Nifty tops 8,950, Sensex nears 29,000 as RIL spikes 10% to lead gains; Axis Bank, Tata Motors help

By: | Updated: February 22, 2017 4:08 PM

India’s stock markets were trading firm with the benchmark NSE Nifty breaching the 8,950-mark for the first time in over five months and BSE Sensex teasing 29,000, led by a spike in the shares of Reliance Industries, which alone contributed to over 40% of the gains in the benchmark indices.

NSE Nifty was trading up 0.55% at 8,957.1 points, its highest since September 8, 2016. BSE Sensex was up 0.66% at 28,950.48 points. (Image: PTI)

India’s stock markets were trading firm with the benchmark NSE Nifty breaching the 8,950-mark for the first time in over five months and BSE Sensex teasing 29,000, led by a spike in the shares of Reliance Industries, which alone contributed to over 40% of the gains in the benchmark indices.

NSE Nifty was trading up 0.55% at 8,957.1 points, its highest since September 8, 2016. BSE Sensex was up 0.66% at 28,950.48 points.

Reliance Industries

Reliance Industries, the index heavyweight, extended morning gains and was trading up by a whopping 9.3% at Rs 1,189.35, contributing to 42.8% of the rise in Nifty. Reliance Industries shares, which hit the 10% circuit limit, have spiked on the prospects of fresh cash inflows from Reliance Jio with the start of paid services beginning April.

Jal Irani, Senior VP at Edelweiss Financial Services, said he sees significantly greater upside from here for the shares of Reliance Industries, triggered by the commercialisation of Reliance Jio at a very healthy price point. RIL’s shares will be further aided by the projects under commissioning, which will nearly double the company’s productive assets, significantly adding to its free cash flows, he said.

Axis Bank

Axis Bank was the second largest contributor at 6% to Nifty in the early afternoon trade, rising 2.97% to Rs 519.35 on the reports of Kotak Mahindra Bank seeking to buy the government’s equity stake in it, with the biggies HDFC Bank and ICICI Bank also in the fray.

Kotak Mahindra Bank, businessman Uday Kotak-led private lender, has informally approached the government seeking to buy a stake in Axis Bank, in which the government holds 11.94% equity stake through SUUTI (Specified Undertaking of Unit Trust of India), CNBC TV18 reported citing unidentified sources.

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Following Kotak, other large private sector banks including ICICI Bank and HDFC Bank are also reported to have also showed interest in buying into Axis Bank, asking the government to plan any stake sale in it through competitive bidding.

Tata Motors, ITC

Tata Motors was among the other top contributors, rising by 1.42% on the news of a possible tie-up with Germany’s Volkswagen to share vehicle architecture and technology. Tata Motors shares were trading at Rs 465.15, contributing to 3.66% in the rise in Nifty. News reports suggested that the negotiations between the two companies are making progress and that an announcement is expected at the upcoming Geneva International Motor Show in March.

ITC also put in its weight on the indices, contributing to 4.43% in Nifty gains. It was trading up 0.84% at Rs 265.35.

 

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