Sensex closes 245 points higher as IT stocks rally

Mumbai: Both the benchmark S&P BSE Sensex and CNX Nifty continued to rally for the second consecutive session on Friday led by gains in IT stocks after global rival Accenture Plc raised its revenue forecast, while Reliance Industries Ltd (RIL) rose on bets it will roll out its telecom services in the next few months.

The 30-share Sensex closed 0.9%, or 245.27 points, higher at 27,371.84, while the National Stock Exchange’s broader barometer 50-share Nifty rose 0.81%, or 65.90 points, to end at 8,225.20 points.

Among gainers, ICICI Bank Ltd rose 2.95% to Rs.355.40, and Hindalco Industries Ltd, added 2.64% to Rs.157.65. Reliance Industries rose 2.26% to Rs.900.15.

Among losers, Bajaj Auto Ltd slipped 1.58% to Rs.2,466.30, Bharti Airtel Ltd shed 1.54% to Rs.342.85, while Hindustan Unilever Ltd fell 1.49% to Rs.754.65.

Among the S&P BSE sectoral indices, the IT index were top gainer, up 1.95%, while the FMCG index lost the most 0.92%.

Punj Lloyd Ltd rose 7.05% to Rs.37.95, after the company said in a notice to BSE that the Foreign Investment Promotion Board (FIPB) approved the company’s proposal for manufacturing equipment systems and associated assemblies for the defence sector.

Crompton Greaves Ltd rose 1.06% to Rs.180.45 after the Reserve Bank of India (RBI) allowed foreign institutional investors to invest up to 100% of the paid-up capital in the company.

Tyre stocks rose on the back of higher volumes. JK Tyre and Industries Ltd gained 9.60% to Rs.153, Apollo Tyres Ltd rose 2.51% to Rs.222.45 and Ceat Ltd advanced 0.75% to Rs.883.50.

Among IT shares, Oracle Financial Services Software Ltd climbed 2.77% to Rs.3,330.05, Tata Consultancy Services Ltd (TCS) 2.03% to Rs.2,508.95, Wipro Ltd 2.33% to Rs.550.45, Mindtree Ltd 2.33% to Rs.1,214, Infosys Ltd 1.81% to Rs.2,001.90 and HCL Technologies Ltd climbed 2.18% to Rs.1,586.80.

SpiceJet Ltd rose 19.70% to Rs.15.80 after news reports said that former promoter Ajay Singh and two blue-chip investors will be pumping in about Rs.1,200 crore to rescue the financially strapped airline.

Housing Development Fiance Corp. Ltd (HDFC) rose 1.55% to Rs.1,115.05 while HDFC Bank Ltd rose 0.72% to Rs.940.80 after news reports said that the bank is seeking approval from FIPB to raise Rs.10,000 crore through sale of shares.

Atul Auto Ltd rose 0.36% to Rs.605 after the Lok Sabha passed the Motor Vehicles Amendment Bill, 2014, on Thursday, paving the way for regularisation of e-rickshaws, banned by the high court in Delhi on safety grounds.

Since the beginning of this year, the Sensex has gained 29.2%, while foreign institutional investors have bought $16.58 billion from local equity markets and $26.01 billion from the debt market.

Investors will be watching the progress of Parliament’s winter session that ends on 23 December and the results of the five-phase elections of Jharkhand and Jammu and Kashmir Assembly to be announced the same day for further cues on the markets.