Stock markets closed higher today on the back of gains in metal stocks as global aluminium prices soared, while the country’s biggest software services exporter, Tata Consultancy Services Ltd, rose ahead of its results.
The NSE metal index jumped 4 per cent as aluminium prices on the London Metal Exchange surged 5 per cent to their highest in almost seven years on Thursday.
Shares of Hindalco soared over 8 per cent while shares of Vedanta Ltd, the Indian unit of diversified miner Vedanta Resources Plc, rose 6 per cent. Tata Steel shares gained over 3 per cent.
The Sensex ended 95 points higher at 34,427 while Nifty rose to 10,565, up 39 points.
“Markets had a breather on Wednesday mainly due to profit booking, but the optimism of positive quarterly results are driving the momentum,” said Anand James, chief market strategist at Geojit Financial Services.
Investors cheered March-quarter results of IT firm Mindtree Ltd, sending the shares 3 per cent higher.
Information technology stocks bounced back from recent losses with the NSE IT index up more than 1 per cent and TCS gaining nearly 1 per cent.
Meanwhile, shares of state-run oil refiners tumbled and were the top percentage losers on the NSE index as oil prices remain close to late 2014-highs on the back of declining US crude inventories, while top exporter Saudi Arabia pushed for higher prices.
HPCL slumped 6 per cent while Bharat Petroleum Corp Ltd fell nearly 7 per cent.
“Investors are shrugging off the rising oil prices as our inflation over the past few months has eased and even the monsoon forecast is for a normal one,” James added.>