Following positive results posted by the IT giant Infosys, coupled with some positive news flow from the global markets, Indian markets have rallied for the entire week with the Sensex surging by 786 points in the last four trading sessions, while the S&P CNX Nifty has rose by 225.4 points. The market will remain close for trading on Friday on account of Mahavir Jayanti.
Amitabh Chakraborty, president-equity, Religare Securities said, The sentiments were positive for the entire week, especially after the Infosys results and also with inflation easing a bit, it is definitely a positive sign for the markets. As for Thursday, we saw some short covering in the IT and the realty stocks, which helped the markets to end positively. Earnings posted by Infosys is a positive indication for other tech companies and it has shown that the rupee appreciation and subprime crisis have not impacted its performance. The corporate earnings of Indian companies may remain intact, which is a positive sign.
Upward movement in IT stocks continued on Thursday, which started its rally right from the beginning of the week, taking its cue from the better-than-expected-results posted by Infosys. The BSE IT, BSE Realty, BSE Metal, and BSE Bankex all surged by more than 3% on Thursday.
The overall participation in the markets led the markets breadth to remain positive throughout the day, with 2,025 stocks advancing, as against 703 stocks, which declined, and 51 stocks remained unchanged at the BSE. Turnover at the SEs saw a jump on Thursday, as combined traded volumes at both the SEs rose to 119.21 crore, as against 103.63 crore on Wednesday. Volumes traded on the derivatives segment of the NSE saw a rise of 17% from 81.78 crore shares being traded on Wednesday to 95.72 crore shares traded on Thursday.