A man walks past a new brand identity for Nifty Indices inside the National Stock Exchange (NSE) building in Mumbai, India, May 28, 2019.REUTERS/Francis Mascarenhas/File Photo Acquire Licensing Rights
BENGALURU, July 20 (Reuters) – Indian shares advanced on Thursday as an uptick in Reliance Industries and broad sectoral gains overpowered a slide in information technology (IT) stocks.
The Nifty 50 (.NSEI) index closed 0.74% higher at 19,979.15, while the S&P BSE Sensex (.BSESN) gained 0.71% to 67,571.90. Both the indexes recovered from a lacklustre start and hit new all-time highs for the fifth session in a row, with the Nifty 50 closing just below the 20,000 mark.
Index heavyweight Reliance Industries (RELI.NS) gained 1.54%, after a new price discovery post its demerger with Jio Financial Services. The discovered price for Jio Financial Services was higher than Street estimates of 160-190 rupees.
IT stocks (.NIFTYIT) were an exception, shedding 0.66%. The index, which rose sharply after data showed a moderation in U.S. inflation last week, closed flat in the previous session.
IT firms earn a significant share of their revenue from the U.S. and Europe. Infosys (INFY.NS) was the top Nifty 50 loser, ahead of its June-quarter earnings later in the day.
The rally continued in broader markets as well, with the midcap index (.NIFMDCP100) hitting a fresh record high and the smallcaps (.NIFSMCP100) hovering around a 52-week high, respectively.
"The euphoria in the markets will probably continue despite stretched valuations," said Mayuresh Joshi, head of equity research at William O'Neil and Company. "Foreign inflows will likely power the markets further, aided by hopes of a soft-landing for the U.S. economy and concerns over China's recovery."
Asian and European markets gained on improved sentiment across global equities, following a surprise moderation in UK inflation.
Among individual stocks, shares of ITC (ITC.NS) jumped 2.78% and hit a fresh record high on a report that the company is likely to announce demerger of its hotels business in August.
Dr Reddy's Laboratories (REDY.NS) gained 2% after the U.S. FDA concluded its inspection at the drug maker's facility in Andhra Pradesh with zero observations.
Reporting by Bharath Rajeswaran in Bengaluru; Editing by Sonia Cheema and Dhanya Ann Thoppil
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Reliance leads gains in Indian shares; Nifty 50 inches towards 20000 – Reuters India
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