The BSE Sensex ended 150 points higher yesterday, while the Nifty ended staying above 9,900 points
Infosys shares were up 3.8% after earlier rising as much as 4.6% on hopes that the appointment would provide some much needed stability to the company that has been reeling since the shock resignation of chief executive Vishal Sikka, who waged an acrimonious battle with the founders for months over alleged corporate governance lapses.
Analysts warned markets could see some volatility in the days ahead as monthly derivatives contracts are due to expire on Thursday. “There is some sort of relief rally in Infosys,” said Krish Subramanyam, co-head – equity adviser at Altamount Capital Management, adding “there will be some volatility (ahead) as this is the expiry week”.
As of Thursday’s close, Infosys shares had shed 10.6% since August 18, the day Sikka resigned. IT stocks led the gains. The Nifty IT index rose as much as 1.3% and was on track for a fourth straight session.
Among other gainers, Adani Enterprises rose as much as 9.3% in its biggest intraday percentage gain since June 6 after it said it plans to begin work on the controversial Carmichael coal project in Australia in October.
Nestle India touched a one-month high after it reassured investors that it would focus on driving volume growth through new product launches, and Credit Suisse upgraded it to “outperform”.
But Dr Reddy’s Laboratories dropped as much as 2.9% after it said that a law firm representing an investor filed a class action lawsuit in New Jersey against the company, its CEO and CFO.
Meanwhile the rupee yesterday strengthened past 63 mark to hit near three-week high against the US dollar, tracking gains in its Asian peers and local equity markets.
The rupee was trading at 63.88 a dollar, up 0.24% from its Thursday’s close of 64.03. The rupee opened at 63.92 a dollar and touched a high of 63.86, a level last seen on August 9. Markets were closed on Friday due to Ganesh Chaturthi.
Asian currencies were trading higher as dollar extended its decline after US Federal Reserve chair Janet Yellen dashed expectations on Friday that she would provide clues on monetary policy tightening.
South Korean won was up 0.72%, Taiwan dollar 0.32%, Malaysian ringgit 0.17%, Japanese yen 0.17%, Philippines peso 0.11%, China offshore 0.08% and China renminbi rose 0.06%. However, Hong Kong dollar was down 0.06%.
The 10-year bond yield was at 6.574% compared to its previous close of 6.538%. Bond yields and prices move in opposite directions.
So far this year, the rupee gained 6.27%, while foreign institutional investors (FIIs) bought $7.12bn and $19.50bn in equity and debt markets, respectively.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 92.501, down 0.26% from its previous close of 92.74.