The total market value of all the companies listed on BSE soared to lifetime high of over Rs 117 lakh crore today on the back of stock market rally. The market capitalisation (m-cap) of BSE-listed companies zoomed to Rs 117,27,922 crore ($1.7 trillion). The BSE benchmark Sensex surged 192.83 points to close at nearly five-month high of 28,661.58. Of the 30-share Sensex pack, 23 scrips ended higher led by TCS and Tata Steel.
“Market strength is expanding led by positive undercurrents from IT, pharma and metals sector. Even though valuation is at a premium, the market is not concerned but rather is accommodating to positive news from stocks and sector specific events,” said Vinod Nair, Head of Research, Geojit Financial Services Ltd.
As many as 1,709 stocks advanced on BSE today, while 1,132 declined and 198 remained unchanged. Besides, 128 stocks hit their 52-week high.
“Though earnings buzz is over, buy back in IT space and expectation of turn around in metal-infra space kept indices north bound,” said Anand James, Chief Market Strategist, Geojit Financial Services Ltd.
Sensex soars 193 points; TCS zooms on share buyback
Benchmark Sensex surged 193 points to end near five-month highs today as IT counters rallied after bellwether TCS announced a Rs 16,000-crore share buyback. Telecom and metal shares also witnessed robust buying while higher global cues and foreign fund inflows supported the momentum. TCS emerged as the top performer in the 30-share Sensex pack, after the company said its board has approved a share buyback plan of up to Rs 16,000 crore. The buyback price has been set at Rs 2,850 per share. The stock ended the day at Rs 2506.50, up 4.08 per cent.
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Telecom shares were in demand after reports said Vodafone India and Aditya Birla Group firm Idea Cellular are likely to finalise their merger within a month, creating India’s largest telecom firm. The BSE Sensex, after opening a tad higher, quickly slipped into negative terrain to hit a low of 28,419.27 on profit-booking. But it staged a strong comeback to 28,696.53 before settling at 28,661.58, showing a rise of 192.83 points, or 0.68 per cent. This is its highest closing since September 23, 2016, when it had ended at 28,668.22. The gauge had gained 313.19 points in the previous two sessions.
In a similar fashion, the NSE Nifty-50 shuttled between 8,809.80 and 8,886.25, before closing 57.50 points, or 0.65 per cent higher at 8,879.20. “Barring the FMCG index, which traded flat, all other sectoral indices on the National Stock Exchange (NSE) traded in the green, with the metals index gaining 2 per cent,” said Karthikraj Lakshmanan, Senior Fund Manager – Equities, BNP Paribas Mutual Fund.
Sentiment also got a boost after the GST Council at its meeting on Saturday approved a law to compensate states for any loss of revenue from implementation of the new national sales tax, brightening prospects for a timely rollout of the GST. Foreign portfolio investors (FPIs) net bought shares worth a whopping Rs 8,043.14 crore last Friday, provisional data showed.