Sensex soars over 400 points; TCS shares drop over 3%
Equity benchmark BSE Sensex rallied over 400 points on Friday following positive cues from global markets on hopes of a trade deal between the US and China.
The 30-share index was trading 414.38 points, or 1.09 per cent, higher at 38,294.78 at 09.40 am. Similarly, the broader NSE Nifty jumped 116.15 points, or 1.03 per cent, to 11,350.70.
Top gainers in the Sensex pack during early session included Vedanta, Tata Steel, ONGC, SBI, Kotak Bank, Tata Motors, ICICI Bank, HDFC twins and Infosys, rising up to 4 per cent.
On the other hand, TCS was the top laggard shedding up 3.76 per cent to Rs 1,929 on the BSE, after the largest software exporter on Thursday reported a tepid growth in net income for the September quarter at Rs 8,042 crore, and guided towards more challenges putting a big question mark over its ability to deliver the double-digit growth.
'TCS reported muted Q2 FY20 numbers, with 0.6 per cent quarter-on-quarter (QoQ) dollar revenue growth missing street's 2.1 per cent estimate and operating margin falling QoQ to 24 per cent in a seasonally strong quarter,' according to a report by Edelweiss Research.
The company had posted a net profit of Rs 7,901 crore in the year-ago period, TCS said in a BSE filing.
Tech Mahindra, Bharti Airtel, RIL and Sun Pharma were the other losers on the index, dropping up to 1 per cent.
In the previous session, the BSE barometer ended 297.55 points, or 0.78 per cent, lower at 37,880.40, and the Nifty fell 78.75 points, or 0.70 per cent, to close at 11,234.55.
Foreign institutional investors (FIIs) remained net sellers in the capital market, pulling out Rs 263.11 crore on Thursday, while domestic institutional investors bought shares worth Rs 502.67 crore, data available with stock exchange showed.
Market rallied in early session on Friday tracking gains in global markets after US President Donald Trump offered an positive assessment of US-China trade talks, traders said.
'We just completed a negotiation with China. We're doing very well. We're having another one tomorrow. I'm meeting with the vice-premier over at the White House,' Trump told reporters at the White House on Thursday.
Following the news, bourses in Shanghai, Hong Kong, Seoul and Tokyo were trading significantly higher in early trade. Stocks on Wall Street too ended on a positive note on Thursday.
Domestic investors are also awaiting factory output data and Infosys earnings, scheduled to be released later in the day.
The rupee, meanwhile, appreciated 15 paise against its previous close to trade at 70.92 in early session.
Brent futures, the global oil benchmark, rose 0.42 per cent to USD 59.35 per barrel.