Benchmark indices rose to their highest in over two-and-a-half months as bank and finance companies’ stocks rallied on the back of good earnings, sending NSE Nifty above 8,600 points and BSE Sensex above 27,700 points.
Further, the surge was aided by the hope that the government may provide incentives to spur the economy in order to counter the impact of demonetisation.
BSE Sensex was trading at 27,725.14 points, up 1.28% after rising to a high of 27,733.07 points. NSE Nifty was at 8,605.85 points, up 1.53% after rising to a high of 8,609.7 points. Both the indices were at their highest since November 1.
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Kotak Mahindra was the top gainer on Nifty, up 6.89% at Rs 794.6 after the lender announced its fiscal third quarter net profit rose 39% on-year and asset quality improved. HDFC Ltd gained 4.35% to Rs 1,336.4 on hopes that the demonetisation has not hurt the economy as much as was being feared earlier.
Among other top gainers were BPCL, Bosch and Adani Ports, each up between 4.2% and 5%.
Wipro was the top loser ahead of its quarterly financial results later today on concerns that the new US President Donald Trump’s visa policies and stress on local jobs may hurt future earnings. Wipro was down 1.69% at Rs 473.35.
Bharti Airtel’s shares recovered a lot of early losses but were still the second top loser, after the company reported a worse than expected fall in net profit in fiscal third quarter. Shares were trading at Rs 311.5, down 1.58% from the previous close, after falling to a low of Rs 305.
CLSA has maintained “high conviction buy” on Bharti Airtel with a target price of Rs 393, while Fitch Ratings is also bullish on the company as it expects Airtel to benefit later when Reliance Jio starts losing customers upon the start of paid service. Fitch further said that while Reliance Jio’s will use some tools to retain subscribers, Airtel’s position and strength will help it face competition and offset revenue impact.
All the major sectoral indices were sharply up, barring marginal losses in IT and technology indices. Banks, Consumer Durables, Automobiles, Capital Goods, Energy and Metals were trading with handsome gains.