Stock markets on Wednesday maintained the record-setting dream run for the sixth straight session, taking the benchmark indices Sensex and Nifty to new closing highs with banking and IT counters leading the rally. The BSE Sensex ended the session at 36,161.64, up 21.66 points or 0.06 per cent and the NSE Nifty closed at 11,086, higher by 2.30 points or 0.02 per cent.
The market capitalisation — market value of listed shares — of Tata Consultancy Services crossed the Rs 6 lakh crore-mark on Wednesday, becoming the second company to achieve the milestone after Reliance Industries Ltd (RIL).
TCS market capitalisation stood at Rs 607,709.74 crore on Wednesday. Shares of the information technology (IT) major rose by 2.30 per cent to end at Rs 3,174.60 on BSE. Intra-day, it gained 4.88 per cent to Rs 3,254.80, its 52-week high. RIL’s market valuation had crossed the Rs 6 lakh crore mark on November 1 last year. Shares of RIL ended with a loss of 1.75 per cent at Rs 964.55 on Wednesday. After Reliance Industries and Tata Consultancy Services, HDFC Bank (Rs 5,08,822.40 crore) is in the third position.
However, most of the session’s gains for both the indices were wiped out as investors rushed to book profits ahead of F&O expiry tomorrow and also due to concerns over stretched valuations. Losses in some heavy-weights were balanced by banking counters amid expectations towards government’s fresh announcements towards recapitalisation plans.
Overall, investors’ sentiment remained upbeat as foreign funds have been pumping funds into Indian equities continuously for the last few sessions, helping the key indices breaking records after records.
“Market took a pause after touching a new high whereas some heavy weights witnessed volatility ahead of F&O (futures and options) expiry tomorrow. Earnings upgrade is more likely after seeing the initial set of results but rich valuation and upcoming economic events may interrupt aggressive buying. Meanwhile, investors are gradually shifting focus to defensive sectors like IT & pharma due to a revival in outlook and safe haven asset like gold,” said Vinod Nair, Head of Research, Geojit Financial Services.
Meanwhile, foreign portfolio investors (FPIs) continued their buying activity. They bought shares worth a net Rs 1,229.35 crore, while domestic institutional investors (DIIs) made purchases to the tune of Rs 169.03 crore on Tuesday, provisional data showed.
SBI rose 3.62 per cent, followed by Adani Ports at 2.46 per cent. However, telecom stocks tumbled up to 6.5 per cent after Reliance Jio decided to offer extra data on some plans, intensifying the tariff war in the sector. Bharti Airtel emerged worst performer in the Sensex kitty by losing 6.51 points after Reliance Jio decided to offer 500 MB extra data to its subscribers using 1GB and 1.5 GB per data packs. Sector-wise, the BSE IT index rose 1.53 per cent, followed by public sector undertakings (PSUs) 1.13 per cent.