Nifty, Sensex close at over 3-month high as IT stocks and RIL drive gains

Indian benchmark indices closed today's session on a high note driven by gains in information technology shares and index heavyweight Reliance Industries Ltd (RIL) stock.

Sensex and Nifty50 rise for the sixth straight day to close at over 3-month highs.

On Wednesday, Nifty50 closed at 17388.15, up 0.3 percent while Sensex ended 0.4 percent higher at 58350.53.

Voltas shares fell 2 percent after the company reported lower-than-estimated earnings on all parameters-profit, sales, margin and EBITDA. CLSA has a ‘sell’ recommendation with a target price of Rs 930 on Voltas stock after the brokerage firm said that weak margin led the company to report earnings below estimate.

Shares of oil and gas companies declined as the Street remained cautious after windfall taxes were revised last evening. The government has cut the windfall tax on diesel and aviation turbine fuel (ATF) but raised the duty on domestically produced crude oil. Bucking the trend, RIL shares settled nearly 1 percent higher.

Spicejet stock skyrocketed 13 percent after it was learnt that promoter Ajay Singh is in talks with a Middle Eastern carrier for a possible stake sale. Talks are ongoing with a large Indian conglomerate too.

Zomato shares declined around 10 percent intraday, but ended off its day's low, as 66.6 crore shares or 8.4 percent equity worth Rs 3,464 crore changed hands in a series of block deals at an average of Rs 53 per share, 4.6 percent lower than the previous close of Rs 55.60 per share.

Snapping a three-day winning run today, YES Bank shares retreated from 52-week highs with large volumes following the news of the private sector lender announcing a mega fund-raising plan.  The stock closed about 4 percent lower.

MSCI’s broadest gauge Asia-Pacific ex Japan was up 0.3 percent while key European indices were also in the positive territory. S&P futures also rose 0.4 percent hinting at a positive start for the Wall Street.

Markets weighed risks from the US House Speaker Nancy Pelosi's visit to Taiwan and comments from the US Federal Reserve officials talking up the chance of aggressive interest rate hikes.

China furiously condemned the highest-level US visit to Taiwan in 25 years as Pelosi pledged American solidarity to an island Beijing views as a breakaway province.

Although China kicked off a burst of military activity in Taiwan's surrounding waters, investors took some comfort in expectations that Beijing's actions would remain demonstrative.