Sensex Closes 304 Points Higher, Nifty Reclaims 11,800 As Markets Extend Rally To Sixth Day

Wipro, Cipla, TCS, UltraTech Cement and Infosys, ending between 3.01 per cent and 7.34 per cent higher, were the top gainers in the 50-scrip benchmark index.

Sensex Closes 304 Points Higher, Nifty Reclaims 11,800 As Markets Extend Rally To Sixth Day

HDFC Bank, Infosys and TCS were the biggest boosts to Sensex

Domestic stock markets registered sharp gains on Thursday, extending a recent rally to a sixth straight session, led by strong buying interest in IT stocks after Tata Consultancy Services announced a Rs 16,000-crore share buyback. The Sensex surged 589.93 points - or 1.48 per cent - to touch 40,468.88 at the strongest level of the day, crossing the 40,000 level for the first time since August 31 as global equities rose on optimism about further fiscal support to tackle COVID-19. The broader NSE Nifty 50 index climbed to as high as 11,905.70, up 166.85 points - or 1.42 per cent - from its previous close. 

The Sensex ended 303.72 points - or 0.76 per cent - higher at 40,182.67, and the Nifty settled at 11,834.60, up 95.75 points - or 0.82 per cent - from its previous close.

Wipro, Cipla, TCS, UltraTech Cement and Infosys, ending between 3.01 per cent and 7.34 per cent higher, were the top gainers in the 50-scrip benchmark index. 

On the other hand, GAIL, ONGC, ITC, Eicher Motors and Larsen & Toubro, ending between 0.88 per cent and 3.11 per cent lower, were the worst hit among 22 Nifty laggards.

HDFC Bank, Infosys and TCS were the biggest boosts to Sensex.

TCS shares closed 3.19 per cent higher at Rs 2,824.80 apiece on the BSE, having climbed to a record Rs 2,885 during the session, a day after the country's largest IT company announced a share buyback worth up to Rs 16,000 crore and reported a 6.66 per cent sequential rise in net profit in the July-September period. 

Newsbeep

Wipro shares climbed to a record Rs 367.75 during the session, before settling with a gain of 7.22 per cent for the day at Rs 359.45, after the IT major said its board will consider a stock repurchase plan on October 13.

TCS and Wipro led a rally in IT shares. The Nifty IT index - which tracks 10 stocks from the IT space including TCS, Infosys and Wipro - also registered a record high, and was the best performing sectoral gauge on the NSE. 

"The language from TCS was strong and they were quite vocal that things are pretty much good...that is driving IT stocks higher today," said Saurabh Jain, assistant vice president at SMC Global Securities. IT companies will do very well as they are able to clinch deals in many sectors, he said.

Shares in Future Retail finished 5.44 per cent lower after e-commerce major Amazon sent a legal notice to Future Group's promoters for entering a deal with billionaire Mukesh Ambani's Reliance Industries.