Indian equities opened on a positive note on Monday tracking the Asian markets which were trading higher in the early trade. BSE Sensex gained 85 points to open at 31,609.93 points and NSE Nifty 50 advanced 27 points to open at 9,864.25 points. Within minutes of trading, the 30-share barometer gained over 100 points at 31,627.71 points while the broader Nifty 50 further added 44 points to trade at 9,881.9 points.
Shares of Infosys extend the Friday losses, tumbled 3% to Rs 895.9 on BSE, the stock fell as much as 10% on Friday after Vishal Sikka resigned from the post of CEO. The shares of heavyweight companies ICICI Bank, ITC, HDFC, HDFC Bank and Mahindra & Mahindra contributed the most in driving the benchmark Sensex up.
Stocks of ICICI Bank (up 1.79%), Mahindra & Mahindra (up 1.28%), Tata Steel (up 1.21%), ITC (up 0.84%), Sun Pharma (up 0.82%) were the lead gainers on BSE Sensex. Out of 51 components of NSE Nifty, only seven are trading in red and rest of 44 stocks were trading higher. All the sectoral indices of NSE advanced in the morning trade with gains up to 1.3%.
Private sector lender ICICI Bank announced to reduce the interest rate on savings accounts by 50 basis points to 3.5 per cent on deposits below Rs 50 lakh on Friday. The interest rate on savings bank accounts with deposits of Rs 50 lakh and above remains unchanged at 4 per cent, the bank said in a regulatory filing.
Infosys on Saturday announced a Rs 13,000 crore share buyback. According to media reports, Infosys would buy back up to 11,30,43,478 crore shares aggregating up to 4.92 per cent of the paid-up equity capital via tender route at a price of Rs 1,150, as per a BSE filing by Infosys.
Foreign portfolio investors (FPI) have pulled out more than Rs 7,300 crore from the equity markets this month so far as they flee to safe haven assets amid geopolitical tensions and some domestic concerns. However, FPIs have invested about Rs 9,364 crore in debt markets during this period.
US stocks ended down slightly after another volatile session on Friday following the latest White House shake-up and increased focus on the outlook for the Trump administration’s agenda and post-election rally. The Dow Jones Industrial Average fell 0.35% to close at 21,674.51 points, the S&P 500 had lost 0.18% to 2,425.55 points and the Nasdaq Composite had dropped 0.09% to 6,216.53 points respectively.