The BSE Sensex and NSE Nifty extended gains for the third consecutive day and gained nearly 2 per cent on Thursday supported by a rally in capital goods stocks amid F&O expiry.
The BSE Sensex and NSE Nifty extended their gains for the third consecutive day and gained nearly 2 per cent on Thursday supported by a rally in capital goods stocks amid F&O expiry. Sensex closed 485.51 points, or 1.88 per cent up at 26366, while Nifty index settled higher by 134.75 points at 8,069.65 for the first time since November 2015.
In the 50-share index, Larsen & Toubro soared 13.89 per cent to Rs 1,471, followed by State Bank of India (up 5.40 per cent), BHEL (up 5.06 per cent), Axis Bank (up 3.76 per cent) and Idea Cellular (up 3.33 per cent). On the other hand, Bharti Infratel, HCL Technologies, Eicher Motors, Bosch and Reliance Industries slid 1.75 per cent, 1.01 per cent, 0.71 per cent, 0.57 per cent and 0.41 per cent, respectively.
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Sectorwise, the BSE Capital Goods index, BSE Bankex and BSE Realty index rallied 8.78 per cent, 3.97 per cent and 2.22 per cent, respectively. Rest all other sectoral indices also ended the day in green.
Vinod Nair, head of research, Geojit BNP Paribas Financial Services said, “Nifty crossed the important level of 8,000-mark which was acting as an impediment over the last six months. Improved fourth quarter earnings of index heavyweights provided the essential fire to the rally. Global market rallied amid the rise in oil prices due to the drop in US crude inventory and signs of economic stabilization. Global investors are positively eyeing the FED chair speech and US GDP data on Friday which will improve the prospects for FED rate hike.”
In a scrip specific development, Larsen & Toubro shares soared after the company posted an upbeat 19 per cent rise in fourth-quarter profit and said it expects orders to increase 15 per cent in the year to March 2017.
Bajaj Auto gained 0.81 per cent after the two-wheeler maker on Wednesday reported a 29 per cent rise in its March-quarter net profit.
However, Aditya Birla Fashion and Retail tanked 6 per cent after March-quarter loss widened to around Rs 110 crore.
Asian equity markets ended mostly higher on Thursday as gains in oil prices and positive cues from overseas markets outweighed concerns about a slowdown in Chinese growth and prospects of higher interest rates in the US. The yen saw a sudden spike on the eve of G7 summit talks, with leaders of the world’s seven major industrial democracies expected to promote monetary, fiscal and structural policies to spur growth in their communique, when the summit ends on Friday. Also, Fed Chair Janet Yellen speaks Friday on the economy at Harvard and her comments could provide further clues about whether the central bank would raise interest rates in June.
Markets through the day
3.30 pm: Sensex closed 485.51 points, or 1.88 per cent up at 26,366, while Nifty index settled higher by 134.75 points at 8,069.65 for the first time since November 2015.
3.18 pm: Sensex surged over 500 points in the late afternoon trade. At 3.18 pm, the index was trading 511 points, or 1.98 per cent up at 26,392.61.
2.28 pm: The BSE Capital Goods index was trading 7.36 per cent up at 14,261. The index jumped after the government approved the country’s first-ever policy for the capital goods sector and said the thrust on demand creation, technology depth and exports will help address the challenges faced by the sector.
1.43 pm: Sensex surged 315 points to 26,196. However, Asian markets were trading mostly in red at this point of time with Chinese market edging lower with sentiment frail after a series of disappointing economic data earlier this month and fears that policymakers may be taking a more cautious stance on further stimulus as debt levels grow. Back home, Capital Goods index surged as government approved the country’s first ‘National Capital Goods Policy’, which seeks to treble the production of capital goods in 10 years to Rs 7,50,000 crore and raise employment in the sector almost four times to 30 million. Shares of oil exploration and production companies rose as crude oil prices gained.
1.15 pm: Meanwhile Nifty hit 8,000 mark for the first time since November 6, 2015.
12.55 pm: Shares of RattanIndia Power were trading 14.30 per cent up at Rs 11.19. The scrip opened at Rs 10.95 and has touched a high and low of Rs 11.55 and Rs 10.90, respectively, in trade so far. Sensex was up 209 points at 26,091. Nifty was trading 55 points up at 7,990.30.
RattanIndia Power surged nearly 18 per cent intraday after the company on Wednesday posted a consolidated net profit of Rs 227.28 crore for the quarter ended on March 31, 2016, against a loss of Rs 223.60 crore in the same period last year.
12.05 pm: Sensex was trading 160 points up at 26,042. Some support also came in from reports that foreign portfolio investors (FPIs) bought shares worth a net Rs 652.35 crore on May 25, 2016.
11.19 am: Tata Motors has received approval from an authorised committee to raise upto Rs 300 crore via issue of non-convertible debentures (NCDs) to bankroll its expansion plans. The authorised committee has approved issuance of privately placed 3,000 non-convertible debentures (NCDs) of face value Rs 10,00,000 each, at par, aggregating upto Rs 300 crore. Shares of Tata Motors were trading 0.18 per cent up at Rs 397.70. Sensex was up 111 points at 25,992. Nifty was trading 27.55 points up at 7,962.
10.51 am: Gail (India) was trading 1.02 per cent up at Rs 385.20. The company Gail (India) reported a rise of 50.76 per cent in its net profit at Rs 769.99 crore for the quarter ended March 31, 2016 as compared to Rs 510.75 crore for the same quarter in the previous year.
10.03 am: YES Bank shares gained after the Cabinet Committee on Economic Affairs on Wednesday approved YES Bank’s proposal to increase foreign investment limit in the bank to 74 per cent, entailing FDI inflows of $1 billion (Rs 6,885 crore). Shares of YES Bank were trading 1.08 per cent up at Rs 1,007.
9.52 am: The rupee firmed up by 4 paise to 67.29 against the dollar in early trade on increased selling of dollar by exporters and banks amid a higher opening in the domestic equity market.
9.16 am: Larsen and Toubro surged as much as 11 per cent in the early trade. Engineering major Larsen & Toubro (L&T) reported 18.55 per cent increase in consolidated net profit at Rs 2,453.64 crore for the March quarter, and added that it expects 12-15 per cent rise in revenues this fiscal. The company had registered a net profit of Rs 2,069.64 crore in the corresponding quarter of 2014-15.
Sensex jumped as much as 187 points to 26068.61.
9.15 am: The BSE Sensex opened 127.08 points up at 26,008, while Nifty 50 index opened 35.55 points up at 7,974.
8.37 am: Domestic equity indices BSE Sensex and NSE Nifty are likely to open in green on Thursday tracking Nifty futures on the Singapore Stock Exchange (SGX Nifty) and firm global cues.
At 8.19 am (IST), SGX Nifty was trading 24 points, or 0.30 per cent, up at 7,967.50.
Asian shares look set to extend their recovery from 12-week lows on Thursday after renewed optimism on European banks’ prospects and a rise in oil prices to near $50 a barrel helped lift global shares.
On Wall Street, US S&P 500 Index rose to 2,091, highest in almost a month and near its six-month intraday high of 2,111.
Back home, benchmark indices rallied by more than two per cent on Wednesday to post their best gains in nearly three months, as companies with big rural sales rose after a private weather forecaster predicted more monsoon rains than initially estimated.
National Stock Exchange (NSE)’s Nifty ended 2.40 per cent higher at 7,934.90, while Sensex rose 2.28 per cent to close at 25,881.17.
Shares of Ashok Leyland and Tata Steel will remain in focus on Thursday. Hinduja group flagship Ashok Leyland on Wednesday reported a 66.50 per cent decline in its standalone net profit at Rs 77.02 crore for the fourth quarter ended March 31, hit by diminution in value of its investments. The company, which has earmarked exceptional provisions of Rs 389 crore for 2015-16, including impairment in investments on certain joint ventures as well as overseas subsidiaries, had posted a standalone net profit of Rs 229.97 crore in the same period of the previous fiscal.
Tata Steel on Wednesday said its consolidated net loss has come down to Rs 3,213.76 crore in the quarter ended March 31, 2016, from Rs 5,702.28 crore in the same period last year.
(With agency inputs)