Thursday, January 21, 2021

Shares end at record highs as IT stocks rally


Indian shares closed at all-time highs on Monday on the prospects of strong quarterly earnings from software outsourcers this week following an upbeat outlook from Tata Consultancy Services, the country’s top IT services exporter. The blue-chip NSE Nifty 50 index rose 0.96% to 14,484 and the benchmark S&P BSE Sensex climbed 1% to 49,269.32. The Nifty IT index rose 3.3%, with TCS climbing 1.8% to hit a record high of Rs 3,230 after the company on Friday reported higher December-quarter profit.

“The expectations of results from blue-chips are very high. The global markets are good and liquidity is also coming. The sentiment is so solid that markets are not concerned about valuations. This (up)trend is looking difficult to break,” said Vinod Nair, head of research at Geojit Financial Services.

“Investors are not able to find a reason why they should not invest … We are advising clients to book profits, have a balanced portfolio and invest in high quality large cap stocks” Nair said.

Shares of D-Mart operator Avenue Supermarts rose 2.8% after the company reported a 16.4% jump in December-quarter profit over the weekend. IT major Infosys Ltd was the top boost to the Nifty 50 index, gaining 4.9%, while Wipro Ltd and HCL Technologies advanced 3.9% and 6.1%, respectively ahead of their earnings this week.

Tata Motors Ltd’s shares ended 11.4% higher, lifting the Nifty auto index up by 2.61% Shares of Burger King India Ltd fell 10%. The stock has fallen about 30% from a peak of 213.80, after a bumper listing in December. Meanwhile, world shares slipped from record highs on Monday as caution over rising coronavirus cases saw some profit-taking from investors.

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