Markets settle the day higher led by IT and pharma stocks

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Benchmark indices settled the day higher, with Sensex closing above 28,300 led by IT and pharma stocks. IT stocks ralled after TCS said its board would consider a share buyback plan at a meeting next week. The buyback, if approved in the board meeting, would be the company's first since its listing in 2004.


Asian markets surging to one-and-a-half year highs thanks to an extended rally on Wall Street and strong US data, also contributed to the gains.


The S&P BSE Sensex settled the day at 28,301, up 145 points, while the broader Nifty50 was ended at 8,778, up 53 points. In the broader market, the BSE Midcap and BSE Smallcap outperformed the frontline indices and rose 1.3% and 1.4%, respectively.

"Market had given a relief rally post this week's consolidation, supported by positive cues on IT & a rebound in Pharma stocks. Possibilities of buyback in IT sector and positive vibes from FDA is adding colours to Pharma sector. Both the sectors are available at cheap valuation compared to historical parameters, thus creating sense for value pick opportunity," said Vinod Nair, Head of Research, Geojit Financial Services in a note.


Sectors and Stocks


Shares of TCS rose as much as 2.7% to their highest since September 7, 2016, during intra-day trade, heading for their 10th session of gains in 12 this month. In past one year, the stock of the country’s largest software company has underperformed the market by gaining 6% as compared to 19.5% surge in the S&P BSE Sensex. The stock ended 1.4%


Sun Pharma was the biggest gainer among Sensex stocks, up over 4% after declining in the previous session on poor quarterly results. The company has received tentative approval from USFDA for Tadalafil tablets that are used to treat erectile dysfunction & arterial hypertension.  Maruti, Infosys and Tata Steel were other top movers in the index. 


Pharma (2.4%), Realty (2.1%), IT (2%) and Metals (1.9%) were the biggest sectoral gainers on BSE Sensex for the day while FMCG (down 1%) lost the most among indices.


Among other gainers, Tata Motors shares rebounded 2.21% on short covering. The stock fell nearly 14% in last two sessions after disappointing set of earnings.


SBI climbed as much as 3% but later pared gains to end 0.6% higher after the cabinet on Wednesday approved its planned merger with five subsidiary banks.


Cadila Healthcare surged over 17% after the company announced that USFDA cleared its Moraiya facility.


Among losers, ITC, Asian Paints, Adani Ports lost between 0.8%-2.5%.


Global Markets


Asian stocks inched to new 19-month highs on Thursday with thanks to an ongoing rally on Wall Street and bolstered by gains in Chinese stocks while the dollar came in for a bout of profit-taking after a recent bounce.


MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.2% to its highest since July 2015. It is up by a tenth this year thanks to more optimistic earnings expectations and an unwinding of bearish emerging market bets.


European shares steadied on Thursday after rising for the past seven sessions. The pan-European STOXX 600 index was little changed in percentage terms at 371.34 points after recent strong gains to a two-month high in the previous session.


Wall Street pushed relentlessly into record-high territory on Wednesday, with the S&P 500 notching a seven-session winning streak.


Hong Kong stocks climbed to a fresh five-month high and swelling demand from mainland investors thanks to Beijing's drive to tackle growing asset price bubbles and the market's relatively cheap valuations.


(With inputs from Reuters)

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