News Column

IT shares clock smart gains, lift Sensex to near two-week high

July 18, 2014

PTI



Mumbai: Smart gains in IT stocks helped the benchmark Sensex Friday wash out early losses and end 80 points up at 25,641.56, nearly two-week highs, on good TCS earnings.



The market had initially showed weakness in line with fall in Asian stocks on concerns over geopolitical tension after news that Malaysian airlines Jet downed at the Ukraine-Russia border.



Buying in banking and capital goods also aided the Sensex to rebound and end in the positive terrain, brokers said. IT shares were in the limelight after country's largest software services exporter TCS announced better-than-expected quarter results late last evening, they added.



TCS was the second top gainer from the Sensex pack with a rise of 2.58 per cent. Wipro rose 1.83 per cent and Infosys 0.31 per cent.



Recently favoured two-tier stocks attracted profit booking by retail investors as their indices, BSE-Smallcap and BSE-Midcap, closed in the red, underperforming the Sensex, traders said.

The BSE 30-share barometer resumed stable and later moved down to a low of 25,441.24 on weak Asian cues.



It afterwards recovered gradually and touched a high of 25,713.40 before finishing at 25,641.56, a net gain of 80.40 points or 0.31 per cent. Previously, it had closed at 26,100.08 on July 7. The gauge has now gained over 634 points in four days.  For the week, it has gained 617.21 points.



"The week saw benchmark indices rise by about three per cent as concerns on crude price eased. Monsoon also progressed during the week, easing worries on inflation. Quarterly results, especially from IT majors, were above estimates and improved sentiments," said Dipen Shah, Head- Private Client Group Research, Kotak Securities.



The 50-issue NSE Nifty rose by 23.45 points, or 0.31 per cent, to end at two-week highs of 7,663.90.



Rupee falls

The rupee continued its downslide mostly throughout the week and yesterday fell 10 paise to log a one-month closing low of 60.28 against the greenback on dollar demand from importers and rising global risk aversion.



Heavy capital inflows in local equities, however, restricted the rupee fall, said forex brokers.

The dollar index, a gauge of six major global rivals, was almost stable with downward bias.

At the Interbank Foreign Exchange (Forex) market, the domestic unit commenced sharply lower at 60.41 a dollar from previous close of 60.18 and declined further to a low of 60.46 on initial weakness in local equities.



However, recovery in stocks and late dollar selling by exporters helped the rupee to recover to a high of 60.2450 before concluding at 60.28, still revealing a fall of 10 paise or 0.17 per cent.




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Source: Times of Oman


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