Mumbai: Indian shares snapped a 4-day losing streak and rose 0.5% on Wednesday as export-led outsourcers Tata Consultancy Services and Infosys Technologies hit all-time high on improving prospects.
Expectations for robust quarterly earnings helped pull up metals such as aluminium maker Hindalco that gained 2.6% and Tata Steel, the world’s eighth-largest steel maker, which rose 2.2%.
Traders said Infosys set the trend for the session, a day after the second-largest software exporter raised its annual sales forecast as big financial services clients boost orders in an improving global economy.
Shares in Tata Consultancy, the top outsourcer, hit a record high of Rs796, up 6.3%, while Infosys scaled a new peak at Rs2,700.10, up 4.4%.
Third-ranked Wipro Ltd rose as high as Rs718.50, its highest level since April 2000, and ended up 3%.
“The decision-making freeze among customers in the past six quarters is giving way to an urgency to outsource,” CLSA said on Tuesday.
The brokerage has a “buy” rating on Infosys and “outperform” ratings on TCS and Wipro.
The 30-share BSE index Sensex closed up 0.5%, or 87.29 points, at 17,509.80. Half of its components advanced. The benchmark had dipped as much as 0.8% in early deals, as China’s monetary tightening hit Asian stocks.
“I don’t think there is any reason to be bearish on our market,” said D. D. Sharma, senior vice president at Anand Rathi Securities. “We are picking up fast. IIP (index of industrial production) numbers have been good, indicating good growth.”
Data on Tuesday had showed November industrial output grew at its fastest pace in two years and analysts said this would strengthen the case for the Reserve Bank of India (RBI) to tighten stance to temper inflation expectations.
Banks fell on concerns their December quarter results could be muted on sluggish loan growth and a sharp rise in bond yields last year could hit treasury income.
Top lender State Bank of India dropped 1.2% to Rs2,177.85 while rival ICICI Bank eased 0.3% to Rs839.90.
Non-ferrous metals producer Sterlite Industries declined 1.5% to Rs862.70. Base metals prices pared losses on Wednesday, having initially fallen on concerns growth and demand may moderate after China’s policy tightening.
In the broader market, gainers led losers in the ratio of 1.4:1 on volume of 648 million shares, higher than the previous week’s daily average of 625 million shares.
The 50-share NSE index Nifty closed 0.5% higher at 5,233.95.