The BSE Sensex and NSE Nifty surged over 1.5 per cent on Monday on account of recent string of positive corporate results which raised tentative hopes about an improving domestic economy. Sentiment was also boosted after a weaker-than-expected US jobs report on Friday left some economists anticipating only one interest rate hike from the Federal Reserve this year. Besides, appreciation in Indian rupee too aided sentiments. The rupee was trading strong by 11 paise at 66.43 at the time of equity markets closing on increased dollar selling by banks and exporters and due to capital inflows into the domestic equity market.
Sensex closed 460.36 points up at 25,688.86, while Nifty 50 settled 132.60 points up at 7,866.05.
In the 50-share index, Bosch, ZEEL, Bajaj Auto, YES Bank and Axis Bank closed higher between 3.45 per cent and 4.57 per cent. On the other hand, Dr Reddy’s Labs, HUL, HCL Tech, Idea Cellular and Cipla slid between 0.15 per cent and 0.93 per cent.
All the sectoral indices on the BSE ended in green with the BSE Bankex surging the most — 2.45 per cent, followed by BSE Capital Goods index (up 2.35 per cent) and BSE Telecom index (up 1.80 per cent).
Vinod Nair, head of research, Geojit BNP Paribas Financial Services, said, “The domestic market got a push as the disappointment in US job data showed that the economy is not out of the woods, which increased the hope that the FED will remain cautious towards the next rate hike. Additionally, the signs of recovery in fourth quarter earnings also steered an upturn in the market.”
Oil explorers gained with Oil and Natural Gas Corp and Reliance Industries gaining over a percentage point following strong gains in crude oil prices. Shares of sugar companies remained in focus on expectation of strong earnings for quarter ended March 31, 2016 (Q4FY16). Shares of auto companies too remained on buyers’ radar after domestic passenger car sales increased 1.87 per cent to 1,62,566 units in April as against 1,59,588 units in the year-ago period.
In scrip specific development, Thyrocare Technologies made a robust debut on bourses at Rs 662, a premium of 48.43 per cent to the Initial Public Offer (IPO) price. Shares of Thyrocare Technologies closed at Rs 618.10 on BSE.
Inox Wind shares gained over 3 per cent after the wind power solutions company on Friday reported a 77.5 per cent rise in consolidated net profit at Rs 209.2 crore for the quarter ended March 2016. The scrip closed 3.31 per cent up at Rs 249.80.
UltraTech Cement closed 1.62 per cent higher after the company stated that its board approved a proposal for raising foreign investment limit in the firm.
Asian equity markets ended mixed on Monday as disappointing trade data out of China tempered investor optimism stemming from higher oil prices and reduced expectations of Federal Reserve interest rate increases this year. The US economy added just 160,000 jobs in April, the fewest number of jobs in seven months, compared to economist estimates for a jump of about 200,000 jobs, casting doubts on whether the Federal Reserve will raise interest rates before the 8 November presidential election. China stocks fell sharply again, reaching eight-month lows, as investors saw hopes for a strong economic recovery fade and worried about fresh regulatory curbs on speculation. However, Japanese shares snapped a six-day losing streak as the yen’s rally paused after reassuring comments on the currency from Finance Minister Taro Aso. Hong Kong shares stayed firm, aided in part by the strong energy sector as crude oil prices soared on supply woes stemming from wildfires in Canada.
Markets through the day
3.30 pm: Sensex closed 460.36 points up at 25,688.86, while Nifty 50 settled 132.60 points up at 7,866.05.
3.01 pm: Hindustan Unilever on Monday announced its quarterly results for the fourth quarter ended March 2016. The FMCG major reported 7 per cent rise in net profit figures at Rs 1089.59 crore for the quarter under review against Rs 1018.08 crore in the corresponding quarter a year ago. Shares of HUL were trading 0.93 per cent down at Rs 845.05. Sensex was up 462 points at 25691. Nifty was up 135.10 points at 7,868.
2.20 pm: Equity mutual funds witnessed an inflow of Rs 4,438 crore in April, making it the highest in five months, primarily on account of strong retail participation.
2.08 pm: Sensex surged 402 points to 25,630.64. Nifty was trading 114.10 points up at 7,847.55.
1.45 pm: Suditi Industries shares advanced 4.87 per cent to Rs 29.05. The company on May 5 informed BSE that the company and YouWeCan (backed by cricketer Yuvraj Singh) have associated to create a clothing line under the YWC label. The association is created through the Brand licensing Company Black White Orange Brands Pvt. Ltd taking their strategic partnership with YouWeCan Ventures a notch higher. As a part of this exclusive deal, Suditi Industries Ltd will design and manufacture a licensed clothing line that will include lifestyle and fashion apparel for men, women & 4+ kids. The collection is expected to launch in stores and online by September this year.
1.07 pm: Microfinance player Ujjivan Financial Services, which witnessed robust demand for its recently-concluded IPO, will list shares on the bourses on May 10. Sensex was up 303 points at 25,531.
12.47 pm: Share of Tasty Bite Eatables rallied near 20 per cent on the BSE after the company reported 85 per cent year-on-year (YoY) jump in net profit at Rs 5.88 crore for the fourth quarter ended March 2016 (Q4FY16). Sensex was trading 312 points up at 25,541.
12.42 pm: Buoyed by sale of over 1 lakh vehicles equipped with auto gear shift, Maruti Suzuki India plans to offer this technologies in more models sold in the domestic market. Currently, the company has four models with AGS technology and plans to introduce two-pedal technologies like AGS, CVT and AT in other models too. In February 2014, MSI introduced AGS with hatchback Celerio, making it the first ever vehicle equipped with the technology in the country. Till date Celerio AMT vehicles contribute over 60 percent to total Celerio sales. Shares of Maruti Suzuki were trading 0.64 per cent up at Rs 3843.90.
12.16 pm: Goa Carbon shares surged after it informed bse that the company has resumed operations at its Bilaspur Unit in Chattisgarh from May 8, 2016. There would not be any financial impact due to the temporary shutdown of the company’s Bilaspur Unit on account of sufficient inventory of finished material.
11.38 am: Sensex was trading 356 points up at 25,585. Nifty was trading 102.05 points up at 7,835.
11.33 am: Shares of wind power solutions provider Inox Wind surged after the company reported a 77.5 per cent rise in consolidated net profit for the quarter ended March 31. The scrip was trading 4.43 per cent up at Rs 252.50.
10.58 am: ITC shares gained over 2 per cent in morning trade on Monday after it informed bourses on Sunday that cigarette factories are re-starting production in a phased manner.
10.36 am: Brokers said fresh buying by participants amid a mixed trend at other Asian bourses, tracking Friday’s rally on the US markets as a soft jobs report gave investors hope the Federal Reserve would keep any future interest rate hike small and slow, mainly influenced sentiment.
10.33 am: Arihant Superstructures will be launching a new project in Jodhpur named as ‘Aakarshan’, first of its kind experience for Jodhpur as the project aspires to give its users a unique experience of sky bungalows inspired by the imperial lifestyle of famous emperors of the World. Based in Chokhaat Jodhpur, Aakarshan offers first ever high rise living to the people of the city with seven imperial designed towers of 20 floors each. The project is spread across 6.5acres. The towers will have super spacious bungalows with options in the 2BHK, 3BHK and4 BHK. The company continues to maintain the norms of no transfer charges, no lock-in period and no escalation cost. The project will open up for launch on May 11, 2016. The 1st phase of 2 buildings would have 240 flats. Shares of Arihan Superstructures were trading 0.74 per cent up at Rs 82. Sensex was trading 305 points up at 25,533.90. Nifty was up 93.85 points up at 7,827.30
10.27 am: Arvind is in advanced talks to acquire Sequoia Capital-funded ecommerce company Freecultr, becoming the latest brickand-mortar store operator to snap up troubled online ventures. Shares of Arvind were trading 2.20 per cent up at Rs 282.80.
10.25 am: The rupee strengthened by 7 paise to 66.47 against the US dollar in early trade on Monday on increased selling of the American currency by banks and exporters.
10.04 am: Meanwhile, Thyrocare Technologies shares made a strong debut on bourses on Monday and got listed at Rs 662 on BSE with a premium of 48.43 per cent over its issue price of Rs 446.
9.39 am: Titan shares were trading 1.52 per cent down at Rs 358.55. India’s largest maker of branded watches and jewellery, Titan Company, will acquire a majority stake in Chennai-based Carat Lane Trading. The transaction is expected to be consummated by the middle of June 2016. Titan gets a majority of its revenue from its jewellery business Tanishq, which is primarily a brick-and-mortar chain. Carat Lane had initially started as an online jewellery store. The company has also developed omni-channel capabilities and currently has 13 stores across the country with plans to ramp up the segment significantly in the future.
The BSE Sensex was up 266.82 points at 25,495.05. Nifty was up 78.15 points up at 7,811.
9.26 am: Hester Biosciences shares surged nearly 13 per cent in the early trade on Monday after the company on Saturday reported a 57.14 per cent rise in standalone net profit at Rs 5.5 crore for the quarter ended March 31. The company had posted a net profit of Rs 3.5 crore in the same quarter last fiscal.
9.22 am: Godrej Properties is aiming to launch 15 new projects, including one in Noida, and sell its completed commercial assets worth Rs 1,500 crore during this fiscal as the realty firm seeks to achieve higher growth. Godrej Properties achieved a record sales bookings of Rs 5,038 crore in 2015-16 fiscal, up 88 percent from previous year, helped by sale of 4,35,000 sq ft of commercial space at Godrej BKC, Mumbai, for Rs 1,479 crore. The company is expected to launch a housing project in Noida also, comprising 4 million sq ft of saleable area in this fiscal. Shares of Godrej Properties were trading 1.17 per cent up at Rs 320.80.
9.16 am: Sensex was trading 156.99 points, or 0.62 per cent, up at 25,385.49. Nifty was trading 48.65 points up at 7,782.10. Inox Wind shares were quoting over 5 per cent up at Rs 255.80.
8.46 am: The BSE Sensex and NSE Nifty are likely to open in green on Monday tracking Nifty futures on the Singapore Stock Exchange and mixed global cues.
At 8.36 am (IST), SGX Nifty was trading 35.50 points, or 0.46 per cent, up at 7,787.
Asian peers, Hang Seng and Nikkei were trading higher by 0.56 per cent and 0.54 per cent, respectively. On the other hand, Shanghai were down by 1.94 per cent.
Shanghai stocks retreated nearly 2 per cent after data released over the weekend showed Chinese exports fell 1.8 per cent in April.
Japan’s Nikkei bucked the trend and rose 0.5 per cent as the yen’s recent surge appeared to halt for now.
US shares posted modest gains on Friday as the weaker-than-expected US jobs report fanned expectations that the Federal Reserve would have to hike interest rates at a very slow pace. The Dow gained 0.4 per cent and the S&P 500 edged up 0.3 per cent on Friday.
Share of IT companies will remain in focus on Monday. IT services major Cognizant on Friday reported a 15.2 per cent increase in net profit at $ 441.2 million for the March quarter. Cognizant’s net profit stood at $ 382.9 million in the first quarter of 2015.
This week, CPI and IIP numbers will be announced on May 12 and markets will react according to these numbers. Nirdosh Gaur, managing director and CEO, Moneypalm said, “If CPI numbers remains on lower levels like last month than markets expectations of rate cut will remain high.”