Free Press Journal

Sensex jumps 184pts, Infosys shares up 5 pc on robust earnings


Sensex BSE

Mumbai: Rising for the second session, the benchmark Sensex today jumped by about 184 points, driven by a sharp 5 per cent rally in Infosys shares after the IT major’s December quarter earnings beat market expectations.

The NSE Nifty also rose 49.90 points to end at 8,284.50.  Infosys, India’s second-largest IT firm, reported 13 per cent jump in consolidated net profit for the third quarter and maintained revenue outlook for the entire fiscal ending March.

Gains in Infosys (5.02 pc) and TCS (2.80 pc) shares contributed to over 140-points to Sensex’s 183.67 point rise.

The 30-share barometer resumed higher at 27,404.19 and shot up further to 27,507.67 on initial strong buying on the back of higher global cues. However, it declined to 27,119.63 during mid-day on profit-booking in select counters.

The Sensex, however, again picked up pace after Infosys earnings announcement and ended at 27,458.38, showing a gain of 183.67 points or 0.67 per cent.

In just two sessions, the Sensex has gained by 549.56 points or 2.04 per cent. It had lost 980 points in the receding three days.

“Market sentiments got a big boost with Infosys results. On top of all, IT major maintained its FY 2015 guidance of 7-9 per cent inspite of cross currency movements affecting it,” said Bonanza Portfolio, Associate Fund Manager, Hiren Dhakan.

Besides Infosys and TCS, notable gainers in the Sensex figure Hindustan Unilever, Reliance Industries, Tata Motors and ONGC. The state-run oil firm jumped nearly 3 per cent after a report that government is likely to exempt it and Oil India Ltd from payment of fuel subsidy during the rest of the fiscal due to steep decline in global oil rates.

Globally, Asian stock markets ended mixed after initial gains taking cues from a surge on Wall Street amid hopes for continued improvement in the US economy, while steady oil prices also provided support. European markets were also trading narrowly mixed after data showed Germany’s economy recovery is slowing.

Key indices in Hong Kong, Japan and South Korea ended higher by 0.18 per cent to 1.05 per cent while indices in China, Taiwan and Singapore moved down.

In Europe, German and French barometers moved up by 0.11 per cent to 0.13 per cent while the UK’s FTSE was down by 0.10 per cent.

Meanwhile, provisional data showed that Foreign Portfolio Investors sold shares worth a net Rs 466.78 crore yesterday.

In the bluechip index Sensex, 16 constituents ended higher while 14 counters declined.

In absolute terms, Sensex gainers include HUL (5.94 per cent), Infosys (5.02 per cent), Dr Reddy’s (3.21 per cent), TCS (2.80 per cent), ONGC (2.77 per cent), Cipla (2.33 per cent), Reliance Industries (2.09 per cent), Tata Motors (1.88 per cent) and Wipro (1.54 per cent).

Hindalco (1.51 per cent), Sun Pharma (1.49 per cent), Tata Steel (1.23 per cent) and HDFC Bank (1.06 per cent) also logged good gains.

Sensex laggards included the likes of NTPC that fell by 3.31 per cent, followed Bajaj Auto 2.80 per cent, ITC 1.59 per cent, ICICI Bank 1.48 per cent, Sesa Sterlite 1.36 per cent, Axis Bank 1.32 per cent, Bharti Airtel 1.32 per cent, BHEL 1.16 per cent and HDFC 1.01 per cent.

Among the S&P BSE sectoral indices IT rose by 3.51 per cent, followed by Teck 2.44 per cent, Healthcare 1.78 per cent, Oil&Gas 1.59 per cent and Consumer Durables 0.83 per cent. However, Realty index dropped 1.39 per cent after good gains on Thursday.

Total market breadth turned negative as 1,541 stocks ended with losses while 1,352 finished with gains and 116 ruled steady. Total turnover moved up further to Rs 3,284.91 crore from Rs 3,231.16 crore yesterday.
For the week, the BSE Sensex fell by 429.52 points.