Markets extend gains for second session on fresh foreign fund inflows; IT stocks shine

People walk past the Bombay Stock Exchange (BSE) building, in Mumbai. File.
| Photo Credit: PTI

Benchmark stock indices Sensex and Nifty closed higher for a second straight day on January 5, following gains in IT, tech and capital goods shares amid fresh foreign capital inflows.

After slipping briefly during the late afternoon trade, the 30-share BSE Sensex made a quick recovery and jumped 178.58 points or 0.25% to settle at 72,026.15. During the day, it soared 308.91 points or 0.42% to 72,156.48.

The Nifty climbed 52.20 points or 0.24% to 21,710.80.

Among the Sensex firms, Larsen & Toubro, Tata Consultancy Services, Infosys, HCL Technologies, Hindustan Unilever, Axis Bank, ICICI Bank and Wipro were the major gainers.

Nestle India, Asian Paints, JSW Steel, Kotak Mahindra Bank and HDFC Bank were among the losers.

The services sector growth in India rose to a three-month high in December supported by favourable economic conditions and positive demand trends, a monthly survey said on Friday.

The seasonally adjusted HSBC India Services PMI Business Activity Index rose from 56.9 in November to 59 in December, highlighting a sharp increase in output that was the most pronounced since September.

On Thursday, the BSE benchmark rose 490.97 points or 0.69% to settle at 71,847.57, and the Nifty surged 141.25 points or 0.66% to 21,658.60.

In Asian markets, Tokyo settled in the positive territory while Seoul, Shanghai and Hong Kong ended lower.

European markets were trading with losses. The U.S. markets ended mostly lower on Thursday.

Meanwhile, global oil benchmark Brent crude climbed 0.94% to $78.32 a barrel.

Foreign Institutional Investors (FIIs) bought equities worth ₹1,513.41 crore on Thursday, according to exchange data.