Sensex revisits 34,000 on IT gains

Key equity benchmark indices accelerated gains on Thursday, with benchmark Sensex surging past the crucial 34,000-mark on the back a sharp rally in IT stocks ahead of the Infosys earnings today. Local stocks maintained their upsurge for the sixth straight session, shrugging off the weak global markets sentiment that was hit by a fresh wave of geopolitical tensions. The current buoyancy in the markets is the longest winning streak since January 24.

The 30-share Sensex closed at 34,101.13, surging 160.69 points or up 0.47%. the highest closing since February 28 when it touched 34,184.04. During intra-day trade, the gauge went as high as 34,176.82. In the last six sessions, the index has gained 1,082.06 points. Though Sensex continued its north-bound journey, 14 out of 19 sectors ended weakly.

After moving between 10,395.70 and 10,469.85 in intra-day trade, the broader Nifty finally settled at 10,458.65, rising 41.50 points or 0.40% higher. The index also closed above the 50-day moving average. Of the 50 stocks, 23 scrips advanced while 27 declined.

“We have seen eight weeks of correction and only three weeks of rally. Nifty has corrected from 11,171 to 9,951 points,” said AK Prabhakar, head of research at IDBI Capital. “There was 37 days of fall and only 13 days of rally. So, it is too early to say we are back to bullish phase,” he added.

Meanwhile, the broader market was weak with both the BSE Midcap and Smallcap indices falling 0.13% and 0.27%, respectively.

Coming to the sectors, the BSE Information Technology was the star performer, rising 3.18%, as weak rupee buoyed sentiment for software exporters. Other sectoral gainers were BSE Teck (2.49%), BSE Bankex (0.35%), BSE Finance (0.23%) and BSE Capital Goods (0.19%). On the other hand, BSE Realty was the biggest loser plunging 1.82% followed by BSE Metal (-1.41%), BSE Telecom (-0.82%), BSE Healthcare (-0.73%) and BSE Basic Materials (-0.68%).

“Overall the market will continue to be volatile. I have earlier also said, the whole year will be full of volatility for the markets due to the global trade war and elections in India. This is the year of investment and not much of returns. People can expect good returns in 2019. The rupee is depreciating and it will continue,” said G Chokkalingam, founder and managing director of Equinomics Research and Advisory.

Ahead of its fourth-quarter earnings announcement on Friday, Infosys gained 3.4% to end at Rs 1,162.25 on BSE on analyst expectations that the software major would post a strong set of numbers.

TCS, Axis Bank, ICICI Bank and HDFC were the top performers in the Sensex pack, surging as much as 4.04%, while Dr Reddy's, Tata Steel, Adani Ports, State Bank of India and Bharti Airtel eased around 2%.

Among the Nifty constituents, HCL Technology, TCS, Infosys, Tech Mahindra and Axis Bank clocked smart gains, rising as much as 4.10%.

“The results of the fourth quarter will further help us to know what happens in the market,” Chokkalingam added.

As per the provisional data, foreign portfolio investors (FPI) purchased shares worth Rs 368.9 crore while domestic institutional investors (DII) sold shares worth Rs 615.81 crore on a net basis on Thursday.

Globally, Asian and European markets declined after Syria tensions and hawkish statements from the US Federal Reserve dented investors' sentiment. The US stocks declined overnight, as worries about geopolitical developments deflated the buying mood on the Wall Street.

In the Asian region, Hong Kong's Hang Seng fell 0.21%, Shanghai Composite Index declined 0.87% and Japan's Nikkei ended 0.12% lower. In Europe, Paris CAC fell 0.03%, while Frankfurt's DAX and London's FTSE traded flat in early trades.

IN LIMELIGHT

• In the last six sessions, BSE has gained 1,082.06 points
   
• BSE Information Technology was the star performer, rising 3.18%
   
• Infosys gained 3.4% on BSE ahead of earnings announcement