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Sensex closes 30 points higher, Nifty ends below 8,600; Infosys down 2% post Q2

The headline indices recovered from the previous session's multi-month lows, with financials leading the gains on prospects of further rate cuts after inflation cooled to a 13-month low in September.

BT Online   New Delhi     Last Updated: October 17, 2016  | 09:24 IST
Sensex closes 30 points higher, Nifty ends below 8,600; Infosys down 2% post Q2
Photo: Reuters

The S&P BSE Sensex on Friday settled the day 30 points higher, while the broader Nifty50 ended below its key support level of 8,600.

The headline indices recovered from the previous session's multi-month lows, with financials leading the gains on prospects of further rate cuts after inflation cooled to a 13-month low in September.

The 30-share index ended the day at 27,673, up 30.49 points, while the broad-based 50-share index quoted 8,583, up 10.05 points at close.

However, gains were limited as Infosys shares tumbled as much as 5.3 per cent to their lowest since July 20, 2015 after the country's second-largest IT services firm cut its fiscal-year revenue growth target for a second time in three months on an uncertain business outlook. The scrip settled the day 2.43 per cent lower.

"I would pencil-in another 25 basis point cut (in repo rate), if not in December then definitely in March, as inflation numbers have come down," told Ravi Sunder Muthukrishnan, head - strategic research group at ICICI Securities to Reuters.

India's consumer price index rose 4.31 per cent last month from a year earlier, its slowest pace since August 2015, helped by moderating food prices. This gives room for the central bank to cut interest rates again if needed.

Banking shares rose, with the Nifty PSU bank index gaining as much as 1.5 per cent. State Bank of India added 0.78 percent, while Punjab National Bank gained 0.76 per cent.

Among other gainers, Tata Consultancy Services rose as much as 2.4 per cent after the country's biggest software services exporter on Thursday posted an 8 per cent rise in its September-quarter profit, beating estimates.

(With inputs from Reuters)

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