The benchmark BSE Sensex today closed 148 points up at 27,957.50 after briefly staying above the psychological 28K-level on better-than-estimated corporate earnings and firm Asian cues.
Similarly, the broader 50-issue CNX Nifty rallied to a high of 8,489.55, just ten points shy from 8,500-mark, before settling at 8,458.95.
IT, pharma, capital goods, refinery and tech counters attracted heavy buying while shares of consumer durable, banking, realty and metal sectors witnessed profit-booking.
Market Outlook by Vinod Nair, Head-Fundamental Research, Geojit BNP Paribas Financial Services
This week, we saw markets edging higher on rate cut hopes despite volatility brought by Q4 results of heavyweights. Such volatility is likely to continue as about 40% of Sensex constituent’s results are awaited. This might impact the pace of Index moving to higher levels as the result expectation balance 40% are low. But, on the positive side, FII outflow has slowed down this week and DIIs have been active.
The 30-share barometer moved in a range of 28,071.16 and 27,828.61 before ending at 27,957.50 — a level not seen since April 17, 2015 when it had settled at 28,442.10 — showing a rise of 148.15 points or 0.53 per cent.
HDFC was the top gainer from the 30-share Sensex pack with a rise of 2.51 per cent while TCS came in second with a surge of 2.42 per cent.
Market Wrap Up by Alex Mathews, Head Research, Geojit BNP Paribas Financial Services
The markets today opened with a positive and remained positive without much movement due to decline in India VIX, which is down at around 2.67% indicates stable outlook ahead of F&O expiry next week.
Nifty closed at 8458 up around 37 points. But the market breadth stood negative as there were seen 1205 stocks advancing against 1511 stocks declining. The Nifty volatility index, India VIX stood at 16.9475 down around 2.67%.
Heavy weight banking stock SBI today came out with its earnings, where the net profit rose 23% to Rs 3742 crore for the quarter ended March 31, 2015 as compared to Rs 3040 crore in the corresponding period last year. The total income for the period also increased 15% to Rs 48616 crore from Rs 42443 crore. The gross non-performing assets percent in the quarter improved to 4.25% from 4.95%.
IT and Healthcare were the major gainers in the sectorial front for the day which ended up around 0.91% and 0.86% respectively. The losers on the other end are Consumer durables and Banking sector which ended down around 0.68% and 0.42% respectively.
In the stocks’ front, the major gainers were TCS and HDFC which closed up around 2.59% and 2.47% respectively whereas the selling was seen in Idea and SBIN closed down around 3.08% and 2.88% respectively.
The FIIs were sellers in the cash market segment on 21 May 2015, Thursday, sold shares worth Rs 186.26 crore. The DIIs on the other hand were buyers on 21 May, bought shares worth Rs 404.01 crore in the capital markets segment.
The European markets were little changed and the US index futures were trading with a green note.
On Monday, companies like Alphageo, Banco Products, Atlanta, BIL, Bombay dyeing, Eclerx, Canara Bank, Future retail, Igrashi motors, Inox leisure, Jyothy labs, Pricol, Wabag and Zandu realty may announce their earnings.
Shares of banking giant SBI reacted downwards after initial smart gains on profit-booking despite the lender reporting better-than-expected fourth quarter earnings.
SBI today reported 23 per cent jump in standalone net profit for the fourth quarter ended March 2015 at Rs 3,742.02 crore on improvement in asset quality.
Market View by Gaurav Jain, Director, Hem Securities
This week, we saw markets edging higher on rate cut hopes despite volatility brought by Q4 results of heavyweights. Such volatility is likely to continue as about 40% of Sensex constituent’s results are awaited. This might impact the pace of Index moving to higher levels as the result expectation balance 40% are low. But, on the positive side, FII outflow has slowed down this week and DIIs have been active.
Meanwhile, on a weekly basis, the Sensex shot up by 633.80 points, or 2.32 per cent, completing three weeks of gaining streak.
Stocks get that Friday feeling as stimulus trumps growth concern
Reuters – Global stocks rose and bond yields fell on Friday, as investors shrugged off slowing global growth and focused instead on the continued stimulus provided by the world’s major central banks.
Wall Street’s record high on Thursday lifted Asian stocks on Friday, a day that will be packed with key European and U.S. economic data as well as speeches from Federal Reserve chair Janet Yellen and European Central Bank president Mario Draghi.
China’s main index leapt nearly 3 percent to a fresh 7-year high, rounding off a weekly gain of 8 percent, its best week this year. Boosted by hopes of further central bank stimulus, it has risen 45 percent in only six weeks.
European shares struggled to match that, but the leading index of European shares was still poised for its biggest gain in six weeks and Germany’s DAX its best week since January.
A batch of soft manufacturing data on Thursday from the United States, China and Germany pointed to sluggish global growth but cemented investor hopes that central banks will continue to do all they can to support activity.
To that end, Yellen and Draghi will take centre stage on Friday. Earlier this week Fed meeting minutes appeared to push the timing of the first U.S. rate hike out to late 2015, while the ECB’s Benoit Coeure said the ECB could increase its bond purchases in the near-term.
“Risk assets continue to edge higher … and Draghi is set to make a speech. Listen out for further assurance of the QE program running until September 2016 but more importantly any clues as to inflation expectations,” said Angus Campbell, senior markets analyst at FxPro in London.
In early trade the FTSEuroFirst 300 index, Germany’s DaX and France’s CAC 40 were all flat on the day. Britain’s FTSE 100 was up 0.3 percent.
Earlier, MSCI’s broadest index of Asia-Pacific shares outside Japan rose 1 percent and Japan’s Nikkei rose 0.3 percent. Japanese stocks have been boosted this week by data showing stronger-than-expected first quarter growth. The Bank of Japan kept its policy as widely expected.
U.S. futures pointed to a slightly positive open on Wall Street, after the S&P 500 inched up 0.2 percent to close at a new all-time high overnight on Thursday.
BONDS STEADYING
On the data front, U.S. inflation for April is the main event. Price pressures are expected to remain muted, giving the Fed more breathing space in terms of the timing of what will be its first rate hike since June 2006.
The U.S. economy has shown patchy signs of strength and its recovery has not been as robust as expected. Soft U.S. data released overnight – weaker-than-expected existing home sales, manufacturing sector and U.S. Mid-Atlantic business activity – appeared to vindicate the Fed officials’ cautious policy stance.
U.S. Treasury yields fell in wake of the soft economic indicators, helping nudge the dollar away from recent highs. The euro rose 0.4 percent to $1.1160. It had hit a three-week low of $1.1062 earlier this week amid Greek debt concerns and was poised to lose 2.7 percent on the week, snapping a five-week winning streak.
The dollar also eased slightly to 120.75 yen after losing 0.3 percent overnight to end a five-day winning run. The greenback scaled a two-month peak of 121.49 midweek on bets the currency was ready for a run higher after weeks in the doldrums.
The benchmark 10-year German bond yield fell three basis points to 0.60 percent and the 10-year U.S. yield slipped back to 2.17 percent.
Analysts at Barclays noted “tentative” signs that the euro zone bond market was stabilizing after the recent rout that saw Bund yields rocket to 0.80 percent from 0.05 percent. That high is unlikely to be retested any time soon.
“Were financial conditions to tighten further, the ECB could respond more forcefully,” they said in a note on Friday.
In commodities, U.S. crude took a breather, flat on the day at $60.66, after surging nearly 3 percent overnight on data that eased supply glut concerns and fighting in Iraq.
Brent was flat at $66.53 a barrel after rising 2.3 percent.