Robust Q4 earnings from IT major Infosys and positive macro data amid above normal monsoon projection lifted sentiment as benchmark indices BSE Sensex and NSE Nifty reclaimed their psychological levels of 25,800 and 7,900, respectively, on Monday.

The 30-share index closed 189.61 points, or 0.74 per cent, up at 25,816.36, while the 50-share index settled 64.25 points, or 0.82 per cent, up at 7,9,14.70. Nifty settled above 7,900 for the first time since January 1.

Sentiments remained up-beat after wholesale prices fell for a 17th straight month in March, declining by an annual 0.85 per cent, driven down by tumbling prices of oil and manufactured goods. Further, recent rate cut by the Reserve Bank and hopes of a good monsoon have strengthened investors’ sentiment. However, depreciation in Indian rupee coupled with weak Asian cues have capped the upside gains.

In the 50-share index, Infosys and Idea Cellular surged 5.50 per cent and 5.10 per cent respectively. BPCL, UltraTech Cements and Bharti Infratel gained 5.02 per cent, 4.04 per cent and 2.61 per cent, respectively.

On the other hand, Bank of Baroda, GAIL, ONGC, State Bank of India and Hero MotoCorp slid 3.18 per cent, 3.13 per cent, 2.91 per cent, 2.79 per cent and 2.79 per cent, respectively.

Sectorwise, BSE Realty index surged the most — 4.40 per cent, it was followed by BSE IT index (up 3.09 per cent), BSE TECk index (2.92 per cent), BSE Telecom index (up 2.45 per cent) and BSE Consumer Durables index (up 1.73 per cent). The BSE Bankex and BSE Auto index slipped 0.52 per cent and 0.27 per cent, respectively.

Vinod Nair, head of research, Geojit BNP Paribas Financial Services, said, “Market gained weight due to the fine start of the result season and the contraction in WPI inflation to -0.85 per cent has smoothened the way forward. The global market witnessed a correction as oil producers could not reach a consensus on output freeze. Going forward, the market sentiment will depend on the progressing Q4 results season.”

In the scrip specific development, Infosys shares surged after the IT major predicted strong revenue growth of 11.5-13.5 per cent in consent currency in the current fiscal. DCB Bank too rallied over 5 per cent on the BSE after the bank reported strong growth in net interest income and decline in gross and net non-performing assets for the quarter ended March 31, 2016.

Asian equity markets ended mostly lower on Monday, as oil prices tumbled after a summit of major oil producing nations in Doha failed to reach an agreement to freeze oil production. Some 18 oil-exporting nations, including OPEC members, had gathered in Doha, the capital of Qatar, over the weekend in an attempt to agree to stabilise output at January levels until October 2016.

 

Markets through the day

3.30 pm: The 30-share index closed 189.61 points, or 0.74 per cent, up at 25,816.36, while the 50-share index settled 64.25 points, or 0.82 per cent, up at 7,9,14.70.

3.17 pm: Sobha Ltd was trading 15 per cent up at Rs 315.60. Sensex was up 207.85 points at 25,834.

2.35 pm: Shares of JK Tyre were trading 1.58 per cent up at Rs 86.90. JK Tyre & Industries is reportedly aiming to achieve annual revenues of Rs 10,000 crore in FY17 following the completion of the Rs 2,200 crore acquisition which also gives it an entry into the two wheeler tyre segment. The company had revenue of Rs 7,800 crore in FY16. Sensex was up 201 points at 25,828. Nifty was trading 57.90 points up at 7,908.

2.06 pm: Next Mediaworks shares hit upper circuit on TV reports that Rakesh Jhunjhunwala has invested Rs 35 crore in the company’s subsidiary Next Radio. The share price of Next Mediaworks surged 19.88 per cent to Rs 20.50. READ MORE

1.37 pm: The 30-share index was trading 197.75 points up at 25,824.

12.53 pm: Shares of information technology (IT) were trading higher on the bourses after Infosys, India’s second-largest information technology (IT) services firm forecast strong revenue growth of 11.5 per cent-13.5 per cent in constant currency (CC) in the current fiscal (FY17). The BSE IT index was up 3.25 per cent at 11,649.

12.28 pm: Sensex was up 100 points at 25,726. WPI inflation in March stood at (-)0.85 per cent as against (-)0.91 per cent in February.

11.51 am: Tata Consultancy Services (TCS) shares fell as much as 3 per cent on Monday after a Wisconsin federal jury has slapped a $940 million penalty, including $700 million in punitive damages, on TCS for allegedly stealing healthcare software from an American company, Epic Systems. Shares of TCS were trading 1.63 per cent down at Rs 2,482.05. READ MORE

11.28 am: In the 50-share index, Mahindra & Mahindra, ICICI Bank, Maruti Suzuki, BHEL and Bajaj Auto were up between 4.48 per cent and 7.35 per cent. On the other hand, ZEEL, Infosys, HCL Technologies, Adani Ports and Bosch were down between 0.10 per cent and 0.85 per cent.

11.06 am: Infosys shares hit their new all-time high on Monday after the IT major reported better-than-expected results for the fourth quarter ended March 2014. READ MORE

10.33 am: Sensex was up 114.24 points, or 0.45 per cent, at 25,741.38. The 30-share index had gained 952.91 points in the past three straight sessions.

10.25 am: Suprajit Engineering shares surged as much as 14.47 per cent on Monday after the board approved scheme of amalgamation of Phoenix Lamps Limited, Noida, a subsidiary of the company with Suprajit Engineering.

10.17 am: Most of the Asian equity benchmarks were trading down in the early deals on Monday following the weak lead from Wall Street and on news that major oil producing nations failed to reach a deal in Doha during the weekend to freeze oil production. Meanwhile, Japanese stocks tumbled after a stronger yen hurt the outlook for corporate profits, while risk appetites were hurt by earthquakes battering the southern island of Kyushu. Among the other Asian markets, Shanghai, Hong Kong, South Korea, Taiwan, Singapore, and Malaysia were also lower. Bucking the trend, Indonesia was in positive territory.

10.12 am: Suzlon Energy has repaid in cash foreign currency convertible bonds worth Rs 28.8 million in principal along with 8.7 per cent redemption premium for bonds maturing this month. Shares of Suzlon Energy were trading 2.81 per cent up at Rs 14.99. Sensex was up 81.40 points, or 0.32 per cent, up at 25,708.15.

9.45 am: The rupee depreciated 6 paise to 66.70 against the US currency in early trade today at the Inter-bank Foreign Exchange due to increased demand for the dollar from importers.

9.33 am: Sensex was trading 70.80 points up 25703.64. DCB Bank’s fourth quarter net profit increased 10 per cent to Rs 70 crore from Rs 63 crore mainly due to demand for loans from small and medium enterprises and individuals to buy homes and agriculture linked loans. DCB Bank shares were trading 5.88 per cent up at Rs 88.20.

9.16 am: Infosys shares were trading 7.71 per cent up at Rs 1262.45. TCS was trading over 2 per cent in the early trade. A US grand jury has slapped two companies of India’s Tata group–Tata Consultancy Services(TCS) and Tata America International Corp–with a USD 940 million fine in a trade secret lawsuit filed against them.

9.15 am: Domestic equity indices opened on a firm note on Monday despite weak global cues. The BSE Sensex opened 206.41 points up at 25,833.16, while Nifty index opened 57.70 points up at 7,908.15. Infosys was trading over 6 per cent up at Rs 1,245.55.

8.41 am: Tumbling crude oil futures dragged down Asian shares on Monday after producers’ weekend talks failed to agree a plan to curb the global supply glut, and Tokyo shares dropped as investors assessed the impact of a devastating earthquake in southwestern Japan.

Major US stock benchmarks ended Friday with small losses but were up for the week. The Dow Jones industrial average fell 0.2 per cent to 17,897.46, the Standard & Poor’s 500 index lost 0.1 per cent to 2,080.73 and the Nasdaq composite index dipped 0.2 per cent to 4,938.22.

Back home, market benchmark Sensex surged by 481 points on Wednesday to 25,626.75 — its highest level in nearly three and a half months — led by gains in banking and auto stocks on forecast of an ‘above normal’ monsoon and positive macroeconomic data.

Infosys will remain in focus on Monday. The IT major on Friday reported 3.81 per cent quarter-on-quarter (qoq) rise in its consolidated net profit figures at Rs 3,597 crore for the quarter ended March 2016. Infosys registered net profit of Rs 3,465 crore in the sequential quarter ended December 2015 and Rs 3,097 crore in the same quarter last year.

Nirdosh Gaur, managing director and CEO, Moneypalm, said, “Infosys above expectation results will move stock prices up on Monday and we are expecting that stock will move up at least 3-5 per cent on Monday.”