Markets End Higher As IT Stocks Rebound, OMCs Drop

Updated: Wednesday, May 9, 2018, 15:31 [IST]

Benchmark indices ended the day higher, led by strong gains in IT stocks. The rally was despite a decision by US President Donald Trump to withdraw from the Iran nuclear deal.

This means sanctions on Iran could be restored, reducing crude exports from Iran and hence pressure on crude oil prices.

Markets End Higher As IT Stocks Rebound, OMCs Drop

The Sensex completely ignored the worries over the deal and ended the day higher by 103 points, while the Nifty was up 24 points. Mutual funds that have been flush with money have been heavily deploying into frontline stocks, propelling the rally of the last few days.

Infosys and TCS were the winners from the IT space, while Tata Motors topped the list of gainers from the Nifty, after its JLR UK unit posted a robust set of numbers. The stock ended the day with gains of near 3 per cent.

Strides Shasun rose 2 per cent in trade, after the company agreed with Apotex to merge their respective Australian business operations. Oil marketing companies were extremely weak in trade, following worries that crude oil would rally, after the nuclear deal fell through. HPCL, BPCL and Indian Oil ended the day lower, though they recovered remarkably from the days lows.

Shares of Arvind rose a huge 4 per cent, after the company's net profits beat consensus estimates by a distance. The stock ended the day at Rs 440 on the back of heavy volumes. Consolidated net profits at the company grew to Rs 109 crores, versus Rs 93.42 crores (year-on-year).

Meanwhile, most Asian markets ended the day higher, led by the Hong Kong's Hang Sang. The Japanese Nikkei ended lower as the Yen strengthened against the dollar.

Across Europe it was a day of modest gains, with the German DAX and the French CAC leading indices in the region. Indian markets are expected to be volatile ahead of the Karnataka elections.

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