The BSE Sensex and NSE Nifty surged over 2 per cent on Wednesday after a private weather forecaster Skymet raised the outlook for the 2016 monsoon amid firm global cues. Sentiments further improved after Citigroup said that India’s GDP growth for the fourth quarter of 2015-16 is likely to improve to 7.8 per cent – the highest pace in six quarters – on account of uptrend in economic activity and favorable base effect. Morgan Stanley also upgraded Indian equities to ‘overweight’ from ‘equalweight’.
Sensex closed 575.70 points, or 2.28 per cent up at 25,881.17, while Nifty 50 index settled 186.05 points, or 2.40 per cent, up at 7934.90.
Barring Cipla (down 4.42 per cent), rest all other components in the Nifty 50 index closed in green. Tech Mahindra surged the most — 10.42 per cent, followed by IndusInd Bank (up 4.99 per cent), ICICI Bank (up 4.56 per cent), Bajaj Auto (up 4.40 per cent) and BHEL (up 4.33 per cent).
Nikhil Kamath, co-founder and director, Zerodha , “Markets staged a stellar rally on Wednesday, with the indices closing 2.5 per cent higher on the back of better than expected earnings and positive global cues. A lot of shorts had built into the system over the last couple of weeks and this rally in part could be exaggerated by the covering of these short positions.”
All the sectoral indices on the Bombay Stock Exchange ended the day in green with BSE Bankex and BSE Capital Goods index surging 3.17 per cent and 2.96 per cent, respectively.
Skymet expects monsoon rains to be 109 per cent above the long-term average, compared with its earlier estimate of 105 percent. Traders also took some encouragement with Australian Met Department’s report that the weather system that wreaked havoc in India, Asia and Africa has just ended and will now give way to bountiful rain in the form of La Nina.
For upcoming trading sessions, Nirdosh Gaur, managing director and CEO, Moneypalm said, “In the next 2-3 days, Nifty upside is capped between 7,960-7,990 range and Thursday is expiry day for current month futures and maximum open interest is standing in Nifty 8,000 calls which is around 86 lakh and we are expecting it will not breach by tomorrow. If Nifty able to sustain above the range of 7,960-7,990 than we are expecting an upside till 8,150 within coming week.”
Market participants will watch results of few big companies like State Bank of India, ONGC, Bhel, IOC, HPCL, Divi’s Lab, Coal India, Bhel and Hindalco in coming 4-5 days.
Asian equity markets ended mostly higher on Wednesday, with Hong Kong leading the gains, inspired by solid overnight gains in US and European markets even as upbeat US housing data fueled speculation the Federal Reserve will raise interest rates in June or July.
Markets through the day
3.30 pm: Sensex closed 575.70 points, or 2.28 per cent up at 25,881.17, while Nifty 50 index settled 186.05 points, or 2.40 per cent, up at 7934.90.
2.50 pm: Sensex was trading 553 points up at 25,859. Nifty was up 176.80 points at 7,925.
2.45 pm: Bajaj Auto reported 29.18 per cent increase in standalone net profit to Rs 803.06 crore for the fourth quarter ended March 31, riding on robust sales growth. The company had posted a standalone net profit of Rs 621.62 crore in the same period of the previous fiscal. Shares of Bajaj Auto were trading 4.51 per cent up at Rs 2,492.
2.29 pm: Benchmark index continued trade firm on Wednesday. The 30-share index surged 508.53 points, or 2 per cent to 25,814, while Nifty was trading 158.60 points up at 7,907.45.
2.19 pm: Shares of Ruchi Soya Industries fell as much as 19.50 per cent in early trade after Sebi barred the company from the securities market for alleged fraudulent activities in trading of castor seeds. Later, the scrip was trading 7 per cent down at Rs 20.50.
1.54 pm: Nifty was trading 153 points up at 7,902. Amara Raja Batteries were trading 4.53 per cent down at Rs 853.95. The company on Wednesday reported a 6.19 per cent increase in net profit to Rs 108.6 crore for the quarter ended March 2016. It had posted a net profit of Rs 102.26 crore in the same period of the previous fiscal.
1.38 pm: After hitting lower circuit on Tuesday, VRL Logistics shares plunged as much as 19.7 per cent in Wednesday trade. The scrip was trading 9.27 per cent down at Rs 285.90 (at 1.38 pm). Sensex was up 453 points at 25,758.
1.00 pm: IndusInd Bank shares were trading 4 per cent up at Rs 1084.55. The bank has entered into agreement with Lohia Auto Industries for financing their diesel three wheelers. Through this partnership IndusInd bank will offer retail finance at an attractive rate of interest to the customers of Lohia Auto for all Lohia 3-wheeler models. This partner will be able to provide hassle-free loan facility at competitive interest rates to its customers.
12.29 pm: In the Nifty 50- index, only Cipla (down 4.64 per cent) was trading in red, rest all other components were in green. Tech Mahindra (up 7.29 per cent), ICICI Bank (up 4.12 per cent), IndusInd Bank (up 4.01 per cent), Larsen & Toubro (up 3.08 per cent) and HDFC (up 2.97 per cent) were among top gainers.
12.15 pm: Shares of Axis Bank were trading 2.13 per cent up at Rs 499.70. Private sector lender Axis Bank on Tuesday said it has incorporated a subsidiary A.Treds Ltd to operate Trade Receivables Discounting System (TReDS), which will help in improving flow of funds to SMEs. Sensex was up 428 points at 25734, while Nifty was trading 140.55 points up at 7,889.
11.03 am: Meanwhile, Morgan Stanley upgraded India to “overweight” from “equalweight”. Sensex was trading 347 points up at 25,652.
10.21 am: Reversing its nine-day losing trend, the rupee on Wednesday recovered 20 paise to 67.55 against the US dollar in early trade on fresh selling of the American currency by exporters and banks amid a higher opening in the domestic stock markets. Sensex was up 353 points at 25,658.
9.36 am: Shares of Tech Mahindra surged as much as 14 per cent on Wednesday after the IT services firm Tech Mahindra on Monday said its consolidated net profit has almost doubled to Rs 897.08 crore for the quarter ended March 31, 2016. The Mumbai-based company had posted a net profit of Rs 472 crore in the corresponding quarter last fiscal. The scrip was trading 9.29 per cent up at Rs 523.75 (at 9.36 am). Sensex was up 329 points at 25634. Nifty was trading 104.55 points up at 7,853.
9.16 am: Sensex surged 259 points to 25,565 in the early trade. Nifty was up 81 points at 7830.65. Cipla was trading 3.74 per cent down at Rs 476.40. Pharma major Cipla on Tuesday reported a consolidated net profit of Rs 80.87 crore for the fourth quarter ended March 31, 2016. The company had posted a net profit after minority interest and share of profit/loss of the associates of Rs 259.66 crore for the corresponding period of the previous fiscal.
9.15 am: Buoyed by firm global cues, the BSE Sensex opened 126.63 points up at 25,432.10, while Nifty index opened 62.95 points up at 7,811.80.
8.58 am: India’s GDP growth for the fourth quarter of 2015-16 is likely to improve to 7.8 per cent – the highest pace in six quarters – on account of uptrend in economic activity and favorable base effect, says a report. According to the global financial services major Citigroup, the January-March quarter GDP is likely to reinforce growth optimism.
8.43 am: Domestic equity indices BSE Sensex and NSE Nifty are set to open higher on Wednesday tracking Nifty futures on the Singapore Stock Exchange (SGX Nifty) and firm global cues.
At 8.25 am (IST), SGX Nifty was up 69.50 points, or 0.89 per cent, at 7,825.
Asian shares were trading higher in the morning trade, taking cues from sharp gains in European and US financial shares while the dollar was underpinned as investors count on the US Federal Reserve to hike interest rates in coming months.
Hang Seng, Nikkei and Shanghai were trading up by 2.50 per cent, 1.80 per cent and 0.23 per cent.
On Wall Street, the S&P 500 Index rose 1.4 per cent, helped by high-tech and banking shares, which will benefit from higher rates. European shares climbed sharply overnight, also led by financial shares, with the pan-European stock index rising 2.3 per cent to its highest level since late April.
Benchmark Sensex on Tuesday reversed its four-day fall and ended higher by over 75 points, taking comfort from encouraging corporate earnings despite lingering worries about a likely rate hike by the US Fed as early as June.
Shares of Bharti Airtel and Tech Mahindra will remain in focus on Wednesday. Bharti Airtel on Tuesday said it has completed the Rs 4,428 crore deal with Videocon Telecommunications Ltd (VTL) to acquire the latter’s spectrum in six circles.
IT services firm Tech Mahindra said its consolidated net profit has almost doubled to
Rs 897.08 crore for the quarter ended March 31, 2016. The Mumbai-based company had posted a net profit of Rs 472 crore in the corresponding quarter last fiscal. The company also became the third entity to drop out of the payments bank race, saying business profitability would take longer time due to ‘aggressive posturing’ by many deep-pocketed players.
(With agency inputs)