Business Today

Sensex adds 190 points; Nifty ends above 7,900; Infosys stock top gainer

The headline indices were trading in a range after a meeting by major oil producers in Qatar fell apart on Sunday, leaving the world awash with unwanted crude oil which pushed the oil prices 5 per cent lower.

BT Online   New Delhi     Last Updated: April 20, 2016  | 09:03 IST
Sensex cuts gains, Nifty hovers around 7,850 after oil producers' meet in Doha fails
Market breadth turned negative with 21 of the 30 Sensex components trading in red. Photo: Reuters

Extending gains for a fourth consecutive session, the S&P BSE Sensex on Monday added 190 points, while broader CNX Nifty ended above its key 7,900-mark for the first time since January.

The headline indices rallied as investors cheered software services firm Infosys' upbeat revenue forecast and its third successive estimate-beating earnings on new client wins.

The 30-share index ended the day at 25,816, up 189.61 points, while broad-based 50-share index quoted 7,914, up 64.25 points at close.

Market breadth turned positive with 16 of the 30 Sensex components ending the day in green.

Investor sentiment has improved in the past few days after data showed easing inflation and a government forecast for an above-average monsoon rains sparked hopes for the economy and for more rate cuts by the central bank.

Mirroring the optimism, foreign investors bought a net $541.85 million worth of Indian shares so far this month, taking this year's inflow to $1.08 billion.

Infosys stock was the top gainer on both the benchmark indices and rallied 5.6 per cent after stellar March quarter performance and better-than-expected guidance for the fiscal year 2017.

"Infosys came out with better-than-expected results and that's why we are seeing some cheer in the market but this has to be followed up by TCS (Tata Consultancy Services)," said UR Bhat, managing director at Dalton Capital Advisors.

"If TCS doesn't come up with a better result, it would be a good excuse for the market to short."

Software services exporter Tata Consultancy Services will report its March-quarter earnings after market hours on Monday. The stock ended flat after medical software company Epic Systems won a $940 million US jury verdict against TCS in a trade secret case.

Drugmaker Alkem Laboratories fell 5 per cent after Germany's health regulator on Friday accused Alkem of fudging trial data.

ITC rose 1.33 per cent after country's biggest cigarette maker said it would resume production at its factories, two weeks after it decided to shutter its plants over the government's stringent new packaging rules.

Asian markets were severely battered with China's Shanghai Composite slipping 1.16 per cent and Hong Kong's Hang Seng index shedding 1.28 per cent. Japan's Nikkei fell 3.40 per cent as investors assessed the impact of a devastating earthquake in southwestern Japan.

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