Key benchmark indices BSE Sensex and NSE Nifty rose more than 1 per cent on Thursday on the back of short coverings, firm global cues and banking on spate of policy reform announcements of the government on Wednesday. Expectations that US Fed may take care in tightening rates after a likely December lift-off also supported market sentiments.
Traders were also encouraged by Chief Economic Adviser Arvind Subramanian’s statement that inflation is completely under control and it is well within the target of the Reserve Bank.
Sensex closed 359.40 points up at 25,841.92, while Nifty closed 110.94 points up at 7,842.75. Sustained buying was seen in auto, IT, banking, capital goods, technology and FMCG stocks while healthcare saw some mild selling.
Vinod Nair, head, fundamental research, Geojit BNP Paribas Financial Services, said, “The Government’s intention to push for reforms just before the start of winter parliament session is being taken positively by the market. Additionally on the global front, the FOMC minutes appear to indicate that the US rate hike will only be a gradual increase, which is positive for emerging markets since they are already under pressure due to FIIs outflow.”
In the 50-share index, Tech Mahindra, Bajaj Auto, GAIL, Zee Entertainment, HCL Technologies gained between 3.30 per cent and 3.60 per cent. On the other hand, Dr Reddy’s Labs, Sun Pharma, Idea Coal India and Bank of Baroda fell between 0.20 per cent and 2.05 per cent.
Shares of Punj Lloyd jumped over 5 per cent on Thursday after the engineering major said it has bagged two rural electrification contracts worth Rs 483 crore from NTPC for Puri and Koraput districts of Odisha.
Dr Reddy’s Laboratories shares wiped off some of their losses and closed 2.63 per cent down after falling as much as 6.8 per cent earlier in the day after the drugmaker said it followed all disclosure norms required by the US and Indian regulators. The stock fell after US law firm Lundin Law made a class action appeal over allegations of misleading statements from the Indian drugmaker.
Overall market breadth remained strong on the BSE as 1,784 stocks ended with gains while 920 closed with losses.
The Cabinet Committee on Economic Affairs (CCEA) has approved a 10 per cent stake sale in Coal India, an initial public offering at Cochin Shipyard and a five-year interest subsidy scheme to boost sagging exports. CCEA also empowered the National Highways Authority of India (NHAI) to revive 34 stalled projects.
European markets were trading with good gains, France’s CAC gained 40.76 points or 0.83 per cent to 4,947.48, UK’s FTSE 100 increased 71.54 points or 1.14 per cent to 6,350.51 and Germany’s DAX was higher by166.13 points or 1.52 per cent to 11,126.08.
The Asian markets closed higher on Thursday, after minutes from the Federal Reserve showed growing confidence in the US economy, ramping up the chances of a December interest rate hike. The Bank of Japan maintained its current pace of monetary stimulus, clinging to hopes that an economic recovery is in sight despite soft domestic capital expenditure and challenging global business conditions.
Markets through the day
3.30 pm: Sensex surged 359.40 points to close at 25,841.92, while Nifty climbed 110.95 points to end above 7,800-mark at 7,842.75.
3.04 pm: Hero MotoCorp shares rose more than 3 per cent, lifting other automobile stocks after the company said its retail sales crossed 1 million units in the festive season. At 3.06 pm, shares of Hero MotoCorp were up 1.02 per cent at Rs 2,598. The BSE Auto index was up 1.26 per cent at 18528.23.
2.43 pm: Sensex was trading 305.03 points up at 25,787.55. NSE Nifty was trading 85.55 points up at 7,817.35. Drug firm Strides Arcolab Ltd has changed its name to Strides Shasun Ltd. “The name change to Strides Shasun is now effective post issue of fresh certificate of Incorporation dated November 18,2015 issued by the Registrar of Companies, Mumbai,” the company said in a filing to BSE.
2.20 pm: Airline stocks were flying high on Thursday. SpiceJet, Jet Airways and Indigo were up 7.52 per cent, 6.14 per cent and 5.86 per cent, respectively.
Shares of SpiceJet and InterGlobe Aviation ended on Wednesday with gains, while Jet Airways closed in the negative zone amid high volatility after CCI slapped penalties on them for cartelisation, even as the airlines said they will oppose the order.
2.02 pm: Domestic equity markets were trading higher by over a per cent in afternoon deals, as investors opted to buy beaten down but fundamentally strong stocks owing to strong global cues. The benchmarks after making a gap-up opening were strengthening gradually with no sign of any profit taking till yet and Nifty and Sensex recaptured their crucial 7,800 and 25,800 levels respectively. Sentiments also remained up-beat with Chief Economic Adviser Arvind Subramanian’s statement that Inflation is completely under control and it is well within the target of the Reserve Bank. Significant recovery in Indian rupee against dollar too aided sentiments. Sensex was up 322 points at 25,804. Nifty was up 95.85 points at 7,827.65.
1.48 pm: The market breadth on BSE was positive, out of 2,700 stocks traded, 1,665 stocks advanced, while 835 stocks declined on the BSE. Sensex was up 354 points at 25,837.
1.18 pm: Sensex was up 354 points at 25,837. All the sectoral indices on the Bombay Stock Exchange were in green in the afternoon trade.
12.53 pm: Shares of Dr Reddy’s Labs were trading 1.61 per cent down at Rs 3321.10. The scrip fell as much as 7 per cent intraday on BSE after the US law firm Lundin Law makes class action appeal over allegations of misleading statements from the Indian drugmaker. BSE Sensex was trading 310.49 points up at 25,793.01. Similarly, Nifty was trading 91.40 points up at 7,823.20.
12.30: The upward movement of Sensex continued as it jumped 306.61 points to 25,789.13. NSE Nifty was trading 89.95 points up at 7,821.75. Religare Enterprises shares were trading 1.86 per cent down at Rs 272.00 after the company decided to exit mutual fund business with sale of its controlling 51 per cent stake in Religare Invesco AMC to the foreign partner Invesco.
12.07: Sensex continued the upward movement and was trading 285.40 points up at 25,767.92. Similarly, Nifty was trading 85.15 points up at 7,816.95. BSE Information Technology index was up 1.59 per cent.
12.02 pm: Sensex was up 306.64 points at 25,789.
11.52 am: Take Solutions on Wednesday announced the acquisition of Ecron Acunova, a Bangalore headquartered company which focuses on delivering services for clients in Biosimilar , Regenerative medicine and Diagnostic Imaging Studies. According to Centrum Broking, Ecron derives around 50 per cent of its revenues from Europe and would enable Take Solution expand in the European region (Take currently derives only 7.2 per cent of revenues from Europe). Shares of Take Solution were trading 1.62 per cent up at Rs 185.20.
11.35 am: Insecticides (India) has unveiled ‘Insecticides’, a mobile phone application for farmers, shopkeepers and dealers to give them all the information about the company’s products. The Insecticides will be available on Android phones and can be downloaded from Google Playstore free of cost. The app will give 24X7 information to users on the company’s product type, category, features and dosage. The share price of the company was trading 0.66 per cent up at Rs 365. Sensex was up 271 points at 25,753.
11.10 am: Eros International Media share price jumped as much as 5 per cent on Thursday on reports that the company may go for a share buyback. The scrip was trading 4.77 per cent up at Rs 224.10. Sensex was up 257 points at 25,739. Nifty was up 76 points at 7,807.
10.35 am: Shares of Jindal Stainless fell 5 per cent on NSE after the company planned operational and financial restructuring in a bid to cut its Rs 8,580 crore of debt by 64 per cent.
10.19 am: In the 50-share index, Idea Cellular, Asian Paints, GAIL, BPCL and Coal India were up between 0.49 per cent and 3.41 per cent. On the other hand, Hindalco, Infosys, Tata Steel, Punjab National Bank and Vedanta were down between 3.19 per cent and 5.44 per cent. Nifty was up 51.60 points at 7,783. The 30-share Sensex was up 205 points at 25,688.
Nifty Gainers and Losers @ 10.19 am
10.05 am: According to reports, Cairn India has reduced its capital expenditure programme for the current financial year by 40 per cent, a move that could accelerate the fall in output from the country’s largest onshore oil block at Barmer in Rajasthan. Shares of Cairn India were trading 1.67 per cent up at Rs 136.95 in the morning trade. Sensex was up 157 points at 25,640.
9.56 am: Orient Green Power Company informed BSE that it has received an approval to enter into a Memorandum of Understanding (MoU) with Chandrabhan Katewa to divest 26 per cent equity shares held by the company in Sanjog Sugars & Eco Power through an investment vehicle to be identified by Chandrabhan Katewa subject to all required approvals. The Investment and Borrowing Committee Meeting of Board of Directors of the Company held on November 17, 2015, has approved for the same. Shares of Orient Green Power were trading 1.36 per cent up at Rs 12.70.
9.47 am: Sensex was up 169 points at 25,651. Nifty was up 43.10 points at 7,774.90. Brokers said all-round buying by participants, tracking a rally at the other Asian markets following overnight gains at Wall Street bounced on expectations the Federal Reserve would be confident enough of the US economy to raise rates in December, mainly influenced the sentiment here.
9.43 am: The rupee recovered by 24 paise to 66.06 against the dollar in early trade today at the Interbank Foreign Exchange on increased selling of the US currency by exporters and banks amid higher opening in the domestic equity market.
9.20 am: Sensex was up 182 points at 25,665. Shares of Hero MotoCorp were trading 1.41 per cent up at Rs 2,608.05. Hero MotoCorp, the world’s largest two-wheeler manufacturer, has further consolidated its leadership, clocking over 1 million (10 lakh) units in retail sales during the festive season this year. The 1 million unit landmark was achieved during the 35-day festive period starting with the Navratri. This is an increase of 11 per cent in retail sales over the corresponding period last year.
9.15 am: The BSE Sensex and NSE Nifty opened in green on Thursday on the back of short coverings and firm global markets. Sensex opened 157.82 points up at 25640.34. Nifty opened 56.70 points up at 7,788.50.
Shares of Hero MotoCorp will remain in focus today as the two-wheeler maker has clocked over 10 lakh units in retail sales during the festive season this year.
Employee unions at Coal India on Wednesday opposed the government’s decision to sell 10 per cent stake in the miner, with one of the trade unions threatening to go on strike against the divestment.
As per provisional figures, foreign institutional investors (FIIs)/ Foreign Portfolio Investors (FPIs) sold shares worth net Rs 768.46 crore on 18th November 2015. Domestic institutional investors bought shares worth Rs 759.26 crore on that day.
Asian share markets rose on Thursday as Wall Street bounced on expectations the Federal Reserve would be confident enough of the US economy to raise rates in December but would then proceed with great caution on further tightening. Hang Seng, Nikkei and Shanghai were up 1.32 per cent, 1.36 per cent and 0.50 per cent, respectively.
The Dow Jones Industrial Average index closed with a gain of 1.43 percent on Wednesday, while the S&P 500 added 1.62 per cent and the Nasdaq 1.79 per cent.
According to YES Securities, the US market on Wednesday rallied on hopes of a Fed rate hike in December. The Fed’s October minutes show that many members of the committee believe a rate hike next month would be appropriate.
Minutes of the October discussions released Wednesday revealed Fed officials’ view that the job market would improve further and that inflation would begin to move toward their 2 percent annual target.
Back home, equity markets bore the brunt of a worsening global risk environment as the benchmark BSE Sensex on Wednesday snapped its 2-day rally and fell almost 382 points to close at over a 2-month low of 25,482.52. In addition, lacklustre September quarterly earnings kept investors cautious, who looked forward to US Fed minutes of the last policy meeting to decide on their future course of
action. Bouts of profit-booking following recent gains and sustained capital outflows dampened stocks further, brokers said.
The 50-share NSE Nifty broke below the 7,800-mark and ended at c, down 105.75 points, or 1.35 per cent.
(With inputs from agencies)