Sensex, Nifty gain by nearly one per cent; TCS gains by more than 7 per cent, Page Industries declines 4 per cent
After a long weekend, the domestic markets saw some volatility on Monday. Sensex gained by 276.65 points or by 0.71 per cent to close at 38,973.70 levels while Nifty rose by 86.40 points or 0.76 per cent to settle at 11,503.35 levels.
During Monday’s trading session, the indices erased some intraday gains but managed to close higher for the third consecutive trading session. Buying was seen in the stocks belonging to IT, metal, pharma, FMCG, and banking sectors whereas energy stocks witnessed selling pressure.
TCS announced that the board of directors will consider a proposal for the buyback of equity shares of the company, at its meeting to be held on October 7, 2020. Reacting to the positive announcement, the stock of TCS jumped by 7.30 per cent during today’s trading session. Analysts consider this to be positive news not only for the company but also for the entire IT sector as other big IT players may also follow this move.
Big IT companies who have large surplus cash on books can consider using it to reward their respective shareholders. On Monday, IT stocks traded higher with Wipro gaining by 6.73 per cent while stocks such as Subex, Intellect Design Arena, Ramco Systems, etc. locked in at their upper circuits of around 5 per cent each. IT stocks rallied after a federal judge temporarily blocked US President Donald Trump's ban on issuing work visas citing that such “a radical change in policy” does not serve the public interest.
Sensex gainers consisted of Tata Steel that went by 4.71 per cent, Sun Pharmaceutical Industries gained by 3.23 per cent, Infosys rose by 3 per cent, Tech Mahindra gained by 2.26 per cent, IndusInd Bank rose by 1.63 per cent, etc.
Sensex losers included Bajaj Finserv, which went down by 2.70 per cent, Bajaj Finance fell by 1.86 per cent, Bharti Airtel declined by 1.85 per cent, Bajaj Auto fell by 1.27 per cent, Power Grid fell by 1.15 per cent, ITC declined by 0.91 per cent, etc.
Amongst sectoral indices on BSE, the IT index was the biggest gainer, up by 4.06 per cent, followed by indices such as TECK and Metal, gaining by 3.23 per cent and 2.31 per cent, respectively. BSE Telecom Index was the biggest loser, down by 1.28 per cent. Meanwhile, BSE Small-Cap Index gained by 0.38 per cent whereas, BSE Mid-Cap Index declined by 0.18 per cent.