SE Sensex jumped nearly 1 percent on Thursday on hopes Prime Minister Narendra Modi would be able to steer a bill ...
Equities rebounded from 1-month lows today with benchmark Sensex surging 271 points, its first rise in four sessions, as investors went on a buying spree in beaten-down shares enthused by IMF upping India growth forecast and on hopes of insurance bill passage in Parliament.
Buying was also seen ahead of macro data release like IIP for January and retail inflation for February later today.
The BSE Sensex rallied 271.24 points to end at 28,930.41 and the NSE Nifty reclaimed its 8700-mark as it gained 76.05 points to end at 8,776.00.
Fears over an imminent rise in US interest rates had wreaked havoc in global financial markets recently. Indian benchmark indices cracked about 2.7 per cent in three days.
Market Commentary by Vineeta Mahnot, Equity Research Analyst, Hem Securities
A relief rally boosted by IMFs positive view on India at the bourses after three consecutive weak trading sessions with Sensex climbing about 271 points to close at 26930 supported by Sesa Sterlite, NTPC, Hindalco Industries, Sun Pharma, ICICI Bank, BHEL and ITC. Metals, power, infra, auto and FMCG stocks were on the buyers side. Bajaj Auto, HUL, HDFC Bank, M&M, Dr. Reddy’s and Coal India were among the draggers. Investors stay cautious ahead of IIP and CPI numbers. Pharma stocks were in focus on account of news that the government may establish a separate Ministry for the pharmaceuticals sector, which would comprise all departments that deal with issues related to the industry. Market breadth was positive with 1649 advances against 1220 declines on the BSE.
Analysts said passage of the insurance bill could raise optimism that other stalled reforms would also move ahead.
While the government has promulgated an ordinance to hike FDI in insurance business from 26 per cent to 49 per cent, a bill in this regard is scheduled to be tabled in Rajya Sabha today. The bill was passed by the Lok Sabha last week.
After a strong start, key indices maintained its buoyancy throughout as confident investors lapped up shares in power, realty, consumer durables, FMCG, capital goods and auto.
Additionally, mid-cap and small-cap stocks surged.
“Besides firm Asian markets, sentiments were up-beat with IMF’s latest report raising its forecasts of India’s economic growth to 7.2 per cent in the current fiscal year, compared to 5.6 per cent predicted earlier,” said Jayant Manglik, President-retail distribution, Religare Securities.
The Sensex opened higher at 28,798.61 and traded between 28,971.01 and 28,772.71 before concluding at 28,930.41, showing a smart rise of 271.24, or 0.95 per cent.
The 50-share broader CNX Nifty also bounced back by 76.05 points, or 0.87 per cent to end at 8,776.00.
Shares linked to insurance saw good activity with Reliance Capital leading the charts with over 10 per cent gains. Max India, Aditya Birla Nuvo and Bajaj Finserv also moved up.
The dollar edged closer towards parity with the euro today in the backdrop of the European Central Bank kicking off its stimulus programme this week, while Asian equity markets recovered slightly from a recent sell-off.
Bank of Korea slashing its base rate for the first time in five months by 25 basis points to spur sluggish growth also helped key Asian indices. Benchmarks in China, Hong Kong, Japan and Taiwan rose by 0.34 to 1.78 per cent while those in Singapore and South Korea fell by 0.38 to 0.52 per cent.
European stocks were trading lower in late morning deals.
France’s CAC was down by 0.19 per cent and Germany’s DAX by 0.29 per cent while the UK’s FTSE was up by 0.87 per cent.
Back home, 24 out of 30 Sensex-based scrips closed up.
Sesa Sterlite was the top gainer with a rise of 3.63 per cent, NTPC 3.54 per cent, Hindalco 3.37 per cent, Sun Pharma 2.46 per cent, Tata Motors 2.35 per cent, ITC 2.35 per cent, Tata Steel 2.32 per cent, BHEL 2.31 per cent, Bharti Airtel 1.96 per cent, ICICI Bank 1.57 per cent and Infosys 1.57 per cent.
However, Dr Reddy’s declined by 1.40 per cent, Coal India by 1.23 per cent, M&M 1.06 per cent and Bajaj Auto 1.01 per cent among others.
Total market breadth was positive as 1,643 stocks rose while 1,229 lost ground and 141 held stable. The total turnover was up at Rs 3,726.88 crore from Rs 3,495.84 crore yesterday.
Market Outlook by Vinod Nair, Head-Fundamental Research, Geojit BNP Paribas Financial Services
CPI is likely to be in-line with expectation hence we cannot expect more immediate action by RBI. This is unlikely to provide any immediate benefit to banks and interest sensitive sectors. Also the Q4FY15 result expectation for banks has been lowered. Today the overall trend was positive as the market expects insurance bill to be passed. The Budget Session is moving ahead with bold actions, the concerns is to pass Coal and Land bills in Rajya Sabha. We continue to believe that the trigger for India will depend on the final outcome from Budget Session.
Market Wrap Up by Alex Mathews, Head Research, Geojit BNP Paribas Financial Services
Markets recovered today on the back of low level buying after the continuous sell-off in the past few trading sessions. Also the positive Asian markets provided support to the markets. The Asian front was up on the new of a record low interest rate by the South Korean central bank.
Nifty closed at 8776 up around 76 points. The market breadth changed to positive from negative as there were seen 1640 stocks advancing against 1231 stocks declining. The Nifty volatility index, India VIX stood at 14.7500 down around 2.51%.
The Mid cap and small cap indices closed higher, up around 1.91% and 0.90% respectively.
All the sectors ended in green and the major gainers for the day were Power and Realty, closed up around 2.27% and 1.53% respectively.
In the stocks’ front, the gainers were Cairn and SSLT which closed up around 4.83% and 4.57% respectively and on the other end the sellers were Tech Mahindra and M&M which closed down around 2.11% and 1.53% respectively.
The FIIs were sellers in the cash markets segment, sold shares worth Rs 444.65 crore on Wednesday, 11 March 2015. On the other hand the DIIs were also net sellers on 11 March 2014, sold shares worth Rs 338.96 crore as per the provisional data from the stock exchanges.
The European markets were little changed and the US index futures were trading flat.