IT boost lift Indian shares to record closing highs

BENGALURU, July 18 (Reuters): Indian shares recovered from a weak start to end at record closing highs on Thursday, led by information technology stocks as LTIMindtree's better-than-expected results added to expectations of a turnaround in the sector's fortunes.
The NSE Nifty 50 added 0.76 per cent to end at 24,800.85, while the S&P BSE Sensex settled 0.78 per cent higher at 81,343.46. They both opened lower, before recovering to hit intra-day all-time highs.
Ten of the 13 major sectors logged gains.
The IT index jumped 2.22 per cent to a record high. LTIMindtree rose 3.5 per cent after it reported a bigger-than-expected rise in first-quarter profit on Wednesday.
Infosys rose about 2 per cent on the day. Its results, which came just after the close, showed India's No.2 IT company beat revenue estimates, helped by a recovery in demand from clients in its key verticals.
The IT index has gained 7.2 per cent in the four sessions since market leader Tata Consultancy Services' results sparked hopes of a revival in demand for the sector.
Besides the positive start to the earnings season from IT companies, expectations of policy continuity in the national budget on July 23 is another trigger for the market rally, analysts said.
"Markets are rejoiced by the fact that the government has the leeway to spend on boosting demand and consumption, while maintaining its adherence to fiscal prudence," said Harish Krishnan, co-chief investment officer and head of equity at Aditya Birla Sun Life Asset Management Company.
Still, not all earnings were positive.
Bajaj Auto dropped about 1 per cent after analysts flagged weakness in exports and elevated valuation as key concerns after the automaker reported in-line quarterly results on Tuesday.
Asian Paints lost about 1.5 per cent after its quarterly earnings missed expectations due to weak demand and price cuts.
The broader, more domestically focussed small- and mid-caps lost about 1 per cent each.