Indian equities regained momentum on Wednesday triggered by the buying in shares of heavyweight companies such as HDFC Bank, Infosys, ICICI Bank, Reliance Industries and HDFC. Indian stock markets closed higher in line with a firming global trend amid buying push from domestic investors. BSE Sensex ended 276 points up at 31,568.01 points and NSE Nifty settled above the 9,800-mark.
The blue-chip shares of HDFC Bank, ICICI Bank, Infosys, Reliance Industries, HDFC and State Bank of India were the major contributors in driving the benchmark Sensex higher. Collectively these stocks added about 192 points in the index upsurge of 276 points. Out of 51 listed scrips on Nifty 36 advanced whereas 15 declined, however, all of the sectoral indices ended in green with gains up to 3.44% except Nifty FMCG index which closed 0.03% lower.
Shares of Adani Ports (up 2.79%), Bharti Airtel (up 2.41%), Tata Steel (up 2.28%), Dr Reddy’s (up 2.25%), Infosys (up 1.98%), and Tata Motors (up 1.81%) were the lead gainers on the 30-share barometer. Infosys stock made a significant rally by climbing 1.98% to Rs 894.5 on value-buying amid speculation that Nandan Nilekani might return as the company’s head.
The Union Cabinet has reportedly given an in-principle approval for the merger of PSU banks, paving the way for the government’s ambitious plan for consolidation among state-run lenders to help them gain efficiency and scale. Public sector bank shares surged on the news, with the Nifty PSU Bank index gaining as much as 2.09% to 3,300.25 points. Allahabad Bank was the top gainer, up 4.29%, while Bank of India shares jumped 3.13%; Punjab National Bank rose 3.33%; Bank of Baroda gained 1%, and India’s largest lender SBI was up 1.75%.
Shares of India’s largest telecom operator advanced more than 2% on Wednesday after the company has added 6 lakh new users in July 2017, according to the data published by industry body COAI (Cellular Operators Association of India). The heavyweight stock of Bharti Airtel rose as much as 2.85% to the day’s high of Rs 433.7 and once was the top gainer on the benchmark Sensex today.
Shares of the real estate major DLF rose over 7% on Wednesday after the company said it will hold a board meeting on 25 August to decide on promoters’ proposal to sell their 40% stake in its rental arm to investment firm GIC in a deal estimated at around Rs 13,000 crore. The stock of the blue-chip company gained as much as 7.9% to the day’s high of Rs 189.15 on NSE.