Sensex, Nifty rise on IT gains; worries over border tensions, virus lingerSensex, Nifty rise on IT gains; worries over border tensions, virus linger
A man walks past the Bombay Stock Exchange (BSE) building in Mumbai

By Sethuraman N R

BENGALURU (Reuters) – Indian shares rose on Friday, bolstered by information technology stocks, but gains were limited as investors remained nervous about rising coronavirus cases and border tensions with China.

The Nifty rose 0.52% to 10,340 and the Sensex was up 0.5% at 35,010 as of 0513 GMT. Both indexes surged more than 1% earlier in a volatile trading session.

The Nifty information technology index was the top gainer, rising 3.7%. Infosys Ltd and Tata Consultancy Services Ltd rose 5.1% and 4%, respectively, providing the biggest boost to the blue chip index.

“Because of concerns over economic degrowth and rising infections … sectoral churning is happening with money moving to safety,” said Saurabh Jain, assistant vice president of research at SMC Global Securities in New Delhi.

“Markets are looking at the balance sheet and cash flows. Big IT companies have such balance sheets and can easily adapt to situations.”

Investors are keeping a close watch on tensions between India and China due to their border dispute.

India on Thursday accused China of deploying large numbers of troops and weapons along a disputed Himalayan border in violation of bilateral agreements.

Also, data showed on Thursday that India’s total coronavirus cases rose to nearly half a million with the death toll climbing to about 15,000.

Shares of Indian Overseas Bank Ltd surged 9.62% after the lender on Thursday reported a profit in the March quarter, compared with a loss a year earlier.

Shares of consumer goods giant ITC Ltd rose as much as 3.6% ahead of its fourth-quarter earnings later in the day.

Meanwhile, Asian shares were set to end a choppy week more or less where they began as surging coronavirus infections cast a shadow over encouraging economic data.

(Reporting by Nallur Sethuraman in Bengaluru; Editing by Anil D’Silva)