India's stock markets started on a positive note on Monday with Sensex and Nifty hitting all-new record highs on the back of third-quarter earnings optimism and positive global cues led by a continuous upsurge in American stock markets.
India’s stock markets started on a positive note on Monday with Sensex and Nifty hitting all-new record highs on the back of third-quarter earnings optimism and positive global cues led by a continuous upsurge in American stock markets. BSE Sensex zoomed 94.82 or 0.27% to began at a record opening high 34,687.21 while NSE Nifty added 37.25 or 0.35% to open at 10,718.5 for the first time ever. Within wee minutes of the opening trades, the benchmark Sensex surged as much as 209.35 points to hit an all-time high of 34,801.74 whereas the wider share indicator Nifty rose 52.15 points to mark the record high of 10,733.4. Following the optimism over better-than-expected Q3 earnings, foreign investors have pumped in over Rs 5,200 crore in the Indian capital markets this January so far. Going ahead this week, Indian stock markets are likely to be steered by the third-quarter earnings of blue-chip companies like HDFC Bank, ITC, Wipro, Kotak Mahindra Bank, Yes Bank, Bharti Airtel and WPI inflation due later today.
Shares of heavyweight companies such as ICICI Bank, HDFC, Wipro, Power Grid, TCS, Reliance Industries, SBI were the major gainers among the 31 stocks of Sensex while IndusInd Bank and Bharti Airtel traded a little lower. The stock of ICICI Bank extended the gains on Monday, rising as much as 3.29% to the day’s high of Rs 328.05 while HDFC shares rose 2% to the day’s high of Rs 1,796.7 after the board of India’s largest housing financier approved raising up to Rs 13,000 crore primarily to maintain its holding in its banking arm and enter segments like stressed assets and health insurance.
Shares of Infosys rose 1.26% to a fresh 52-week high of Rs 1,092.05 after India’s second-largest IT company on Friday reported a rise of 38.22% in the net profit to Rs 5,129 crore for the October-December quarter for the current fiscal as compared to Rs 3,708 in the same period last year. The total revenues from operations rose marginally to Rs 17,794, up by 3.01% for the third quarter ended 31 December 2017. Interestingly, the EPS (earnings per share) of Infosys jumped 38% while the cash and cash equivalents declined by 33% due to the mega share buyback of worth Rs 13,000. The basic EPS of Infosys rose 38.34% to Rs 22.55 per equity share for the quarter ended 31 December 2017 versus Rs 16.3 at the end of 30 September 2017. While, on the other hand, the cash and cash equivalents of Infosys have reduced 33.4% to Rs $3,615 million at the end of 31 December 2017 as compared to $5,428 million at the end of 30 September 2017.
Wall Street continued its rally on Friday with record closing highs as the fourth-quarter earnings season kicked off with solid results from banks and robust retail sales drove investor optimism about economic growth, Reuters said in a report. The S&P 500 and Nasdaq both registered their eight record closing highs out of the first nine trading days of 2018, while the Dow boasted its sixth closing high of the year, Reuters added. The Dow Jones Industrial Average rose 228.46 points, or 0.89 percent, to 25,803.19, the S&P 500 gained 18.68 points, or 0.67 percent, to 2,786.24 and the Nasdaq Composite added 49.29 points, or 0.68 percent, to 7,261.06.