Sensex gains 111 points on heavy buying in IT stocks

The BSE benchmark index Sensex today rose by over 111 points on heavy buying in fundamentally strong stocks led by the IT pack after the country's largest software exporter Tata Consultancy Services posted better-than expected quarter earnings.

Marketmen also attributed the rise to a firming trend in global stock markets before reports on American consumer confidence and home sales.

The 30-share barometer, which had lost over 400 points in the past two sessions, rose by 110.61 points, or 0.65 per cent to 17,207.29, after touching the day's high of 17,247.53.

The 50-share National Stock Exchange index Nifty also moved up by 22.05 points, or 0.42 per cent to 5,222.65.

Brokers said sentiments turned better, particularly in information technology sector after the TCS posted 22.6 per cent growth in net profit for the fourth quarter of 2011-12 fiscal.

Besides, bargain buying at prevailing levels and covering up of short positions for approaching monthly expiry in the derivatives segment on Thursday, also supported the recovery, they said.

The IT sector index gained the most by adding 4.93 per cent to 5,562.12 points as TCS spurted 12.84 per cent to Rs 1,195.25 and Wipro gained 4.83 per cent to Rs 442.40.

Even Infosys surged by 1.58 per cent to Rs 2,348.55, reducing investor losses ever since announcing muted earnings on April 13.

Other stocks that helped push Sensex upwards include Hero MotoCorp, Hindalco Industries, Hindustan Lever, Sterlite Industries, Tata Power and Tata Steel.