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Sensex Surges 318 Points, Nifty Reclaims 10,500; TCS, Infosys Jump 3%
24 May 2018, 07:44 PM IST 
Thirty four stocks on the Nifty 50 ended in the positive zone
- The Nifty Bank index finished 1.3 per cent higher. SBI shares rose 2 per cent while Axis Bank finished 2.9 per cent higher. PNB and ICICI Bank rose 1.9 per cent each.
- Although the rupee recovered some ground against the US dollar on Thursday, it was still around 7 per cent lower against the greenback so far this year. The rupee had closed at an 18-month low against the American currency on Wednesday.
- A weaker rupee could translate into higher returns from the US market, the biggest source of revenue for IT companies.
- The Nifty IT - the NSE's sub-index for IT stocks - ended 2.3 per cent higher. Tech Mahindra rose 2 per cent and HCL Tech 1.9 per cent.
- "The expectations on earnings growth for IT companies was moderate and broadly there has been a positive surprise on this front," Prasanna Pathak, fund manager at Taurus Mutual Fund, told NDTV.
- "The current slide in the rupee vis-à-vis the US dollar has been a blessing in disguise for Indian IT majors as it makes their exports more competitive. In near to mid-term, it is expected that rupee will continue to remain week vis-à-vis the dollar. The tightening of interest rates in the US in the near future would continue to keep the dollar in a strong zone. Therefore, the rupee is expected to remain weak throughout 2018. It certainly seems that the Indian IT companies will be in a sweet spot," said Rahul Agarwal, Director Wealth Discovery/EZ Wealth.
- The Nifty Pharma index settled 1.7 per cent higher. Among pharma stocks, Divi's Laboratories closed 3.2 per cent higher, while Lupin and Dr Reddy's Laboratories rose 1 per cent each.
- However, selling witnessed in auto stocks limited upside in the BSE Sensex and NSE Nifty.
- Tata Motors declined 6.7 per cent. TVS Motor fell 4.1 per cent, and Bajaj Auto 1.5 per cent. Maruti Suzuki India closed 1 per cent lower. The Nifty Auto index settled at a loss of 1.6 per cent.
- Energy stocks also dropped. ONGC shares fell 4.4 per cent after news reports, citing sources, reported that the government may levy a windfall tax on oil producers to moderate spiralling retail prices of petrol and diesel. The Bombay Stock Exchange has sought a clarification from ONGC over this.
(With agency inputs)