Sensex opens higher as tech stocks lead rally1 min read . Updated: 24 Oct 2019, 09:44 AM IST
- At 9.30 am, the Sensex rose 0.6% to 39276.27 points, while the Nifty gained 0.54% to 11666.90 points
- IT stocks were also trading higher. HCL Technologies gained 4% on the BSE
Mumbai: Indian markets opened 0.5% higher on Thursday led by gains in information technologies stocks. Investor sentiment also received a boost after early trends gave indications of Bhartiya Janata Party returning to power in Maharashtra and Haryana.
At 9.30 am, the Sensex rose 0.6% to 39,276.27 points, while the Nifty gained 0.54% to 11,666.90 points.
According to early trends, the BJP and its alliance is likely to get 114 seats in Maharashtra and 38 seats in Haryana.
US indices ended with gains as oil prices rallied. Energy stocks led gainers. Asian indices opened in the black led by the Nikkei as Microsoft earnings saw Dow Jones futures rise. China will witness more traction as Yuan strength are likely to see good ETF flows with earnings being the catalyst.
IT stocks were also trading higher. HCL Technologies gained 4% after the company posted a 6.9% rise in its consolidated net profit to ₹2,711 crore for the September quarter, and raised its revenue growth forecast to 17% for 2019-20. The company announced a bonus share offer — one bonus share for every share held.
Among other tech stocks, Tech Mahindra rose 2%, TCS 0.5% and Infosys gained 0.4%.
Larsen & Toubro gained 1.6% after it reported a net profit growth of 13.3% to ₹2,527 crore on a year-on-year basis for the September 2019 quarter.
Meanwhile, of the 17 Nifty companies that have reported results so far, 10 have either met or exceeded analyst expectations. One did not have estimate.
Corporate earnings have been muted throughout the year and is expected to be tepid in the near-to-medium term as well. Earnings risks continue to be tilted to the downside on account of the underlying weak demand scenario, the uneven asset quality trends in financials and the deflationary trends in commodity prices, Motilal Oswal said in a note to its investors.
"Thus, for 2QFY20, we expect Nifty sales/EBITDA/PAT to decline by 2%/2%/8%. The reduction in the corporate tax rate has brought some cheer to earnings, but for FY20, it will largely limit the earnings downgrades rather than drive big upgrades. The silver lining to this somber backdrop is that the festive season demand has begun on a positive note. Thus while we are expecting 12% EPS growth in FY20 for Nifty, we are estimating strong revival of 28% growth in FY21," according to the report.