BANGALORE, Sept 27 (Askume) – Indian shares rose to hit a record high on Friday after U.S. peer Accenture posted better-than-expected quarterly profit, leading to gains in IT stocks.
The benchmarks Nifty 50 (.NSEI) and BSE Sensex (.BSESN) opened flat but soon rose 0.2% to hit record highs of 26,254.05 and 85,935.31, respectively.
The benchmark index was on track for a third consecutive weekly gain, capping a strong year.
The index has risen for seven consecutive days since a sharp US interest rate cut last Wednesday, raising expectations of more foreign investment in emerging markets like India.
The IT company (.NIFTYIT), which is the second-heaviest among large companies and earns most of its revenue from U.S. clients, rose 3% and was on track for its best day in more than a month, while Accenture ( ACN.N ) reported better-than-expected quarterly earnings amid strong demand for its artificial intelligence services .
Market leaders Tata Consultancy Services (TCS.NS) , Infosys (INFY.NS) , Wipro (WIPR.NS) and HCLTech (HCLT.NS) rose between 1% and 1.5%.
Metal stocks (.NIFTYMET) also supported gains, rising 1.4% on higher global prices as Chinese officials promised stimulus measures to boost the country’s struggling economy.
Analysts said China’s growth prospects have boosted expectations of a recovery in global metal demand, which would reduce low-cost imports from countries such as India.
Metals companies Hindalco (HALC.NS) , Vedanta (VDAN.NS) , Tata Steel (TISC.NS) and JSW Steel (JSTL.NS) rose between 1.2% and 2.5%.
Indian index gains were limited by a 0.4% decline in most-weighted financials (.NIFTYFIN) , which fell after rising more than 1% in the previous two sessions.
“The banking and financial sector has performed well in recent weeks, but is witnessing a marginal decline due to excessive profit booking,” said Ajit Mishra, Senior Vice President (Research), Religare Broking.
Participants should maintain a “buy on dips” strategy especially in private banking companies and select NBFCs (non-banking financial companies).
(1 USD = 83.6210 Indian Rupees)
