IT lifts Nifty after HCL outlook; SEBI norms help small, mid-caps

  • Reuters
  • Stock Market News
IT lifts Nifty after HCL outlook; SEBI norms help small, mid-caps
Credit: © Reuters.

By Chris Thomas

BENGALURU, Sept 14 (Reuters) - Indian shares rose on Monday, boosted by IT stocks after HCL Technologies raised its outlook for the September quarter, while small- and mid-cap names were helped by a change in asset allocation norms for multi-cap funds.

The NSE Nifty 50 index .NSEI climbed 0.74% to 11,549.2 by 0507 GMT and the benchmark S&P BSE Sensex .BSESN 0.83% to 39,172.76, both heading for their third straight session of gains.

India's markets regulator said on Friday multi-cap funds must invest at least 25% each in large-cap, mid-cap and small-cap stocks, boosting the Nifty Smallcap 100 .NIFSMCP100 by 5.3%, and the Nifty Midcap 50 Index .NIMDCP50 by 2.2%.

The watchdog, however, clarified https://www.sebi.gov.in/media/press-releases/sep-2020/clarification-pursuant-to-circular-dated-september-11-2020-regarding-asset-allocation-of-multi-cap-schemes-of-mutual-funds_47546.html on Sunday that mutual funds were free to choose the route to comply with those norms.

"People are anticipating that 300-400 billion rupees ($9.54 billion) of buying will happen in mid- and small-caps after the norms because of under-allocation in these stocks," said Harendra Kumar, managing director of institutional equities at Elara Capital.

IT firm HCL Technologies Ltd HCLT.NS was the biggest percentage gainer on the Nifty, jumping 6.6% to a record high, after it upgraded revenue and operating margin outlook for the September quarter. gave a fillip to other IT stocks, pushing the Nifty IT index .NIFTYIT 3% higher to an all-time peak.

Reliance Industries Ltd RELI.NS rose 1.7% to a record high after local daily Mint reported that private equity firm Carlyle Group CG.O was looking to invest up to $2 billion in the conglomerate's retail business. sentiment, AstraZeneca AZN.L resumed clinical trials of its COVID-19 vaccine, one of the most advanced in development, after getting the green light from safety watchdogs, pushing Asian shares higher on Monday. are also eyeing inflation data due later in the day, with the number likely to have stayed above the Reserve Bank of India's medium-term target range in August for the fifth straight month, according to a Reuters poll.

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  • Rakesh Prasad @Rakesh Prasad
    Bank nifty pulling down the nifty. Until loan moratorium issue sorted out , indian stock market head down opposite to world market.
    Like 0

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