Sensex rallies by 465 points as technology stocks, RIL surgehttps://indianexpress.com/article/business/market/sensex-rallies-by-465-points-as-technology-stocks-ril-surge-5540309/

Sensex rallies by 465 points as technology stocks, RIL surge

The rupee, however, declined by 13 paise to close at one-month low of 71.05 against the US dollar amid strengthening of the US dollar and surging crude oil prices.

Led by tech stocks and Reliance Industries, the benchmark Sensex on Tuesday soared by 465 points on better revenue outlook for tech companies and the decline in consumer inflation. The rupee, however, declined by 13 paise to close at one-month low of 71.05 against the US dollar amid strengthening of the US dollar and surging crude oil prices.

With the markets expecting a easy monetary policy by the Reserve Bank in February, the S&P BSE Sensex ended at 36,318.33, up 465 points or 1.3 per cent, while the broader Nifty50 index settled at 10,887, up 149 points or 1.4 per cent. The Nifty IT index was the top gainer of the day, jumping 3.1 per cent led by a sharp rise in stock prices of Wipro, Infosys and TCS.

Vinod Nair, head of research, Geojit Financial Services, said, “The market rally was supported by tax cut plan in China and ease in domestic CPI inflation to 2.19 per cent in December. The fall in 10 year yield amid moderation in inflation will provide room for the RBI to ease monetary policy. The Nifty IT index outperformed led by revised revenue outlook. FIIs remained in the selling mode due to global growth concern which will make investors stay cautious in the market.”

Infosys rose 3.66 per cent on the BSE, extending its 2.5 per cent gain in the previous session, after the software services firm increased FY19 constant currency (CC) revenue growth guidance to 8.5-9 per cent from 6-8 per cent earlier. Wipro jumped 5.6 per cent after the company announced that its board will consider bonus issue of shares in its meeting on January 17-18, 2019. TCS gained 2.74 per cent.

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Reliance Industries soared by 3.02 per cent. According to Sameet Chavan, chief analyst, Angel Broking, global markets were cheerful in the morning and hence, the situation was ideal for Indian markets to have a head-start in the opening session. “Today was undoubtedly the best day so far of the new calendar year. Firstly, the market had a good trended move throughout the day and importantly, the market finally broke out from the recent congestion zone in the upward direction.”

Asian stocks rose on Tuesday, supported by a rally in Chinese shares amid hopes for government stimulus, while sterling braced for the vote in parliament over the British government’s plan to exit the European Union.

V K Sharma, head of Capital Markets Strategy, HDFC Securities, said, “The rupee has become the worst performer among Asian currencies for the current year till date. Foreign fund outflow and rise in crude oil prices have been the prime reasons for the recent weakness.” Retail inflation fell to 18-month low of 2.19 per cent in December on account of lower food prices. However, core inflation continues to remain high at 5.7 per cent, mainly on account of higher education and healthcare costs, Sharma said.