Key equity indices extended gains in mid-morning trade, supported by positive global cues. Hopes for the swift launch of COVID-19 vaccines countered fears about the surge in coronavirus cases.
At 11:24 IST, the barometer index, the S&P BSE Sensex, was up 726.93 points or 2.02% at 36,759.99. The Nifty 50 index added 207 points or 1.95% at 10,814.35.
In the broader market, the S&P BSE Mid-Cap index rose 1% while the S&P BSE Small-Cap index gained 1.20%.
The market breadth was strong. On the BSE, 1438 shares rose and 814 shares fell. A total of 126 shares were unchanged.
Index major Reliance Industries rose about 1.1% ahead of an annual general meeting (AGM) today.
The Nifty IT index surged 5.26% to 16,463.15. The index declined 1.13% on Tuesday.
Among the index constituents, NIIT Technologies (up 6.75%), Mphasis (up 5.88%), HCL Tech (up 4.47%), Tech Mahindra (up 4.21%), Info Edge India (up 4.08%), TCS (up 2.76%) and MindTree (up 2.08%) advanced.
Infosys (up 6.22%) and L&T Infotech (up 1.17%) will announce their first quarter earnings today.
Wipro rallied 15.40% to Rs 259.70 after the IT major reported a 2.76% rise in consolidated net profit to Rs 2390.40 crore on a 5% decline in revenue from operations to Rs 14913.10 crore in Q1 June 2020 (Q1FY21) over Q4 March 2020 (Q4FY20).
In dollar terms, IT services revenue stood at $1921.60 million in Q1, a decrease of 7.3% QoQ. Sequential revenue growth in constant currency terms declined 7.5% in Q1FY21. IT services operating margin improved to 19% in Q1FY21 from 17.6% in Q4FY20.
Wipro said that the conditions caused by the Covid-19 pandemic could decrease technology spending. This may adversely affect demand for the company's products and also affect the rate of customer spending which could adversely affect the customers' ability or willingness to purchase its offerings.
Meanwhile, Wipro on Tuesday said it has signed an agreement to acquire Brazil-based IVIA Serviços de Informática for about $22.4 million. IVIA's local talent and long-standing relationships, combined with Wipro's global expertise, will help expand the information technology firm's geographical footprint in Brazil, Wipro said in a statement. The acquisition will also help Wipro set up delivery centres in the northeast of Brazil leveraging IVIA's workforce, it added.
The US Dow index futures were up 269 points, indicating a strong opening in the US stocks later today.
Most Asian markets advanced after Biotech firm Moderna's potential vaccine to prevent Covid-19 produced a "robust" immune response, or neutralizing antibodies, in all 45 patients in its early stage human trial, according to newly released data in the peer-reviewed New England Journal of Medicine.
Meanwhile, the Bank of Japan said in its outlook report on Wednesday that the country's economy is "likely to improve gradually" from the second of this year, though the pace is "expected to be only moderate" as the impact of the coronavirus pandemic remains globally.
“For the time being, the Bank will closely monitor the impact of COVID-19 and will not hesitate to take additional easing measures if necessary, and also it expects short- and long-term policy interest rates to remain at their present or lower levels,” the BoJ reported added.
US stock indexes closed near session highs Tuesday, after Federal Reserve Gov. Lael Brainard called for sustained large-scale asset purchases by the US central bank to help the economy rebound amid a "thick fog of uncertainty" brought on by COVID-19.
Investors continued to monitor the corporate earnings, efforts by some US states to close down businesses again coupled with rising coronavirus cases and deteriorating US-China relations.
Simmering tensions between the United States and China loom large, as US President Donald Trump on Tuesday said he signed legislation to impose sanctions on China in response to its interference with Hong Kong's autonomy. Trump also said he signed an executive order ending Hong Kong's special status with the U.S.