Indian shares jump after TCS, Wipro buyback plans

BENGALURU, Oct 8 (Reuters) - Indian shares jumped on Thursday as IT stocks gained after Tata Consultancy Services decided to buy back up to $2.2 billion in shares and smaller-rival Wipro said it would also consider stock repurchase.

The NSE Nifty 50 index rose 1.18% to 11,877.05 as of 0512 GMT, while the S&P BSE Sensex was up 1.28% to 40,388.08

IT stocks were among the top gainers on the blue-chip Nifty 50, with Wipro Ltd adding as much as 5.5% to a record high of 353.65 rupees.

“The language from TCS was strong and they were quite vocal that things are pretty much good...that is driving IT stocks higher today,” said Saurabh Jain, assistant vice president at SMC Global Securities.

Tata Consultancy Services, the country’s largest IT services firm, rose as much as 5.2% to a record high of 2,877.9 rupees as operating margins for the September quarter rose. The Nifty IT index was up 3.7%.

“These companies (IT) will do very well as they are able to clinch deals in many sectors,” Jain said.

Bandhan Bank’s shares hit their highest level in more than a month after it said loans and advances as of September-end were up 20% from a year earlier. The bank’s total deposits as of Sept. 30 rose 34% to 661.53 billion rupees.

Meanwhile, shares in Future Retail slid as much as 9.4% after e-commerce giant sent a legal notice to Future Group’s promoters for entering a deal with Mukesh Ambani’s Reliance Industries. (Reporting by Philip George in Bengaluru; Editing by Arun Koyyur)