▲ Nifty: 11,503 (+0.76%) ▲ Sensex: 38,973 (+0.71%)
IT stocks not only drove the markets up today, but also helped in maintaining the upward momentum of the indices. Meanwhile, banking stocks witnessed some intraday selling after a strong opening. The market was broadly positive with 29 of the Nifty50 stocks ending the day with gains.
Here are the top stories of the day.
TCS peaks on buyback & hopes of strong Q2
TCS, India’s largest IT company, was on a roll today. In its upcoming board meeting (on 7 October), the management will consider a buyback program and a second interim dividend. The market expects IT companies to deliver strong quarterly results, especially after HCL Tech revised its Q2 revenue guidance upward. TCS gained 7.5% today and surpassed the ₹10 lakh crore market-cap milestone for the first time. Additionally, investors were upbeat on most IT sector stocks after a US district court blocked President Trump’s ban on H1B and other work visas. The Nifty IT index was up 3.4%. IT majors Wipro (+7%), Infosys (+2.9%) and Tech Mahindra (+2.7%) were among top gainers in the Nifty50.
Hatsun Agro rises on bonus issue & capital raising
Hatsun Agro, India’s largest private sector dairy company, announced plans to issue bonus shares and raise capital through private placement of equity shares. The company’s shares soared 7.4%, today, and witnessed higher than usual trading volumes, indicating strong buying interest. Since the March 2020 lows, the company’s shares have gained nearly 120%. Further, there has been a long-standing demand by the dairy industry for reducing GST on ghee and milk fat from 12% to 5%. Any development on this front could trigger further investor interest in the sector.
ITI & Solar Industries surge on orders from MoD
ITI Limited, the state-run telecom and defence equipment manufacturer, announced that it has signed a contract worth ₹7,796 crore to deploy and maintain a secured communication network across India, for the Indian Army. The company’s shares rose as high as 7.5% intraday. Similarly, Solar Industries, one of the largest explosives manufacturers in the country, gained nearly 7.7% intraday after receiving an order to supply 10 lakh pieces of hand grenade to the Ministry of Defence. The contract, which is valued at ₹409 crore, is expected to be completed in two years. Defence-sector stocks are catching investors’ attention of late. The ‘Vocal for Local’ initiative with an import ban on defence items and the bumper subscription (157 times) for the IPO of defence PSU Mazagon Docks point in that direction.
Closing bell
Asian and European markets were up today on news of President Trump’s improving health. Meanwhile, in India, the Supreme Court has deferred hearing on waiver of interest to 13 October (the decision was expected today). The India VIX jumped over 7% today, indicating expectations of increased volatility in the coming days.