1. IT, oil and gas stocks lead rise in Indian shares

IT, oil and gas stocks lead rise in Indian shares

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2 min read • Updated: February 6, 2024, 4:55 PM

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Summary

The IT index rose 2.92% after strong data from the U.S. services sector provided further evidence of strength in the world's largest economy, a key geography for India's software companies.

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BENGALURU, Feb 6 (Reuters) - Indian shares advanced on Tuesday, led by information technology stocks on prospects of a soft landing in the U.S. economy improving and supported by a sustained rally in oil marketing companies.

The NSE Nifty 50 index added 0.72% at 21,929.40, while the S&P BSE Sensex edged up 0.63% to 72,186.09.

The IT index rose 2.92% after strong data from the U.S. services sector provided further evidence of strength in the world's largest economy, a key geography for India's software companies.

Meanwhile, data showed foreign portfolio investors added IT stocks worth ₹4,485 crore ($540.01 million) on a net basis in January despite selling in other major sectors, indicating steady inflows into IT.

Tata Consultancy Services and HCLTech gained about 4% each and were among the top five Nifty 50 gainers.

The oil and gas index surged 2.67%, extending its rally to the third session. Bharat Petroleum Corporation , Hindustan Petroleum Corp and Indian Oil Corporation gained between 5.3% and 6.2%.

Since their quarterly results in the final two weeks of January, BPCL, HPCL and IOC have climbed between 17% and 35%.

Experts believe, in-line quarterly results and the government's focus on fiscal prudence are likely to support sentiment in Indian markets, although bouts of profit-booking cannot be ruled out due to elevated valuations.

Paytm rose about 3%, rebounding off a record low. It slumped about 42% in the previous three sessions after a regulatory crackdown on its payments bank.

Health insurance stocks jumped after a government panel recommended a reduction in goods and services tax rate on health and term insurance products. HDFC Life Insurance added 5.22% and was the second highest percentage gainer on Nifty 50.