Mumbai: Markets snapped a two-day fall to end 0.65% higher on Tuesday, helped by better-than-expected earnings from the country’s leading software services exporter.
Sensex at closing
Tata Consultancy Services, which posted results post trading hours on Monday, saw its biggest single day gain in nearly three years after the company said it expects to outperform the sector outlook. It rose 12.2%.
The bullish performance also helped pull up rival Infosys Ltd shares which have fallen 16% since its earnings till Monday. Infosys shares pared losses and ended 1.7% up.
The IT index rose 4.37%, also helped by the sharp fall in the rupee, which hit a three-and-half month low.
The country’s main 30-share BSE index rose 0.65% to 17,207.29 points while the broader 50-share NSE index added 0.42% to be at 5,222.65 points.
“The gains were largely driven by IT stocks which jumped up strongly after TCS showed confidence in their growth prospects for FY13, and a weakened rupee helped,” said Rikesh Parikh, vice president-equities, Motilal Oswal Securities Ltd.
However, rollover in stocks remain at a three month low ahead of derivatives expiry on Thursday, he said, pointing to a bearish oulook.
Telecoms shares lost for a second successive day as sentiment remained dour as a regulatory proposal to increase the price of 2G spectrum continued to weigh on the sector.
Markets closed on Tuesday in the green, with IT giant TCS leading the way. Mint’s Krishna Merchant gives you the lowdown
Bharti Airtel Ltd, the biggest by subscriber base, was down 1.65% at 307.35 rupees.
Idea Cellular Ltd fell 4.2% and Reliance Communications Ltd shed 1.4%.
India’s telecoms regulator proposed a near tenfold increase in the price of 2G spectrum in a reissue of licences being stripped from mobile operators, drawing howls of protest from companies hoping to win them back.
State-run oil stocks witnessed some buying interest after local media reported that the government has agreed in-principle to allow diesel prices to be market-determined.
Analysts estimate a maximum Rs 3-5 hike in diesel prices this fiscal year. Bharat Petroleum Corp, HPCL and Indian Oil Corp ended between 1.6 -2% higher.
India’s competition watchdog imposed hefty penalties against agrichemical manufacturers, sparking fears similar action will follow regarding cement makers.
United Phosphorous fell 6.1%, while Excel Crop Care ended 4.4% lower after the Competition Commission of India imposed a penalty of 9% of the average of their standalone turnover over the past three years.
Cement companies also fell on fears of a similar adverse ruling.
ACC fell 2.4%, while Ambuja Cements lost 4.6%.