The benchmark BSE Sensex continued its post-Budget rally for the second straight day and surged over 2 per cent to get past the 24,000-mark on Wednesday in anticipation of policy easing by RBI amid positive global markets. Heavy buying in banking stocks on account of the Reserve Bank of India’s easing capital recognition norms for banks also supported overall market sentiments.
The 30-share index Sensex closed 463.63 points up at 24242.98, while the 50-share index Nifty settled 146.55 points up at 7368.85.
In the Nifty 50 pack, public sector lender State Bank of India surged the most — 12.56 per cent, followed by ICICI Bank (up 7.59 per cent), Punjab National Bank (up 7.54 per cent), Hindalco (up 7.33 per cent) and Bank of Baroda (up 6.43 per cent). On the other hand, Mahindra & Mahindra, Sun Pharma, ITC and Coal India slid 5.29 per cent, 1.96 per cent, 1.80 per cent and 1.75 per cent, respectively.
Barring the BSE FMCG index (down 0.11 per cent), rest all other sectoral indices on BSE closed in green. The BSE Realty index, BSE Bankex and BSE IT index gained 5.05 per cent, 4.92 per cent and 2.49 per cent, respectively.
Hiren Dhakan, associate fund manager, Bonanza Portfolio, said, “Markets opened for the day on a positive note and remained bullish through the day’s trading session on the back of positive cues from the global markets.”
Chandan Taparia, derivatives analyst, equity research, said, “Nifty 50 index has made a double bottom with positive divergence on indicators which helped it to move higher led by short covering and fresh support based buying activities.”
Shares of real estate companies higher for the second straight trading sessions after the Union Budget presented by Finance Minister Arun Jaitley has assigned special thrust to rural India, infrastructure, real estate and the housing sector. Unitech jumped 10.68 per cent, followed by DLF (up 9.75 per cent) and Indiabulls Real Estate (up 6.07 per cent).
Overall market breadth for the day remained positive and advances to declines ratio for Nifty stood at 40:10 for the day.
Asian peers closed on Wednesday, as overnight gains in oil prices and signs of improvement in the US economy helped ease investor worries about slowing global growth. Hang Seng, Nikkei and Shanghai closed up by 3.07 per cent, 4.11 per cent and 4.26 per cent, respectively.
Markets through the day
3.30 pm: The 30-share index Sensex closed 463.63 points up at 24242.98, while the 50-share index Nifty settled 146.55 points up at 7368.85.
3.04 pm: Inox Wind was trading in green after the company bagged an order to set up a 20 MW wind power project in Madhya Pradesh. The scrip was up 3.07 per cent at Rs 238.50. Sensex was up 414 points at 24,193.
3.00 pm: Nifty was up 142.80 points at 7,365.10. The 30-share index was up 440 points at 24,219. There were 24 stocks advancing against 6 stocks declining on the index. State Bank of India shares were trading 10 per cent up at Rs 178.40.
2.37 pm: Sensex was trading 488.96 points up at 24,268.31. HCL Tech shares gained over 2 per cent after it informed BSE that it has signed a five year Next–Generation Information Technology Outsourcing (Next–Gen ITO) contract with Husqvarna AB, a leading manufacturer of outdoor power products including robotic mowers, garden tractors, chainsaws and trimmers.
2.06 pm: Meanwhile, Gayatri Projects informed BSE that the company has made a strong foray into the fast-growing railway EPC sector, by winning a Rs 4,744 crore contract for designing and building the Iqbalgarh – Vadodara section of the Western Dedicated Freight Corridor (DFCC) in a consortium with Sojitz Corporation and L&T Ltd. Shares of Gayatri Projects were trading 5.04 per cent up at Rs 623.10.
1.53 pm: Sensex was up 382 points at 24,161. Asian peers remained firm. Hong Kong stocks jumped over 3 per cent on Wednesday to their highest level in seven weeks, with investor sentiment lifted by strength in global markets as well as a more than 4 per cent jump in mainland China shares.
1.45 pm: Nitesh Estates shares were trading 1.26 per cent up at Rs 12.01. Nitesh Estates’ wholly owned subsidiary has signed a Joint Development Agreement (JDA) for a residential project on a plot of land measuring around 5 acres. The project is located in Yelahanka, North Bangalore. The new project too will be a residential development and is expected to generate revenue of Rs 175 crore over the next four years for the company. Sensex was trading 371 points up at 24,151.
1.13 pm: Oil marketing companies shares were trading firm. IOC, BPCL and HPCL were trading higher by 2.38 per cent, 1.19 per cent and 3.28 per cent, respectively. OMCs taking cues from the global oil market conditions have cut non-subsidised or market-priced domestic cooking gas (LPG) by Rs 61.5 per 14.2-kg bottle, which consumers buy after exhausting their quota of subsidised cooking fuel. This is the second reduction in rates of non-subsidised or market-priced LPG. Following the cut, non-subsidised cooking gas (LPG) now costs Rs 513.50 per 14.2-kg cylinder in Delhi as against Rs 575 previously. Non-subsidised LPG price was last cut on February 1 by Rs 82.5 per 14.2-kg bottle. However, the oil firms have hiked the prices of the Jet fuel or aviation turbine fuel (ATF). In Delhi, it has been raised by Rs 4,174.49 per kilolitre, or 11.88 percent, to Rs 39,301.31 per kilolitre. The hike comes on back of a steep 12 per cent cut in rates from February 1 by Rs 4,765.5 per kilolitre. Jet fuel prices constitute over 40 per cent of an airline’s operating cost. Rates vary from airport to airport depending on the local sales tax or value-added tax (VAT).
1.06 pm: Meanwhile, Cement stocks extended gains for the second day after finance minister Arun Jaitley announced higher investment on infrastructure sector in the Union Budget 2016-17 early this week. JK Cement, Shree Cement and UltraTech Cement were trading higher by 0.63 per cent, 2.63 per cent and 3.79 per cent, respectively.
12.44 pm: Mahindra & Mahindra (M&M) shares were trading 3.89 per cent down at Rs 1,217. Meanwhile Edelweiss in a research report said, “Management of M&M indicated margin will be impacted due to expiration of excise duty benefits at Haridwar plant in Q4FY16 by 100 basis points. Hence, we revised down our FY17/18E EPS by around 5 per cent each. We have maintained ‘Buy’ on M&M with SOTP‐based target price of Rs 1,337.”
12.30 pm: Sensex was trading 395 points up at 24,175. Meanwhile, Nikhil Kamath, co-founder and director, Zerodha said, “Markets look to have turned around in the near term, the intermediate trend now looks to be bullish.”
12.23 pm: Inox Leisure shares were trading 2.83 per cent up at Rs 192.70. The company has commenced the commercial operations of a Multiplex Cinema Theatre, taken on Leave & License basis, and located at Mall De Goa, Alto Porvorim, Goa with effect from March 2, 2016. The said Multiplex Cinema Theatre has 4 screens and 911 seats. Sensex was trading 395 points up at 24,174.
12.10 pm: Mahindra Holidays shares were trading 3.82 per cent up at Rs 383. Mahindra Holidays and Resorts India received approval from the Delhi High Court to merge its subsidiary Competent Hotels with itself. The company also has the approval of various other high courts to merge subsidiaries Competent Hotels, Divine Heritage Hotels and Holiday on Hills Resorts with itself. The mergers will be effective after filing a copy of the orders with the respective Registrar of Companies. Sensex was up 408 points at 24,187.
12.06 pm: Senses was trading 406 points up at 24,185. Jindal Steel & Power shares (JSPL) were trading 3.84 per cent up at Rs 58.10.
11.32 am: Sensex was up 399 points at 24,178. Nifty was trading 135.60 points up at 7,357. Wockhardt shares were trading 10 per cent up at Rs 882.95.
11.04 am: Shakti Pumps shares were trading 13.75 per cent up at Rs 144.80. The scrip soared over 50% in the last 3 trading session till March 2.
10.56 am: Sensex was up 390.84 points at 24,170. Nifty was trading 132.70 points up at 7,355.
10.47 am: DCB Bank shares were trading 3.97 per cent up at Rs 76. DCB Bank has acquired an equity stake of 5.81 per cent for Rs 9.99 crore in Annapurna Microfinance. Annapurna is a growing and successful microfinance institution (MFI) focused primarily in rural locations of Odisha, Chhattisgarh & Madhya Pradesh. The bank has 14 branches in Odisha, 6 branches in Chhattisgarh and 14 branches in Madhya Pradesh.
10.44 am: SML Isuzu has reported 2.96 per cent jump in February sales figures. The company has sold 1,010 vehicles during February, 2016 against 981 vehicles sold in February, 2015. Shares of SML Isuzu were trading 4.26 per cent up at Rs 751.75. Sensex was up 385 points at 24,164. Nifty50 index was up 123 points at 7,345.
10.20 am: Sensex was up 449 points at 24228.16. According to market experts, pick-up in buying momentum, tracking a firming trend in the rest of Asia, following the overnight rally in the US on improved economic data, helped Sensex and Nifty to regain their crucial levels.
10.05 am: Sensex was up 375.36 points at 24,154.71. Now the index is trading over 1,000 points up since budget 2016. Post budget, Vidya Bala, head of mutual fund research, FundsIndia said, “The budget has plenty of calibrations that can boost economic growth and therefore benefit market. This, however, means some short-term pain such as still-high corporate tax rate for companies. If you are looking for immediate stock market boost from the budget, this budget may not provide it. However, incremental boosts are better than sweeping changes. It provides markets to understand, assimilate and respond. That also means sufficient time and opportunities for investors to plough their money.”
9.54 am: Public sector lender such as Bank of Baroda (BoB), State Bank of India (SBI) and Punjab National Bank (PNB) surged over 5 per cent in the early trade on Wednesday after the Reserve Bank of India (RBI) on Tuesday announced amendments to recognise more balance sheet items as common equity tier-I capital which will help unlock up to Rs 35,000 crore for state-run lenders impacted by asset quality troubles. The BSE Bankex was trading 3.76 per cent up at 16,989.84. Sensex was up 355 points at 24,134.
9.38 am: The rupee added to its gains by rising 11 paise to a fresh three-week high of 67.74 against the dollar on Wednesday on continued selling of the US currency by banks and exporters and a robust opening in the equity market. Sensex was up 328 points at 24,107. Nifty was trading 100 points up at 7,322.30.
9.16 am: Sensex was trading 431 points up at 24,210. Nifty was up 112 points at 7334.35. In the 50-share index, Bank of Baroda, State Bank of India, Punjab National Bank, Vedanta and Adani Ports were up between 4.40 per cent and 11.61 per cent.
9.15 am: The benchmark index BSE Sensex opened 265.61 points up at 24,044.96 on the back of firm global cues, while NSE Nifty index opened 99.40 points up at 7,321.70.
8.34 am: Domestic equity markets are likely to open higher on Wednesday tracking Nifty futures on the Singapore Stock Exchange (SGX Nifty) and firm global markets.
At 8.14 am, SGX Nifty was trading 107 points, or 1.46 per cent, up at 7,343.
Asian markets look set to test February highs on Wednesday as signs of recovery in the US manufacturing sector and gains in oil prices eased worries about a global slowdown and pushed US stocks sharply higher. Hang Seng, Nikkei and Shanghai were trading up by 2.38 per cent, 3.95 per cent and 1.10 per cent, respectively.
Wall Street enjoyed its strongest day in a month on Tuesday, led by financial and technology stocks after encouraging US factory and construction data suggested the world’s biggest economy was regaining momentum. The Dow Jones industrial average rose 347.45 points, or 2.1 percent, to 16,863.95, the S&P 500 gained 45.97 points, or 2.38 per cent, to 1,978.2 and the Nasdaq Composite added 131.65 points, or 2.89 per cent, to 4,689.60.
The BSE Sensex on Tuesday closed at 23,779.35, climbed 777.35 points, or 3.38 per cent. Tuesday’s gain was the biggest single-day rise since May 18, 2009 when the 30-share barometer had jumped 2,110.79 points.
The NSE Nifty 50 index closed 235.25 points, or 3.37 per cent, higher at 7,222.30.
Shares of IRB Infrastructure and Tata Motors will remain in focus on Wednesday. Tata Motors on Tuesday increased prices of its passenger vehicles by up to Rs 35,000 with immediate effect to offset the impact of infrastructure cess proposed in the Budget 2016-17.
IRB Infrastructure Developers on Tuesday informed BSE that the government have decided to cancel the bid process for Jammu & Kashmir project without assigning any reasons.
(With inputs from agencies)