Sensex, Nifty eke out gains; IT shares show the way

·2-min read

Mumbai, Jul 14 (PTI) Equity gauges Sensex and Nifty firmed up gains on Wednesday as a result of intense buying mainly in IT shares amid expectations of robust quarterly earnings and favourable economic data.

At close, the BSE Sensex quoted 134.32 points or 0.25 per cent higher at 52,904.05 – recovering from its early losses to mark its second straight session of gains.

Likewise, the broader NSE Nifty advanced 41.60 points or 0.26 per cent to end at 15,853.95 – the third straight session of gains for the index.

On the Sensex chart, top three performers were IT firms, with Tech Mahindra gaining the most by rising 2.69 per cent, followed by HCL Tech and Infosys. Other notable winners were L&T, Tata Steel, ITC and TCS.

On the other hand, Maruti, HUL, Nestle India, Dr Reddy's and Reliance were among the laggards.

Sectorally, BSE IT, teck, capital goods, healthcare, and metal indices ended up to 2.25 per cent higher, while realty, oil and gas, energy and auto indices closed in the red.

Broader midcap and smallcap indices underperformed the benchmark, rising up to 0.24 per cent.

Post market hours, IT major Infosys announced its quarterly results. It posted a 22.7 per cent rise in net profit to Rs 5,195 crore for the April-June quarter of 2021-22, and raised its revenue growth outlook for the full fiscal.

Vinod Nair, Head of Research at Geojit Financial Services, said, 'Despite negative global signals, domestic indices trimmed its early losses and soared high supported by robust Q1FY22 result expectations on IT sector and favourable economic outcomes.” WPI inflation eased to 12.07 per cent for June against 12.94 per cent in May owing to softening crude oil and food prices, he added.

Key economic data reported across major western markets shown spiked inflation, forcing global markets to stay sidelined, Nair noted.

Elsewhere in Asia, bourses in Shanghai, Seoul, Hong Kong and Tokyo ended with losses.

Stock exchanges in Europe were also trading in the red in mid-session deals.

Meanwhile, international oil benchmark Brent crude declined 0.82 per cent to USD 75.86 per barrel.

On the forex market front, the rupee weakened by 10 paise to end at 74.59 against the US dollar on Wednesday. PTI ANS MKJ

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