Ending five-day losing streak, the benchmark BSE Sensex today rebounded by over 214 points to 27,890.13 on value-buying in capital goods, pharma and banking stocks as sentiment improved after Saudi Arabia ended its military campaign in Yemen.
Sentiment were also buoyed after Finance Minister Arun Jaitley said GST bill will be passed in the current session of Parliament, brokers said.
However, retrospective taxation concerns and corporate earnings worries capped the gains in a volatile session, they added.
Market Outlook by Vinod Nair, Head-Fundamental Research, Geojit BNP Paribas Financial Services
Market has found an intraday support today in the set of negative flows coming from FII MAT issue and lack of performance trend from Q4 (important companies are likely to start). Added MET has provided a probability of 35% probability for below normal monsoon, which is negative. A immediate clarification about MAT will provide support to the market.
FIIs today met Minister of State for Finance Jayant Sinha and Revenue Secretary Shaktikanta Das on the Rs 40,000-crore tax demand by the government.
“If there is any help that can be given, we will see,” Sinha said. The government, however, refused to relent saying the remedy lies in judicial appeal.
In volatile movements, the 30-share BSE barometer gained over 151 points on value-based buying in bluechip stocks. But on reports of subdued monsoon forecast, the gauge slipped into the negative zone to touch the day’s low of 27,385.48.
Market Wrap Up by Alex Mathews, Head Research, Geojit BNP Paribas Financial Services
After opening with a positive note the markets continued its sell off in the first half. But the in the second half recovery was witnessed in the bourses. Nifty today opened at 8400 made an intraday high and low of 8449 and 8284 and finally closed at 8429, up around 51 points.
Going forward the markets may remain sideways for another couple of days before resuming its uptrend. Investors are mainly cautious as of the quarterly numbers but if there is a pleasant surprise the markets may move upwards.
The market breadth turned to flat as there were seen 1364 stocks advancing against 1379 stocks declining. The Nifty volatility index, India VIX stood at 17.2100 up around 1.05%.The major gainers for the day were Capital goods and Healthcare which closed up around 1.88% and 1.20% respectively. On the other side selling were seen in IT and Oil & gas sector, which ended down around 0.67% and 0.41% respectively.
In the stocks’ front, the major gainers were HUL and ACC which closed up around 4.19% and 4.13% respectively whereas the losers were Wipro and ONGC which closed down around 5.93% and 2.61% respectively.
The FIIs were net buyers on 21 April 2015, Tuesday on the cash markets segment, bought shares worth Rs 17488.73 crore. The DIIs on the other hand were also buyers on 21 April, bought shares worth Rs 1364.83 crore in the capital markets segment.
The fall in the energy stocks made the European markets to drop after a two day rally. The US index futures were also trading lower.
HDFC Bank, HCL- Infosystems, Gujarat gas, International paper, Cairn, M&M finance, Cyeint, SQS BFSI, Advanta and RSystems are some of the major ones which may announce their quarterly numbers tomorrow.
A flurry of buying in the last one hour boosted the index to the day’s high of 27,947.26, before settling with a gain of 214.19 points or 0.77 per cent at 27,890.13.
On similar lines, the 50-share NSE Nifty, recaptured the crucial 8,400-mark by gaining 51.95 points or 0.62 per cent, to close at 8,429.70.
Despite, subdued monsoon forecast, shares of Hindustan Unilever topped the Sensex gainers by surging 3.59 per cent.
Shares of Sun Pharmaceutical Industries also made a comeback today to close 1.63 per cent higher at Rs 967.15, a day after Japan’s Daiichi Sankyo sold its entire in the company for Rs 20,025 crore.
Other gainers on the Sensex included, L&T 3.29 per cent, Axis Bank 3.19 per cent, Dr Reddy’s 3.04 per cent, M&M 2.03 per cent, Tata Power 1.61 per cent and HDFC 1.60 per cent.
However, Shares of Wipro plunged over 6 per cent to Rs 544 after company’s earnings failed to enthuse investors.
Fresh foreign capital inflows into equity market also boosted the market sentiment. Foreign portfolio investors (FPIs) bought shares worth net Rs 17,488.73 crore, yesterday.
Sectorally, the BSE capital goods gained the most by rising 1.88 per cent, followed by healthcare 1.20 per cent, Banking index 0.78 per cent and FMCG 0.52 per cent.
Firming trend in other Asian and falling crude prices overseas after Saudi ended its military action in Yemen have positive impact, trades said.