The benchmark BSE Sensex today reversed its three-session fall by rising 219 points to settle at 27,396.38 as blue-chips ICICI Bank and Maruti Suzuki jumped on better-than-expected earning numbers.
Besides, World Bank today said Indian economy has taken strong strides towards higher growth and enhanced stability, aided by a supportive external environment, in particular the sharp decline in oil and commodity prices.
The multilateral lending body said India will grow 7.5 per cent this fiscal year. “Growth has accelerated, inflation has declined, the current account deficit has narrowed and external reserves have increased,” the World Bank noted.
Moreover, recovery in the rupee that strengthened to Rs 63.12 against the dollar (Intra-day) too boosted sentiments.
Snapping its three-day losing streak, the Sensex opened on a strong footing at 27,215.61 and rose further to 27,365.72 in early trade on emergence of value-buying.
However, it succumbed to profit-booking and slipped into the negative zone to touch a low of 27,073.25, but staged a strong comeback on a flurry of buying in last one hour to hit the session’s high of 27,482.14 before settling 219.39 points or 0.81 per cent higher at 27,396.38.
Stocks of ICICI Bank climbed 8.2 per cent to at 326.65, its biggest single session gain since September 2013.
Country’s largest carmaker, Maruti Suzuki share continued its yesterday’s winning streak and gained 4.93 per cent to Rs 3,826.65 after its Q4 earnings beat estimates.
Market Outlook by Mr. Vinod Nair, Head-Fundamental Research, Geojit BNP Paribas Financial Services Ltd – April 28, 2015
India is continuing in the consolidation phase since 9100 (Nifty high). Post the last months (March) expiry, market had found an intermediary support in the 100point range of 8250-8350. And recently at the end of April month expiry, market has consolidated further below the last immediate support. We believe the near-term trend was led with smart short-term money. Hence the F&O expiry (30th April) is impacting the market. Having said that, FED meet on 28-29th April, MAT issue and poor Q4FY15 leading to earnings downgrade is concerning the market.
However, taxation concerns and corporate earning worries limited the gains in choppy session, brokers said.
The 50-share NSE Nifty gained 71.80 points or 0.87 per cent to close at 8,285.60. Intra-day, it regained the 8,300-mark to touch day’s high of 8,308 and a low of 8,185.15.
Other gainers on the Sensex included, Tata Motors 2.43 per cent, BHEL 2.76 per cent, Bharti Airtel 2.26 per cent, NTPC 2.09 per cent, Axis Bank 2.08 per cent, SBI 1.97 per cent, Hero MotoCorp 1.39 per cent, HDFC 1.31 per cent, Hindalco 1.04 per cent, M&M 1.02 per cent and Tata Steel 0.92 per cent.
However, shares of ITC, Infosys, Coal India, GAIL, Bajaj Auto, HDFC Bank, Hind Unilever and L&T continued to face selling pressure and limited Sensex’s gains.
Meanwhile, foreign portfolio investors sold shares worth Rs 1,749.33 crore yesterday, as per provisional data from stock exchanges.
Sectorally, the BSE bankex gained the most by surging 2.41 per cent, followed by auto 2.24 per cent, realty 1.60 per cent, power 1.40 per cent and infrastructure 1.21 per cent.
Globally, mixed trend was seen in other Asian markets and lower opening in European markets.
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