The Sensex and the Nifty rode on TCS' gains, as the IT major saw a gain of over 5% to close at a record high post a stellar set of numbers for the April-June quarter.
The IT giant's market cap surged to Rs 7.6 lakh crore, which is Rs 2 lakh crore more than the combined market cap of Infosys, HCL Tech and Wipro.
Overall, gains seen in IT stocks, well supported by Reliance, helped the Nifty close with a gain of 1 point at 10,948 and the Sensex at 36,266, up 26 points.
The Sensex crossed its all-time closing high of 36,283 intra-day, but failed to hold on to the level. Deutsche Bank has a 2018-end target of 37,000 for Sensex and 11,400 for Nifty.
Broader markets underperformed, that led to a market breadth slip in favour of declines with the advance-decline ratio at 2:3. The Nifty Bank index slipped 91 points to close at 26,803 and Nifty Midcap index edged 71 points lower to 18,570.
IndusIand Bank did not have the same outing as TCS. The banking stock closed 1% lower as most brokerages are concerned with NII growth coming in at the lower range.
Some concerns are also seen on net interest margin front. For TCS, brokerages find it to be well placed for double-digit revenue growth in FY19. Jefferies raised its target to Rs 2,140 from Rs 1,600 per share.
The Indian market failed to hold on to gains as cues from global markets remained weak after newly announced trade tariffs on Chinese goods of $200 billion by the Trump administration.
In the futures market, Put options of 10,800, 10,900 and 10,700 saw an addition of 3-9 lakh shares in the open interest with premiums moving higher by 2-6%. Amongst call options, 10,800 saw 2 lakh shares being shed in the open interest with premium slipping 2%. Nifty July Futures closed with a discount of 11 points against a premium of 1 point on Tuesday.
On the global front, Asian markets closed steeply lower, with most major indices tumbling following the release of a list of an additional $200 billion in Chinese goods on which the U.S. is considering imposing tariffs.
The goods on the U.S. government's list would be subject to 10%. China markets were the worst hit, with the Shanghai composite sinking 1.8% to close at 2,777. The index had closed higher for its third consecutive session on Tuesday after a recent bout of weakness took the benchmark into bear market territory — referring to a fall of at least 20% from recent highs — where it currently remains in.
The smaller Shenzhen composite tumbled 2% at the close. Hong Kong's Hang Seng Index fell 1.3%, moderating somewhat after earlier losing more than 2%. Meanwhile, Japan's Nikkei 225 declined 1.2% to close at 21,932 as trade-sensitive stocks, such as automakers, dropped: Honda Motor was down 1% & Nissan dropped 2%.
Most other sectors traded lower with losses in the afternoon. The Kospi edged down by 0.6% as South Korean exporters took a hit amid broad-based declines. Hyundai Motor declined 1.6% and tech heavyweight Samsung Electronics lost 0.6%.