Indian markets edged higher for a third straight day on Monday, in line with Asian peers, as Tata Consultancy Services (TCS) boosted the indexes after reporting a record profit for the last quarter of the year, marking the onset of corporate results.
Broader Asian shares also rose to near nine-month highs, with sentiment supported by strong Chinese export and bank loan data, along with positive headlines on the Sino-US trade talks.
Both foreign and domestic institutional investors (FIIs and DIIs) were net-buyers, according to provisional data provided by stock exchanges. FIIs bought shares worth Rs 713 crore, while DIIs were net-buyers to the tune of Rs 581 crore, data showed.
TCS and smaller rival Infosys, who reported results for the final quarter of the 2018-19 financial year on Friday, had the biggest positive and negative impact on the benchmark indices. TCS, rose 4.8 per cent and made 100-point contribution to Sensex gains. On the other hand, Infosys fell 2.8 per cent and dragged the index lower by nearly 80 points.
TCS, India’s biggest software exporter, also posted its best revenue in 15 quarters on Friday, and said that the company’s most important market - banking, financial services and insurance segment (BFSI) - has a “fairly strong” outlook. Tata Motors climbed 7 percent to and led gains in percentage terms. Experts say markets will remain range bound due to election uncertainty.
Infosys shares marked their sharpest intraday drop since October 11 after it failed to impress investors with its operating margin forecast for fiscal 2020.
“Markets could spend some more time at current level before any major directional move. We advise investors to focus on the earning announcements and global markets for cues,” said Jayant Manglik, president - retail distribution, Religare Broking.