Indian shares rose around 0.7 percent on Monday, erasing earlier losses to hit their highest close since September as IT stocks rallied after Tata Consultancy Services announced a share buyback at a substantial premium. TCS rose about 4 percent after saying its board approved a share buyback of up 160 billion rupees ($2.39 billion) at 2,850 rupees apiece, well above its closing price of 2,502.20 rupees.
Rival Infosys rose 1 percent. The benchmark BSE index ended up 0.68 percent at 28,661.58, its highest close since September 23, 2016. The broader NSE index ended 0.65 percent higher at 8,879.20, its highest close since September 9, 2016. Telecom shares soared after a report from news agency PTI, carried in The Economic Times, said Vodafone Group would likely finalise talks for a merger with Idea Cellular within a month, citing unidentified sources.
Idea shares gained as much as 5.5 percent. Meanwhile, Tata Teleservices (Maharashtra) Ltd rose as much as 9.9 percent after The Economic Times, reported the company was seeking to be part of an entity that would include Reliance Communications, Aircel and MTS. However, broader sentiment was largely cautious after recent strong gains in markets, with Asian shares largely mixed ahead of key US Federal Reserve events, including minutes of the last policy meeting and speeches by five heads of Fed regional banks.
"Some amount of profit-taking might be happening. There seems to be a lack of interest. Will have to wait and watch," said Deven Choksey, managing director at KR Choksey Shares and Securities. Among other movers, shares of Havells India Ltd and Lloyd Electric and Engineering fell after they said on Sunday that Havells would buy a unit of Lloyd that sells air conditioners and televisions in a 15.5 billion-rupee deal ($231.14 million).