan, Head - Institutional Business - at Reliance Securities, while there is still some amount of ambiguity about fiscal stimulus, US President Donald Trump’s remark to sign separate fiscal stimulus created positive sentiments which led US markets to move higher.

Indian market is moving in tandem with global markets, he said, adding that better prospects of Q2 earnings and continued hope about domestic fiscal stimulus will provide support to domestic benchmarks.

 

IT stocks in focus

IT stocks were in focus after solid Q2 numbers reported by TCS along with announcement of the buyback offer, he added.

Shares of Tata Consultancy Services (TCS) on Thursday jumped over 5 per cent after the company announced a mega-Rs 16,000 crore buyback plan at Rs 3,000 per equity share.

TCS reports 6.45% profit in Q2; to buyback up to Rs 16,000 cr in shares

 

TCS surges on share buyback announcement, results

TCS was one of the top gainers in the Sensex pack. The stock rose by 5 per cent to Rs 2,875 -- its one-year high -- on the BSE intraday, before finishing at Rs 2,827.30, up by 3.28% over it previous lcose.

On the NSE, it jumped 3.02 per cent to end at Rs 2,818.45.

“TCS impressed with revenue growth of 4.8 per cent quarter-on-quarter. Broad-based growth across geographies and verticals indicates healthy recovery across segments,” said a report by Motilal Oswal Research.

In 2017 and 2018 too, TCS had undertaken buyback offers of similar sizes.

The board of directors of the company has approved a proposal to buyback up to 5,33,33,333 equity shares of the company for an aggregate amount not exceeding Rs 16,000 crore, being 1.42 per cent of the total paid-up equity share capital at Rs 3,000 per equity share, TCS said in a regulatory filing on Wednesday.

Other IT stocks such as Infosys shares were up by 2.57% at Rs 1,094, HCL Tech rose 2.57% to Rs 849.55 and Tech Mahindra gained 1.62% to Rs 860.35 on the BSE today.

Wipro climbs over 7%  as Board to consider buyback 

Shares of IT services major Wipro rose by over 7 per cent on Thursday after the company said its Board will consider a buyback plan on October 13.

The stock gained 9 per cent intraday to Rs 367.75 -- its 52-week high -- on the BSE. The stock closed at Rs 359.45, up by 24.20, or 7.22%, at Rs 359.45

At the NSE, it jumped to a 52-week high of Rs 367.75, before settling at at Rs 359.90, up by 7.35% over its previous close.

Wipro to consider proposal to buyback shares

 

 

Published on October 08, 2020

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor