Sensex ends higher; IT stocks surge
Indian shares edged up on Thursday with IT stocks leading the gains after Tata Consultancy Services Ltd said its board would consider a share buyback plan at a meeting next week.
Shares of TCS, the country`s biggest software services exporter, rose as much as 2.7 % to their highest since Sept 7, 2016, heading for their 10th session of gains in 12 this month.
"It (the share buyback news) will set a floor for the stock in the near term... May improve sentiment for other IT stocks but will be a short-term impact," said Dipen Shah, senior vice president and head of private client group research, Kotak Securities.
The Nifty IT index rose as much as 1.6 % to a more than five-month high with Infosys 1.7 % higher and Tech Mahindra up 1.6 %.
The broader NSE Nifty was up 0.15 % at8,737.90 as of 0529 GMT, while the benchmark BSE Sensex was 0.1 % higher at 28,178.43.
Among other leading gainers, State Bank of India climbed as much as 3 % after the federal cabinet on Wednesday approved its planned merger with five subsidiary banks.
Infosys ended 3 % higher. Sun Pharmaceutical industries gained 4.2 %.
Sun Pharmaceutical Industries Ltd and Tata Motors Ltd rose 2.70 % and 1.9 % respectively, after declining in the previous session on poor quarterly results.
Among losers, Dr.Reddy`s Laboratories Ltd fell as much as 3.9 % after a U.S. court found that the company`s anti-nausea drug, palonosetron hydrochlorid, infringed certain U.S. patents.
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