Thanks to strong buying in IT majors Infosys, Tata Consultancy Services and Wipro and pharma stock Sun Pharmaceutical Industries, the key Indian stock indices Sensex and the Nifty50 rallied higher this morning, shrugging off a sluggish start.
However, with a few front line stocks facing stiff resistance at higher levels, the market pared some gains subsequently.
The Sensex, which rose to 28,305.55, gaining about 150 points, is currently up 113.82 points or 0.4% at 28,269.38. The Nifty50 of the National Stock Exchange is up 34.50 points or 0.4% at 8759.20.
IT bellwether Infosys is up 2.5%. Tata Consultancy Services is up 1.5% after the company said that its board of directors will meet on February 20 to consider a proposal to buyback shares. Wipro is trading 1.2% up. HCL Technologies and Tech Mahindra are both higher by about 1%. MindTree and KPIT Technologies are also trading firm.
State Bank of India is up more than 1.5% after the Cabinet approved the proposed merger of State Bank of India and its five subsidiaries. The merged entity will then be among the top fifty banks in the world. State Bank of Mysore, State Bank of Travancore and State Bank of Bikaner & Jaipur are up more than 6%. Shares of other two banks, State Bank of Hyderabad and State Bank of Patiala are not listed on the bourss.
Sun Pharmaceutical Industries is trading 2.75% up. Among other gainers in the pharma space, Aurobindo Pharma is up 1.6%, Divi's Laboratories is rising 1.4% and Cipla is up 1.2%, while Piramal Enterprises and Cadila Healthcare are up 0.7%. Lupin, Dr Reddy's Laboratories, GlaxoSmithKline Pharmaceuticals and Glenmark Pharmaceuticals are slightly weak.
Gammon India Limited shares are up sharply after the company said its net loss for the December quarter narrowed to Rs 20.53 crore against Rs 119.06 crore a year ago.
IDBI Bank is up marginally. Kerala State Cooperatives Consumers' Federation (Consumerfed) has reportedly tied up with IDBI Bank to facilitate cashless purchases for its consumers. In this regard, more than 300 machines have already been installed and a special IDBI Bank team was deputed to plan and execute the scheme.
Phoenix Mills is up 3.2% after the company said that its wholly owned subsidiary Palladium Constructions has acquired the entire equity shareholding of Leine River and Fuhse River in Gangetic Hotels (GHPL), a subsidiary of the company, aggregating to 39.15% on February 15, 2017.