Indian shares extended its winning streak to the third straight day on Monday led by gains in TCS, which ended nearly 4 per cent higher after the company announced a Rs 16,000-crore share buyback plan. Buying in metal shares also supported gains in the broader indices.
Sensex gained 192.83 points to end at 28,661.58 while the Nifty50 index added 57.5 points to end at 8,879.2, a level not seen since September 8, 2016.
Markets remained rangebound throughout the day. However, TCS' Rs 16,000 crore share buyback announcement towards the closing hour led to buying in TCS shares, which surged as much as 6.1 per cent before settling 3.92 per cent higher at Rs 2,505. Investors also rushed to buy other IT stocks expecting similar announcement from tier 1 IT companies as they are sitting on huge cash, which is weighing on shareholder's return. Infosys jumped 3 per cent, while HCL Tech added 0.9 per cent.
Meanwhile, telecom shares also climbed on Monday after a news report said Vodafone group would likely finalise talks for a merger with Idea Cellular within a month, citing unidentified sources. Idea Cellular shares closed 2.6 per cent higher, while Bharti Airtel added 1.19 per cent.
Meanwhile, Tata Teleservices (Maharashtra) Ltd rose 6.6 per cent after The Economic Times reported the company was seeking to be part of an entity that would include Reliance Communications, Aircel and MTS.
Other than telecom and IT metal shares were also in limelight today. The metal sub-index of NSE was up over 2 per cent. Tata Steel was the top gainer in Nifty, ended 4.03 per cent higher.
Among other movers, shares of Havells India Ltd and Lloyd Electric and Engineering fell 2.66 per cent and 16.75 per cent respectively after they said on Sunday that Havells would buy a unit of Lloyd that sells air conditioners and televisions in a Rs. 1,550 crore deal.
Buying was also visible in mid and small cap shares. The BSE Midcap index closed 0.68 per cent higher, while the smallcap index added 0.91 per cent.
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