Sensex gains 200 points, Nifty tests 10,650; HCL Tech down 3%

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NEW DELHI: Domestic equity benchmarks registered a positive opening on Friday, after three consecutive sessions of losses, thanks to a fall in global crude oil prices and rupee’s fresh rise against the US dollar.

A slight uptick in Asian peers amid speculation that the US Fed may go softer on rate hikes also influenced the sentiment.

However, concerns over US-China relation after the arrest of Huawei CFO loomed, capping the gains of the market.

Sensex jumped over 228 points in the opening deals, while Nifty crossed 10,650 as a fresh spell of buying emerged in most sectors.

However, market pared gains after bouts of selling emerged in IT and metal counters.

Around 9:25 am, the BSE Sensex was 120 points and 0.34 per cent up at 35,432, while the Nifty50 was 26 points or 0.25 per cent up at 10,627. The BSE Midcap and Smallcap indices were 0.43 per cent and 0.18 per cent up, respectively at that time.

Mahindra & Mahindra, NTPC, Maruti Suzuki, ITC and Hero MotoCorp were leading among the Sensex gainers.

Wipro, Axis Bank, Tata Steel, Coal India and Tata Consultancy Services were among the top drag on the Sensex index.

Among the sectoral indices, IT, metal, utilities and teck were trading in the red with losses up to half-a-percent.

Muthoot Finance, Century Plyboards, Vakrangee, Edelweiss Financial Services and Manappuram Finance were leading on the BSE.

On the contrary, IL&FS Transportation Networks, Magma Fincorp, HCL Technologies, Power Finance Corporation and GAIL were among the top losers.

Shares of HCL Tech plunged after International Business Machines (IBM) Corp said it will sell some of its software products business to HCL Technologies for $1.80 billion. The software products in scope represent a total addressable market of more than $50 billion, IBM said in a statement.

Shares of Power Finance Corporation declined after the Cabinet Committee on Economic Affairs (CCEA) on Thursday approved the sale of government’s 52.63 per cent stake in REC to Power Finance Corporation for an estimated Rs 15,000 crore.

Source: Economic Times