Published on 15/07/2019 10:25:17 AM | Source: Reuters

Sensex, Nifty lifted by Infosys, Yes Bank; DHFL sinks

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By Chris Thomas

Indian shares headed higher on Monday, led by Infosys Ltd after the country's no.2 software services firm reported a strong quarter and raised its revenue forecast.

The broader NSE Nifty was up 0.2% at 11,576 as of 0430 GMT, while the benchmark BSE Sensex was 0.3% higher at 38,855.61.

Broader Asian shares were also buoyant after China's second-quarter economic growth came in line with consensus, and industrial output and retail sales topped forecasts, suggesting the world's second-biggest economy may be starting to stabilise thanks to ramped-up stimulus from Beijing.

On Friday, data showed India's retail inflation stayed below the central bank's target in June despite hitting a eight-month high on higher food prices, potentially giving the RBI room for a further interest rate cut to boost slowing growth.

Infosys topped gains on the local indexes, climbing as much as 5.8% in its sharpest intraday gain in two years and pushing the Nifty IT index 2.1% higher.

The IT firm on Friday lifted its revenue forecast for the fiscal year ending March 2020 to between 8.5% and 10% on constant currency basis, from its previous guidance of between 7.5% to 9.5%, as its first-quarter net profit beat analysts' estimates.

Yes Bank Ltd rose as much as 5.4% after television channel ET NOW said the private-sector lender got a $850 million term-sheet from a U.S.-based private equity firm.

Sun Pharmaceutical Industries Ltd advanced 4.2% and was headed for its fifth straight session of gains.

Shares of property finance firm Dewan Housing Finance Corp Ltd (DHFL) plunged 10% after warning that it may not survive as a going concern, as it posted first quarterly loss since at least 2005.

Allahabad Bank sank 14.4%, its worst daily drop since Nov. 13, after the state-owned bank said it detected a fraud worth $259 million in accounts of bankrupt steelmaker Bhushan Power & Steel Ltd.

Allahabad Bank is the second Indian state-owned bank to report a major alleged fraud by Bhushan this month.

(Reporting by Chris Thomas in Bengaluru; editing by Gopakumar Warrier)