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Asia300

India shares rise on Tata Consultancy stock buyback plan

MUMBAI (NewsRise) -- Indian shares rose Thursday, led by gains in software stocks, after Tata Consultancy Services said it will consider a share buyback next week.

The benchmark BSE Sensex rose 0.5% to 28,301.27 points, marking the largest single-session gain since Feb. 6, while the broader NSE Nifty 50 index closed 0.6% higher at 8,778 points. Tata Consultancy, India's biggest company by market value, gained 1.3% to 2,446.90 rupees, its highest level in more than five months.

"It was a relief rally," said Vinod Nair, head of research at Geojit Financial Services.

"Possibilities of share buyback in the information technology sector and a rebound in pharma stocks aided sentiment. Both the sectors are available at cheap valuations compared to historical parameters."

Nineteen of the 30 Sensex constituents ended higher, while overall on the BSE, advancing issues beat declining ones 1,803 to 998 and 177 issues were unchanged.

The BSE Information Technology index ended up 2% at 10,336.30 points. Dealers expect more software companies to come out with buyback proposals or increased dividend payouts amid attractive sector valuations and high cash businesses.

Infosys gained 3% to 1,011.90 rupees and Wipro added 1.3% at 480.60 rupees.

Sun Pharmaceutical Industries rose 4.3% to 649.30 rupees. Media reports that the drug maker has received approval from the U.K. regulator for generic drug Tobramycin helped the gains, dealers said.

State Bank of India rose 0.7% to 270.40 rupees after the federal cabinet late Wednesday gave a final approval for the merger of five associate banks with the nation's biggest lender.

Companies that had declined sharply in the previous sessions staged a rebound on Thursday, helped by buying support from domestic funds. Maruti Suzuki India rose 2.8% to 6,027.05 rupees, its first gain in seven sessions, while Tata Motors rose 2.1% to 445.90 rupees after a near 14% slump in the previous two sessions.

Cigarette-maker ITC fell 2.5% to 266.70 rupees.

Elsewhere in Asia, Japan's Nikkei 225 index ended down 0.5% while Hong Kong's Hang Seng ended 0.5% higher. China's Shanghai Composite index rose 0.5%. South Korea's Kospi declined 0.1%.

--Dhanya Ann Thoppil

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