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Sensex rises nearly 400 pts and Nifty50 crosses 16,250 led by financial and IT shares — all eyes on TCS

Sensex rises nearly 400 pts and Nifty50 crosses 16,250 led by financial and IT shares — all eyes on TCS

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By Sandeep Singh   IST (Updated)

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The Sensex and the Nifty50 began the last session of the week in the green, as investors awaited the onset of the corporate earnings season with TCS due to report its financial results later in the day.

Indian equity benchmarks began Friday's session in the green, led by gains in financial, IT and oil & gas shares. The focus shifted to the onset of the corporate earnings season, with TCS set to report its financial results for the April-June period later in the day.
The Sensex rose as much as 448.7 points or 0.8 percent to 54,627.1 within the first few minutes of trade, and the Nifty50 climbed to as high as 16,275.5, up 142.6 points or 0.9 percent from its previous close.
Barring Dr Reddy's and Asian Paints, which slipped up to half a percent, all stocks in the Nifty50 basket opened higher.
ICICI Bank, Larsen & Toubro, Infosys, Axis Bank and HDFC Bank were the biggest contributors to the gain in both headline indices in early deals.
Financial and IT indices were among the top gainers on NSE.
"The rally is driven partly by expectations that given the steady decline in commodity prices, inflation will start to show a declining trend enabling central banks to go a bit slow on hiking rates, and partly by short covering," said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
"It is quite probable that central banks may not tighten policy as much as the markets feared earlier," he said.
TCS shares gained by as much as Rs 13.3 or 0.4 percent to Rs 3,300.3 apiece on BSE in early deals. Analysts polled by CNBC-TV18 expect the IT giant to report a 1.2 percent sequential decline in net profit for the April-June period.
Overall market breadth was in favour of the bulls, as  1,299 stocks rose and 642 fell on NSE.
Global markets
Equities across the world rose following a fourth back-to-back rise in the S&P 500 and Nasdaq Composite overnight, after the Fed hinted at a more tempered program of interest rate hikes.
MSCI's broadest index of Asia Pacific shares outside Japan was up 0.4 percent at the last count. Japan's Nikkei rose 0.7 percent.
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