Indian markets hit record highs today
Indian markets hit record highs today

Sensex, Nifty close at record highs, Infosys leads gains in IT stocks

  • Infosys was the top gainer among Sensex stocks
  • Shares of Avenue Supermarts, which operates DMart stores, rose 2%

Indian markets ended at record highs today, led by gains in IT and metal stocks. The Sensex rose 258 points to a new closing high of 41,858. The Nifty settled 0.6% higher at 12,333, its first close above 12,333.

Among the Sensex 30 stocks, Infosys was the top gainer, rising 5%. India's second-biggest IT company, which announced its third-quarter earnings after market closing on Friday, said it found no evidence of financial misconduct by its executives following a investigation into whistleblower complaints. Infosys also delivered a Street-beating Q3 performance and also raised its revenue forecast for the year.

Clean chit in whistle-blower issue is key positive and removes overhang on the stock, Centrum Broking said in a note.

Among other IT stocks, HCL Tech, Tech Mahindra, Wipro each advanced over 1% while Tata Elxsi and NIIT Tech rose 5% and 3% respectively.

Sentiment was also lifted after index of industrial production (IIP) recorded a growth of 1.8% in November, having contracted for three months in a row, according to government data, which was released on Friday.

"It is a good sign for the economy as IIP turns positive after three months of contraction. From the consumption point of view, it is welcoming that the consumer non-durables has turned positive.However, consumer durables are still in the negative territory, contracting for the last six months," said Deepthi Mathew, economist at Geojit Financial Services.

Shares of Avenue Supermarts, which operates DMart stores, rose 2% after delivering a strong Q3. The retailer's revenue rose 23.9% year on year to 6,752 crore while net profit recorded a 53% growth at 394 crore.

Continuing their recent outperformance, midcap and smallcap stocks posted strong gains today. BSE midcap and smallcap indices rose 0.81% and 0.93% respectively. "We stick with our theme that 2020 will belong to the mid and the small cap stocks, as they vie for investor attention as the large caps consolidate," HDFC Securities said in a note.

(With Agency Inputs)

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