Sensex overcomes choppy start, ends 222 pts up; IT stocks skid

Mumbai, Apr 16 () Markets found firmer ground after two sessions of declines on Thursday, even as IT stocks tumbled after lacklustre results from Wipro underscored the economic challenges of the Covid-19 pandemic.

Shaking off an uncertain start, the 30-share BSE Sensex gained momentum in afternoon trade, before ending 222.80 points or 0.73 per cent higher at 30,602.61.

Similarly, the NSE Nifty climbed 67.50 points, or 0.76 per cent, to finish at 8,992.80.

NTPC was the top gainer in the Sensex pack, rallying 5.84 per cent, followed by ICICI Bank (4.52 per cent), Titan (3.87 per cent), L&T (3.65 per cent), SBI (3.46 per cent) and Sun Pharma (3.37 per cent).

On the other hand, HCL Tech led the laggards' list with a drop of 3.97 per cent, followed by Tech Mahindra, Kotak Bank, Infosys, Hero MotoCorp and HUL.

IT stocks came under selling pressure after tech major Wipro on Wednesday posted 6 per cent decline in net profit for the March quarter. It also said it will not provide revenue guidance for the current quarter due to business uncertainty caused by the Covid-19 pandemic.

Weak macroeconomic data and unabated depreciation in the rupee also capped buying momentum, traders said.

India's exports plunged by a record 34.57 per cent in March, hit by the coronavirus crisis.

The rupee tanked 43 paise on Thursday to settle at a fresh all-time low of 76.87 (provisional) against the US dollar.

"Markets were more circumspect today, while IT stocks were impacted due to the earnings commentary from Wipro. Wipro did not give any earnings guidance but warned of a hit on margins. The earnings for TCS will give a clearer picture on the impact on the IT sector and demand outlook from developed markets.

"Economic data from around the world remained grim and global markets also remained weak. Stock specific news and information with regards to normalization of business is expected to drive stock and sector specific action in the markets," said Vinod Nair, Head of Research at Geojit Financial Services.

BSE power, utilities, capital goods, oil and gas, finance and metal indices ended up to 2.85 per cent higher, while IT, teck, telecom and FMCG closed in the red.

Broader BSE midcap and smallcap indices rallied up to 1.71 per cent.

Meanwhile, global equities were mixed as investors assessed the tentative steps taken by various countries to resume economic activities.

Bourses in Shanghai ended on a positive note, while Hong Kong, Seoul and Tokyo closed in the red.

Stock exchanges in Europe were trading on a mixed note.

Brent crude futures, the global oil benchmark, rose 2.28 per cent to USD 28.32 per barrel.

The death toll due to Covid-19 rose to 414, while the number of cases in the country climbed to 12,380.

Global tally of the infections has crossed 20 lakh, with over 1.37 lakh deaths. ANS ABMABM