Widespread buying in metal, realty, banking, capital goods and power stocks alongwith short coverings and firm global cues supported benchmark indices in Monday’s Trade. As a result, the BSE Sensex and NSE Nifty advanced 568 points and 182 points to 23,554.12 and 7,162.95, respectively.
In the 50-share index, Bank of Baroda surged 23.18 per cent, followed by Vedanta (17.39 per cent), Tata Steel (13.56 per cent), Hindalco (9.28 per cent) and Larsen & Toubro (9.05 per cent). On the other hand, Bharti Airtel, HUL, Idea Cellular and HDFC Bank slid 1.80 per cent, 1.11 per cent, 0.78 per cent and 0.16 per cent, respectively.
All the sectoral indices in the BSE closed in green with the BSE Metal index and BSE Capital Goods surging 8.79 per cent and 6.73 per cent to 6,888.93 and 12,007.95, respectively.
Nifty 50 – Top 5 Gainers and Losers
Jayant Manglik, president, retail distribution, Religare Securities, said, “Firm global cues played integral part for the initial uptick, which further supported by recovery in rupee against the US dollar. Though it was broad-based recovery but interestingly all the three underperforming sectors – PSU banks, Metal and Realty gained maximum on sectoral front. Perhaps, short covering in these sectors helped them to post such gains.”
In scrip specific development, Bank of Baroda shares rallied over 20 per cent after the bank at the time of announcing Q3 December 2015 results stated that its management is confident the bank will make profit in Q4 March 2016. The bank posted a quarterly net loss of Rs 3,342 crore, compared to profit of Rs 124 crore quarter-on-quarter. The loss was driven by a 225 per cent increase in provisions, which rose from Rs 1,891 crore in the previous quarter to Rs 6,164 crore.
Vedanta shares gained after the company said it will ink a Memorandum of Understanding (MoU) with the Odisha government to set up the aluminium park across 240 acres of land in Jharsuguda. Shares of Vedanta closed 18.25 per cent up at Rs 74.85.
Among the day’s major market moving events, wholesale prices shrunk once again, for the 15th straight month in January 2016. WPI index declined 0.9 per cent year on year after a 0.73 per cent decline recorded in the previous month. The decline is led mainly by fuel and power segment (besides the base effect) which was down 9.21 per cent year on year. Inflation in food articles was at 6.02 per cent against 8.17 per cent logged in December.
On the global front, Nikkei jumped more than 7 per cent intraday in Monday’s trade on the back of value buying, short covering and weaker yen. The rise gave a sigh of relief to the already deflation battling Japanese economy which recently introduced negative interest rates for the first time.
At the same time, Gold prices fell by around 2 per cent in today’s session reacting to the rise in equity markets, signaling the rise in risk appetite. Spot Gold in Singapore fell to a low of $1211.05, down by 1.9 per cent while it fell to Rs 28,717 per 10 grams in MCX, down by more than 2 per cent intraday.
At the same time, crude oil prices continued to worry investors globally after it edged down once again in Monday’s session, paring its gains of more than 10 per cent in the previous sessions. The oil prices recovered sharply last week after market expectations that OPEC might just agree to cut output to reduce world inventory glut. Today London brent crude was down 45 cents while Nymex crude was down by 37 cents on their respective bourses. Asian peer market Hang Seng was up by 3.27 per cent for the day while Shanghai was down by 0.63 per cent.
Markets through the day
3.30 pm: The BSE Sensex and NSE Nifty advanced 568 points and 182 points to 23,554.12 and 7,162.95, respectively.
3.15 pm: Bharat Heavy Electricals (BHEL) has successfully commissioned a 101 MW gas-based Combined Cycle Power Plant (CCPP) on Engineering, Procurement and Construction (EPC) basis, in Tripura. The power plant has been commissioned at Monarchak, 66 km from Agartala city. The order for the Advanced-class gas turbine-based 101 MW CCPP was placed on BHEL by North Eastern Electric Power Corporation (NEEPCO). BHEL shares were trading 3.25 per cent up at Rs 107.95.
2.59 pm: Oil India has reported 17.59 per cent fall in its net profit at Rs 410.65 crore for the quarter ended December 31, 2015 as compared to Rs 498.28 crore for the same quarter in the previous year. However, the company’s total income has increased by 3.77 per cent to Rs 2583.75 crore for the quarter under review from Rs 2,489.90 crore for the corresponding quarter of the previous year. Shares of Oil India were up 2.34 per cent at 323.45. Sensex was up 591 points at 23,578.
2.48 pm: Sensex was trading 602.78 points up at 23,588.90. NSE Nifty was trading 188.20 points up at 7,169.15. BSE Realty index was up 6.75 per cent.
European shares opened sharply higher on Monday on the back of gains in Asia where the Nikkei surged more than 7 percent and a stronger fix of the yuan eased devaluation concerns. By 0822 GMT, the pan-European FTSEurofirst 300 index rose 2.5 percent to 1,262.59 points, while the Euro Stoxx 50 index was also up by a similar amount.
2.08 pm: Meanwhile, to safeguard investor interest, capital markets regulator Sebi has notified a stricter set of norms for mutual funds, wherein it has capped the investment limit in bonds of a single company at 10 per cent. The move comes after JP Morgan Mutual Fund got into troubles due to its exposure to debt securities of Amtek Auto, while a few other fund houses have also faced similar problems with regard to corporate bonds of other distressed firms. Sensex was up 607 points at 23,593.
2.04 pm: Mortgage lender Dewan Housing Finance (DHFL) expects a five-fold jump in small and medium enterprises (SME) loans by 2018 as part of its business diversification plan. In just one year, DHFL’s SME lending business has grown to over Rs 1,100 crore. The company has a customer base of nearly 1,200 units spread across tier II and III markets. For the third quarter ended December, DHFL reported a 16.4 per cent rise in net profit at Rs 185.90 crore on higher loan disbursements. The company’s net profit was Rs 160 crore in the corresponding period last fiscal. Shares of DHFL were trading 4.12 per cent up at Rs 159.20.
1.55 pm: Sensex was up 592 points at 23,578. Besides, firm trend at other Asian markets, tracking weekend gains at the US markets, too were supporting the markets.
1.52 pm: Vedanta, NMDC and Jindal Steel were up 17.85 per cent, 15.60 per cent and 13.45 per cent, respectively. The BSE Metal index was up nearly 10 per cent at 6,952.15.
1.24 pm: The top gaining sectoral indices on the BSE were Metal up by 9.85 per cent, Realty up by 6.15 per cent, Capital Goods up by 6.71 per cent and Oil & Gas up by 4.16 per cent, while there were no losers on the sectoral index.
1.10 pm: SPML Infra shares were trading 14 per cent up after it informed BSE that it has received two major new orders for drinking water supply worth Rs 812.49 crore from the state of Rajasthan and Telangana. The order of Rs 549.87 crore has been received from Rural Water Supply and Sanitation Department, Government of Telangana for providing drinking water facility to the habitations in Manthani–Bhupalapallysegment (under Karimnagar and Warrangal district) including operation and maintenance for 10 years. The project is initiated under the scheme to provide safe, adequate, permanent, sustainable and secured drinking water supply system through the Telangana Drinking Water Supply Project for covering Rural, Urban and Industrial areas by year 2018 as per with National Rural Drinking Water Supply Guidelines.
12.50 pm: Bharat Petroleum Corporation (BPCL) shares gained nearly 5 per cent in the morning trade after the comany 170 per cent rise in its net profit figures to Rs 1488.60 crore for the quarter ended December 2015 against Rs 551.16 crore in the same quarter last year. The scrip was trading 3.28 per cent up at Rs 796.45. Sensex was up 547 points at 23,533.
12.33 pm: Shares of Indian Oil Corporation surged as much as 10 per cent after the oil marketing company reported 215.93 per cent rise in net profit figures for the quarter ended December 2015. The company reported net profit of Rs 3056.86 crore in October-December 2015 against net loss of Rs 2636.80 crore in the same quarter last year.
12.27 pm: WPI inflation drops to (-)0.9 per cent in January from (-)0.73 per cent in December. Sensex was up 535 points at 23,521. Nifty was up 175.20 points at 7,156.15.
12.05 pm: Market benchmark Sensex was trading 528 points up amid all-round buying in frontline shares led by metal, realty, capital goods, industrials, energy and bank sectors.
11.35 am: Shares of Torrent Pharmaceuticals surged as much as 4.25 per cent in the morning trade on Monday after it informed BSE that the Gujarat High Court has sanctioned the scheme of Amalgamation of Zyg Pharma with the company. The BSE Sensex was up 550 points, or 2.29 per cent, at 23,536.21.
11.25 am: Nifty was up 174.10 points at 7,155.04. Tata Steel SEZ, wholly owned subsidiary of Tata Steel is planning to invest about Rs 2,000-2,500 crore for development of infrastructure at Gopalpur in Odisha in the near term. Shares of Tata Steel were trading 9.11 per cent up at Rs 237.70.
11.07 am: Financial Technologies shares hit their new 52-week low in the morning trade on Monday on reports that government has ordered to merge Financial Technologies with the National Spot Exchange (NSEL). The scrip was trading 3.89 per cent down at Rs 86.50. Sensex was up 522 points at 23,508. Nifty was up 168.20 points at 7,149.15.
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10.49 am: Bank of Baroda shares were trading nearly 19 per cent higher after the management said that all non-performing assets were accounted for and it could return to profitability next fiscal.
10.40 am: Sensex was up 477 points at 23,463. Brokers said a flurry of buying by investors in blue-chips available at an attractive levels amid a firming trend at other Asian markets, tracking weakened gains at the US markets, mainly influenced the sentiment.
10.15 am: Meanwhile, amid the prevailing gloom and chaos in the global markets, Prime Minister Narendra Modi has said that India is the fastest developing country among the “larger economies of the world”. He said that India is the only economy which has not been affected by the global economic crisis that has hit the world, primarily due to the policies being implemented by the government.
9.55 am: Sensex was trading 421 points up at 23,407. Nifty was up 139.90 points at 7,120.85. In a bid to strengthen its exports market, Ashok Leyland is in process of setting up truck and bus assembling units in Africa. The commercial vehicle manufacturer will set up 2-3 units, one of them in Kenya. In this regard, the company will spend about Rs 30 crore on each of the assembling units. The truck and bus manufacturer is also looking at South-East Asia and South America for exports. The objective is to triple exports over the next 3-5 years from the present 10 per cent. Shares of Ashok Leyland were quoting 3.25 per cent up at Rs 85.90.
9.45 am: Foreign investors pulled out a massive Rs 2,254 crore from the Indian stock market in the last fortnight. However, the debt market saw an inflow of Rs 962 crore during the period.
9.38 am: Sensex was up 381 points at 23,367. Nifty was up 119.45 points at 7,100.40. Rupee strengthened by 11 paise to 68.12 against the dollar in early trade at Interbank Foreign Exchange on increased selling of the US currency by exporters and banks amid higher opening in the domestic equity market.
9.26 am: Diversified group ITC is looking to invest Rs 800 crore in Odisha over the next few years to set up a hotel property and a food processing park in the state. The hotel property will come up in Bhubaneshwar, while the food processing park details are being worked out. Nearly, Rs 630 crore will be invested in the food processing park and the rest of the money will be invested in the hotel. Apart from these two investments, the company is also looking at investments in the agro forestry side in Odisha. Shares of ITC were trading 1.27 per cent up at Rs 304.05.
9.18 am: Sensex advanced further and was trading 302.76 points up at 23,288.88.
9.16 am: Sensex was up 285 points at 23271.64. Nifty was trading 92 points up at 7072.95. Bank of Baroda shares surged over 9 per cent at 125.10.
9.15 am: Sensex opened 237.31 points up at 23,223.43, while Nifty 50 index opened 76.40 points up at 7,057.35.
8.47 am: The BSE Sensex and NSE Nifty are likely to open in green on Monday tracking Nifty futures on the Singapore Stock exchange (SGX Nifty) and firm global cues.
At 8.32 am (IST), SGX Nifty was up 100 points, or 1.41 per cent, at 7,074.
Asian shares bounced to snap a five-session losing streak on Monday as a strong fix for China’s yuan eased devaluation concerns and Shanghai stocks returned from the Lunar New Year holidays with only modest losses. Other Asian peers, Hang Seng and Nikkei were up 2.35 per cent and 5.12 per cent, respectively.
Major US benchmarks ended last week higher, with the Dow Jones industrial average rising 2 percent to close Friday at 15,973.84. The Standard & Poor’s 500 gained 2 percent to 1,864.78 and the Nasdaq composite added 1.7 percent to 4,337.51.
The BSE Sensex managed to end 34 points higher at 22,986.12 on Friday, but recorded its biggest weekly fall in more than six years as fears of a global slowdown and muted quarterly numbers of blue-chips, especially banks, hammered stocks during the week.
The NSE Nifty in choppy movements, tested the 7,000-mark to touch a high of 7,003.80 points at the outset and finally ended 4.60 points or 0.07 per cent up at 6,980.95 in the previous trading session.
Shares of Bank of Baroda will remain in focus on Monday. Bank of Baroda on Saturday reported the highest-ever quarterly loss in the nation’s banking history at Rs 3,342 crore for the October-December period after recognising and providing for the entire quantum of stressed assets identified through a special review undertaken by RBI.
(With agency inputs)