Sensex rises by 314 points on rebound in IT stocks, US Fed rate cut hopes

Mumbai: Benchmark Sensex rose by 314 points and Nifty closed above 24,800 on Tuesday following a rebound in IT shares and hopes of a rate cut by the US Federal Reserve later this month.

Rising for the second day in a row, the 30-share BSE Sensex climbed 314.02 points or 0.39 per cent to settle at 81,101.32. During the day, it surged 394.07 points or 0.48 per cent to 81,181.37.

The 50-share NSE Nifty rose by 95.45 points or 0.39 per cent to 24,868.60, registering its fifth day of gain.

From the Sensex firms, Infosys jumped 5.03 per cent after India's second-largest IT services company said its board will consider a proposal for buyback of equity shares on September 11.

Tech Mahindra, Adani Ports, HCL Tech, Tata Consultancy Services and Bajaj Finserv were also among the gainers.

However, Trent, Eternal, UltraTech Cement and NTPC were among the laggards.

In Asian markets, South Korea's Kospi and Hong Kong's Hang Seng settled in positive territory while Japan's Nikkei 225 index and Shanghai's SSE Composite index ended lower.

European markets were trading on a mixed note. US markets ended higher on Monday.

"Markets closed higher on Tuesday, buoyed by strength in IT stocks following Infosys' announcement that its board will consider a share buyback on September 11. The news lifted sector sentiment," Hariprasad K, Research Analyst and Founder - Livelong Wealth, said.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 2,170.35 crore on Monday, while Domestic Institutional Investors (DIIs) bought stocks worth Rs 3,014.30 crore, according to exchange data.

Global oil benchmark Brent crude climbed 0.80 per cent to USD 66.55 a barrel.

On Monday, the Sensex edged higher by 76.54 points or 0.09 per cent to settle at 80,787.30, and the Nifty ended marginally higher by 32.15 points or 0.13 per cent at 24,773.15.