The BSE Sensex surged over 500 points intraday on Wednesday as data showing easing inflation and a government forecast for an above-average monsoon rains sparked hopes for the economy and for more rate cuts by the central bank. Later, the index settled 481.16 points, or 1.91 per cent, up at 25,626.75. Similarly, the Nifty index on the National Stock Exchange soared 141.50 points, or 1.84 per cent, to 7,850.45.
In the 50-share index, Mahindra and Mahindra, Bajaj Auto, ICICI Bank, Maruti Suzuki and BHEL gained 7.38 per cent, 4.97 per cent, 4.96 per cent, 4.72 per cent and 4.56 per cent, respectively. On the other hand, ZEEL, Infosys, HCL Technologies, Adani Ports and Aurobindo Pharma slid 1.12 per cent, 0.57 per cent, 0.46 per cent, 0.26 per cent and 0.08 per cent, respectively.
Nirdosh Gaur, managing director and CEO, Moneypalm, said, “Domestic equity markets on Wednesday opened higher on positive cues from global markets, better than expected CPI numbers and positive IIP reading after a gap of three quarters. Forecast of an above normal monsoon by the Met department after two successive droughts also boosted sentiment and raised hopes for pickup in growth momentum.”
Sectorwise, the BSE Auto index surged the most — 3.59 per cent, the BSE Bankex (2.56 per cent), BSE Metal (2.14 per cent). Rest all other sectoral indics on the Bombay Stock Exchange also ended in green.
Support also came with the International Monetary Fund’s latest World Economic Outlook report, which despite cutting global growth forecast has said that India’s growth is projected to notch up to 7.5 per cent in 2016-17, overtaking China’s GDP by more than 1 per cent, mainly driven by private consumption and increased industrial activity.
Buying in banking stocks too aided sentiments on hopes that credit growth would pick up after data showed a rebound in industrial output in February. FMCG majors ITC and HUL ended higher on hopes that good monsoon this year would boost volume growth going forward.
Stocks related to realty counter too remained on buyers’ radar on hopes that the Reserve Bank of India could ease interest rates further after latest data showed that consumer price inflation eased to a six-month low in March. Metal and Mining stocks also gained after the latest data showed stronger-than-expected growth in China’s exports.
“The retail inflation at 4.83 per cent is now well within RBI’s comfort zone of 5 per cent. If monsoon in coming months is in lines with the prediction, inflation will come down to sub 4 per cent levels and we can expect another round of rate cut by RBI in October 2016,” said Nirdosh.
Jewellery-related remained in action on Wednesday after jewellers in the national capital temporarily called off their 42-day strike, demanding rollback of proposed excise duty on non-silver jewellery, for
12 days after the government’s assurance that there will be no harassment by excise officials. Shree Ganesh and Gitanjali Gems surged 7.95 per cent and 5.01 per cent to Rs 8.01 and Rs 37.30 respectively.
Asian equity markets ended higher on Wednesday, with sentiment bolstered by a weak yen, an overnight rally in oil prices and upbeat Chinese trade data. Chinese and Hong Kong shares ended higher, as upbeat trade figures out of China coming in before Friday’s release of first-quarter GDP data raised hopes that China’s slowdown might not be quite as severe as initially feared. While Chinese exports grew 18.7 per cent year-over-year in March in yuan terms, the fastest pace of growth since February 2015, the contraction in imports slowed to 1.7 per cent, beating expectations by a wide margin after an 8 per cent decline in the previous month. Japanese shares hit a fresh 1-1/2 week high as the yen slid from recent peaks against the dollar and Chinese trade data smoothened growth worries. Markets in South Korea were shut for a public holiday.
Markets through the day
3.30 pm: Sensex settled 481.16 points, or 1.91 per cent, up at 25,626.75. Similarly, the Nifty index on the National Stock Exchange soared 141.50 points, or 1.84 per cent, to 7,850.45.
3.09 pm: Sensex was up 498 points at 25,644.
2.46 pm: European shares rose on Wednesday as upbeat Chinese trade data buoyed global stock markets, with mining stocks among the best performers. The pan-European FTSEurofirst 300 index rose 1.4 percent while the euro zone’s blue-chip Euro STOXX 50 index advanced 1.7 percent. Sensex was trading 512.76 points or 2.04 per cent up at 25,658.26. Nifty was trading 152.50 points or 1.98 per cent up at 7,861.45. READ MORE: 5 reasons why Sensex soared over 500 points in today’s trade
2.12 pm: Mahindra and Mahindra (M&M) was trading 8.36 per cent up at Rs 1,344.50 on BSE. M&M is set to register biggest intraday gain in 7 years in percentage terms. According to market experts, shares of M&M may benefit from robust monsoon. READ MORE
Meanwhile, ICRA has reaffirmed its rating of [ICRA] AAA (stable) and [ICRA] A1+ for non-convertible debenture programme and bank facilities of Mahindra & Mahindra Ltd.
Sensex was trading 435 points up at 25581. Nifty was up 126.65 points higher at 7,835.
2.01 pm: Indian mining giant Adani’s 21.7 billion dollar coal mine project in Australia on Wednesdy faced a fresh legal hurdle after traditional owners of Queensland’s Galilee Basin challenged the leases granted to the controversy-hit project. Shares of Adani Enterprises were trading 1.33 per cent up at Rs 80.10. Sensex was up 442 points at 25,587.69.
1.57 pm: Banks were among the leading gainers after data released late on Tuesday showed retail inflation eased in March to a six-month low while industrial output beat market expectations and grew at an annual rate of 2 per cent in February. The BSE Bankex was trading 2.75 per cent up at 18,576. ICICI Bank and SBI were trading 6.17 per cent and 2.72 per cent up at Rs 242.75 and Rs 192.80.
1.08 pm: Sensex was trading 1.72 per cent up at 25,577. Vedanta was trading 4.69 per cent up at Rs 94.85. Vedanta has sold 1.6 million tonnes (MT) of iron ore from Goa during January-March quarter of the last fiscal. The firm also clocked a production of 1.9 MT during the reported quarter of the last fiscal, even as the production was impacted due to delay in transportation rate negotiations with the truckers.
12.46 pm: Jewellery stocks such as Shree Ganesh Jewellery House and Gitanjali Gems surged as much as 10.78 per cent and 9.5 per cent on Wednesday on reports that jewellers have called off their strike completely.
12.42 pm: The Sensex was 1.66 per cent higher at 25,562.71, after hitting its highest level since January 6 earlier in the session.
12.35 pm: Sensex was up 416.35 points at 25561.94, while Nifty was trading 121.90 points up at 7,830. In the 50-share index, Mahindra and Mahindra, Hindalco, ICICI Bank, UltraTech Cements and Tata Motors gained between 3.50 per cent and 7.05 per cent.
11.58 am: Sensex was trading 423.62 points up at 25,569.21, while NSE Nifty was trading 125.90 points up at 7,834.85. Kavri Seed Company shares surged over 5 per cent after it announced that the company has opened a new plant at Molangur Village, Shankarapatnam Mandal, Karimnagar District, Telangana State. The total investment made in the plant is over Rs 21.00 crore.
READ MORE: Monsoon forecast 2016: Sectors, stocks that will benefit from above normal rains
11.31 am: Madhucon Projects shares were trading 5.27 per cent up at Rs 55.90 as the Hyderabad-based infra firm said it has completed the sale of 74 per cent stake in Madhucon Agra-Jaipur Expressways (MAJEL) to Singapore-based Cube Highways and Infrastructure for Rs 248. Sensex was trading 414.62 points up at 25,560.21, while NSE Nifty was trading 123.85 points up at 7,832.80.
11.14 am: Shilpa Medicare shares were trading 11 per cent up at Rs 486. The company has received GMP compliance certificate for two API sites from PMDA-Japan. The unit -1 is situated at Deosugur Industrial Area, Karnataka and unit -2 is situated at Plot nos. 33, 33A, 40 to 47, Raichur Industrial growth Centre, Karnataka. Sensex was up 400.37 points at 25,545.
10.49 am: Wipro shares advanced as much as 4.17 per cent in morning trade on Wednesday after it informed bourses that the board will consider a buyback of equity shares of the company on April 20, 2016. The company will also announce its financial result for the quarter ended March 2016 on the same day.
10.31 am: The 30-share index was trading 403 points up at 25,549.
10.30 am: Engineering giant Larsen and Toubro (L&T) on Wednesday said its subsidiary L&T Infotech has filed a fresh draft red herring prospectus (DRHP) with the market regulator Sebi to launch its Initial Public Offer (IPO).
10.27 am: Sensex was up 388.82 points at 25,534. Nifty was trading 119 points up at 7,828. Brokers said buying activity picked up on positive economic data as industrial production expanded at 2 per cent year-on-year in February after staying negative for the last three months on better performance of mining, power and consumer goods.
9.40 am: Rupee firms up by 12 paise to 66.31 against dollar at the Interbank Foreign Exchange on increased selling of the US currency by banks and exporters amid positive economic data.
9.30 am: Meanwhile, Nifty crossed the psychological level of 7,800 for the first time since January 6. The index was trading 1.31 per cent up at 7,810.15. Sensex was up 369 points at 25,515. All the sectoral indices on the BSE were trading in green.
Read more: Why these 15 stocks are in focus in Wednesday’s trade
9.27 am: Axis Bank has reduced its Marginal Cost of Funds based Lending Rate (MCLR) by 15 basis points (bps) across all tenors. This follows the reduction in Policy rates by RBI on April 05, 2016. The reduced MCLRs will be effective from April 18, 2016. Further, the bank has also reduced the Base Rate by 5 bps to 9.45 per cent per annum from existing 9.50 per cent effective from April 18, 2016. Shares of Axis Bank were trading 1.53 per cent up at Rs 441.10.
9.21 am: Sensex surged further and was trading 308.30 points up at 25,453. Nifty was trading 88.05 points higher at 7,797. According to the data released by the NSE, the Foreign Institutional Investors (FIIs) were net buyers of Rs 2124.80 crore in index futures and options segments, as per Tuesday’s data, April 12, 2016.
FIIs were net buyers of index futures to the tune of 116.61 crore and they bought index options worth Rs 2008.19 crore. In the stock segment, FII’s were net sellers of stock futures worth Rs 242.37 crore, while they bought stock options worth Rs 26.07 crore.
9.15 am: The BSE Sensex and NSE Nifty opened higher on Wednesday on hopes of good monsoon this year. Indian Meteorological Department (IMD) on Tuesday came out with its prediction, saying the monsoon will be ‘above normal’ and there would be fair distribution across the country.
Sensex opened 212.83 points up at 25,358, while Nifty opened 68.20 points up at 7,77.15.
Asian share markets extended early gains on Wednesday after upbeat Chinese trade data offered hope the economy was stabilising, underpinning both risk sentiment and commodity prices.
A rally in energy stocks helped the Dow end Tuesday 0.94 per cent higher, while the S&P 500 gained 0.97 per cent and the Nasdaq 0.8 per cent. The S&P 500 energy sector jumped 2.8 per cent.
Back home, benchmark indices jumped for the second straight session on Tuesday, led by gains in auto stocks on forecast of an ‘above normal’ rains this year, following back-to-back monsoon failures. The benchmark BSE Sensex surged by 123 points to 25,145.59.
Industrial production grew 2 per cent year on year in February after staying negative for the last 3 months on better performance of mining, power and consumer goods, a proof that economic recovery is holding up.
Retail inflation in March fell to a six-month low of 4.83 per cent on account of cheaper food articles such as vegetables and pulses. The retail inflation, measured on Consumer Price Index (CPI), in February was revised upwards to 5.26 per cent from 5.18.
Equity markets will remain closed on Thursday on account of ‘Dr Baba Saheb Ambedkar Jayanti’ holiday and on Friday on account of ‘Ram Navami’ holiday.
(With agency inputs)
