Sensex edges higher, led by IT stocks

Last Updated: Thu, Feb 16, 2017 13:08 hrs
A broker trades on his computer terminal at a stock brokerage firm in Mumbai

Indian shares edged up on Thursday with IT stocks leading the gains after Tata Consultancy Services Ltd said its board would consider a share buyback plan at a meeting next week.

Shares of TCS, the country's biggest software services exporter, rose as much as 2.7 percent to their highest since Sept 7, 2016, heading for their 10th session of gains in 12 this month.

"It (the share buyback news) will set a floor for the stock in the near term... May improve sentiment for other IT stocks but will be a short-term impact," said Dipen Shah, senior vice president and head of private client group research, Kotak Securities.

The Nifty IT index rose as much as 1.6 percent to a more than five-month high with Infosys 1.7 percent higher and Tech Mahindra up 1.6 percent.

The broader NSE Nifty was up 0.15 percent at8,737.90 as of 0529 GMT, while the benchmark BSE Sensex was 0.1 percent higher at 28,178.43.

Among other leading gainers, State Bank of India climbed as much as 3 percent after the federal cabinet on Wednesday approved its planned merger with five subsidiary banks.

Sun Pharmaceutical Industries Ltd and Tata Motors Ltd rose 2.70 percent and 1.9 percent respectively, after declining in the previous session on poor quarterly results.

Among losers, Dr.Reddy's Laboratories Ltd fell as much as 3.9 percent after a U.S. court found that the company's anti-nausea drug, palonosetron hydrochlorid, infringed certain U.S. patents.

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