New Delhi | Jagran Business Desk: Indian shares extended gains to a second session on Monday, boosted by technology heavyweight Tata Consultancy Services as well as banking stocks, even as the country reported a steady rise in new cases of COVID-19.
The blue-chip NSE Nifty 50 index rose 0.72 per cent to 17,940.68 and the benchmark S&P BSE Sensex was up 0.77 per cent at 60,214 in opening trade. Both indexes are on track for their eighth session of gains in eleven.
Tata Consultancy Services jumped more than 3 per cent and was the top boost to the Nifty 50 after the software services firm said it will consider a share buyback proposal at its board meeting on January 12.
Nifty’s IT index was up 0.82 per cent, while the Nifty bank index was up 1.14 per cent.
The Sensex was primarily driven by FMCG, auto, IT and financial shares. ITC, Maruti, TCS, Kotak Bank and ICICI Bank were the prominent gainers. Of the Sensex constituents, 21 shares were trading in the green.
VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said, “The record-high inflation of 5 per cent in the Eurozone, following the inflation trends in the US, is emerging as a major challenge to central banks globally. There is now a clear possibility of three rate hikes by the Fed in 2022 with ECB and other leading central banks, including in emerging markets, shifting to tightening mode.”
The appreciation in US 10-year yield to 1.76 per cent and strengthening US dollar are indicative of the headwinds to equity markets, he added.
He further said that the Q3 results starting this week from the IT majors and HDFC Bank are likely to set the trend for the crucial IT and banking segments.
Elsewhere in Asia, the bourses were trading mixed ahead of the US inflation data.
Foreign institutional investors (FIIs) were net buyers in the capital market, as they bought shares worth Rs 496.27 crore on Friday, according to stock exchange data.
(With inputs from agencies)
Posted By: Subhasish Dutta