The BSE Sensex and NSE Nifty surged for the third straight day in a row on Thursday as the post-Budget rally continued following creation of fresh bets coupled with a fresh spell of foreign fund inflows.
Sensex closed 364 points up at 24606, while Nifty 50 index settled 106.75 points up at 7,475.60. The 30-share index zoomed 1,605 points in the past three trading sessions.
The sentiments also remained upbeat after the International Monetary Fund (IMF) projected a robust growth rate of 7.3 per cent for the country this financial year, picking up to 7.5 per cent next year.
In the Nifty pack, Tata Steel shares surged the most — 7.62 per cent, followed by Vedanta (up 7.23 per cent), Larsen & Toubro (up 6.35 per cent), BHEL (up 6.33 per cent) and Tata Motors (up 6.28 per cent). On the other hand, ZEEL, ICICI Bank, UltraTech Cement and ITC slid 1.31 per cent, 1.09 per cent, 0.87 per cent and 0.22 per cent, respectively.
Barring the BSE FMCG index (fell 0.20 per cent), rest all other sectoral indices on BSE closed with gains. The BSE Capital Goods index, BSE Metal index and BSE Auto index surged 4.12 per cent, 4.05 per cent and 2.08 per cent, respectively.
Dipen Shah, senior vice-president and head of private client group research, Kotak Securities, said, “Markets rose for the third successive day post budget. Sentiment continued to remain positive with global markets also rising from their lows over the past few days and also crude, which has sustained around $36 per barrel. The net buying from FIIs also improved sentiments.”
In a scrip specific development, ONGC (up 1.31 per cent) and Reliance Industries (up 1.13 per cent) closed higher after the government planned to raise natural gas price by about 60 percent for their undeveloped gas discoveries in difficult areas.
Dr. Reddy’s Laboratories shares closed higher by 5.77 per cent after the drug maker got approval from US health regulator to start selling generic version of anti-nausea injection called Aloxi from 2018.
Overall market breadth for the day remained positive and advances to declines ratio for Nifty stood at 41:8 for the day. Volumes for Nifty stocks stood at 2,871 lakh against yesterday’s volumes of 3,488 lakh for Nifty stocks.
Asian markets ended mostly higher on Thursday, with positive overnight cues from Wall Street and gains in oil prices in Asian deals underpinning investor sentiment.
3.30 pm: The BSE Sensex closed 364 points up at 24,606, while NSE Nifty 50 index settled 106.75 points up at 7,475.60.
3.14 pm: Quick Heal shares hit upper circuit. The share price of the software provider surged 20 per cent to Rs 236.50. Sensex was trading 391.15 points up at 24,643.13.
3.02 pm: ITC shares were trading 0.86 per cent down at Rs 317.15. JP Morgan upgraded ITC to “Overweight” from “Neutral”, and raised price target to Rs 370. The brokerage house said a lower-than-expected excise duty hike in the Union 2016-17 was the reason for the upgrade.
2.56 pm: NSE Nifty was trading 97.90 points up at 7,466.75. Shrikant Chouhan, senior VP, technical research, Kotak Securities believes the 50-share index could gain to as much as 7,600 from 7,427. Based on Fibonacci Retracements, NSE Nifty 50 index could hit that level in the next 3-5 sessions. Chouhan also said RSI (relative strength index) and simple moving averages backed upward move.
2.49 pm: Sensex was up 341 points at 24,584. European shares were trading in red on Thursday, with chemicals maker Evonik among the worst performers, as investors took a breather after five straight days of gains brought a top European equity index to a one-month high.
2.08 pm: Dr Reddy’s Laboratories shares surged over 5 per cent intraday on Thursday on reports that the company has received approval from US health regulator to start selling generic version of anti-nausea injection called Aloxi from 2018. Sensex was up 302 points at 24,545.
1.46 pm: Eicher Motors shares were trading 0.20 per cent up at Rs 19,313. Eicher Motors and Volvo Group’s joint venture firm, VE Commercial Vehicles (VECV) has reported a growth of 57.25 per cent in total sales in February at 5,032 units as against 3,200 units in the same month last year. Sensex was trading 321 points up at 24,566.
1.19 pm: Buying in power stocks too aided sentiments after a report compiled by WEF ranked India at the 90th place in a list of 126 countries, on the basis of their ability to deliver secure, affordable and sustainable energy. The railways stocks continue to trade higher for yet another day after the Cabinet approved a cooperation pact between railways and Japan. The broader indices were trading in-line with benchmarks, while the market breadth on the BSE was positive; there were 1,526 shares on the gaining side against 887 shares on the losing side while 125 shares remain unchanged. Sensex was trading 328 points up at 24,451.
1.01 pm: Sensex was trading 315 points up at 24558.96. Nifty was trading 85 points up at 7,453.
12.53 pm: Sensex was trading 265 points up at 24,508. Nifty was up 79.40 points at 7448.25. In a boost to firms like ONGC and Reliance Industries, the government plans to raise natural gas price by about 60 per cent for their undeveloped gas discoveries in difficult areas. Shares of ONGC and RIL were trading higher by 1.38 per cent and 0.97 per cent.
12.40 pm: Tata Motors share price rallied as much as 5 per cent on Thursday after the company’s arm Jaguar Land Rover (JLR) reported a strong 25 per cent jump in US sales at 7,929 units in February 2016 against 6,327 units a year earlier.
12.04 pm: Just Dial shares were trading 14.28 per cent up at Rs 638.20. Sensex was trading 230.01 points up at 24,472.99. Nifty50 was trading 67.25 points up at 7,436.10.
11.29 am: On the global front, Asian markets were moderately higher on Thursday after Wall Street logged modest gains on solid labor market data, despite weakness in US manufacturing. Overnight, energy and bank stocks led Wall Street higher on Wednesday, adding to a rally in the previous session. Meanwhile, Chinese shares gained ahead of the 12th National People’s Congress (NPC) meeting, which convenes Saturday, while Japanese stocks rose for a third day as banks gained and a recovery in oil prices boosted commodity-related shares.
10.50 am: Barring the BSE Bankex (down 0.07 per cent), rest all other sectoral indices on BSE were trading in green. The BSE Metal index and BSE Capital Goods index were up 2.33 per cent and 2.22 per cent, respectively. The BSE Sensex was trading 248 points up at 24,491.
10.36 am: Jindal Steel and Power Ltd (JSPL) share price surged further and was trading 7.75 per cent up at Rs 61.90 on reports that the steel company is exploring partial or complete sale of power assets.
10.31 am: Nifty was up 64.75 points, or 0.88 per cent, at 7433.60. Traders said retail investors got down to beefing up their portfolios amid renewed hopes of a rate cut by the Reserve Bank and other Asian markets offered positive cues on talk that China will unveil new economy-boosting measures, which helped improve sentiment.
10.26 am: Tata Steel shares were trading 4.32 per cent up at Rs 278.70. The company has received clearance from Environment Ministry for its Rs 1,877 crore expansion project to be carried out at Jamshedpur Steel Works in Jharkhand. The ministry has considered the application based on the recommendations of the Expert Appraisal Committee (Industry-I) and decided to grant environment clearance (EC) to the proposal for expansion of crude steel production at Tata Steel Works.
10.23 am: Dr Lal PathLabs shares hit new high of Rs 946.75. The scrip was trading 6.36 per cent up at Rs 908. Sensex was up 213.60 points at 24,456.
10.18 am: Infosys shares were trading 1.48 per cent up at Rs 1173.40. Al Ahli Bank of Kuwait (ABK), a leading retail bank in Kuwait, has selected Infosys Finacle, part of EdgeVerve Systems, a product subsidiary of Infosys, to drive its technology transformation. The bank will deploy the complete suite of Finacle solutions including core banking, trade finance, wealth management, CRM, e-banking, payments, treasury, alerts, SMS banking, liquidity management, retail, and corporate loan origination. With Infosys Finacle, ABK will be able to achieve high operational efficiencies, accelerate growth and manage scale-ups easily, while delivering a digital age banking experience to its customers.
10.12 am: Meanwhile, Maruti Suzuki India announced that it will raise the prices of its passenger vehicles by up to Rs 34,494, after the government imposed a new ‘green’ tax on all cars sold in the country. Shares of Maruti Suzuki were trading 0.46 per cent down at Rs 3,595. Sensex was up 213 points at 24,456.
10.02 am: Investors in the domestic market are richer by over Rs 4 lakh crore because of the two-session post-Budget rally till March 2. Sensex surged over 1200 points in the past two days.
9.52 am: Talwalkars Better Value Fitness (TBVFL), India’s largest fitness chain with over 160 gyms across 84 cities in India, has inaugurated 10 gyms in Sri Lanka, as part of their overseas expansion plans, in association with Power World Gyms (PWG), a leading health and fitness chain based in Colombo. Shares of TBVFL were trading 0.68 per cent up at Rs 206.
9.41 am: Sensex was trading 163 points up at 24,406. Indian rupee on Thursday appreciated another 18 paise to trade at a 7-week high of 67.36 against the dollar on sustained bouts of selling of the US currency by banks and exporters amid foreign capital inflows.
9.34 am: Praising the budget 2016 proposals, the International Monetary Fund (IMF) has projected a robust growth rate of 7.3 per cent for the country this fiscal, picking up to 7.5 per cent next year, supported by stronger domestic demand, and has said that the measures are aimed at increasing public infrastructure spending, rationalising subsidies, creating more flexible labour and product markets as well as enhancing financial inclusion. Sensex was trading 208 points up at 24,451.
9.29 am: Sensex was trading 263.80 points up at 24,506.78. Nifty was up 68.35 points at 7,437.20.
9.27 am: Sensex was up 227 points at 24,470. Meanwhile, IMF said that the collapse in global oil prices is a large windfall gain for India and it has made room for more spending on goods and services.
9.25 am: In the 50-share index, Infosys, Dr Reddy’s Lab, Tata Steel, Asian Paints and Hindalco were up between 1.90 per cent and 2.50 per cent. On the other hand, GAIL, ICICI Bank, Bank of Baroda, YES Bank and ZEEL were down between 0.64 per cent and 2.45 per cent.
9.17 am: Sensex was trading 200.56 points up at 24,443.54. Nifty was up 49.20 points up at 7,418.
9.15 am: The BSE Sensex and NSE Nifty opened in green on Thursday on the back of firm global cues. The 30-share index opened 143.69 points up at 24,386.67, while the 50-share index opened 60.70 points up at 7,429.55.
8.41 am: Domestic equity indices may open on a positive note on Thursday tracking Nifty futures on the Singapore Stock Exchange (SGX Nifty) and global cues.
At 8.27 am (IST), SGX Nifty was trading 48.50 points, or 0.65 per cent, up at 7,409.50.
Asian shares were bound for a third straight session of gains on Thursday as upbeat data on US jobs and a rally in a range of commodities whetted risk appetites globally.
US markets inched higher to close on a positive note, on the back of encouraging ADP employment data, and uptick in oil prices. Also, commentary from the Beige book released by Fed indicated that economic activity expanded across most districts since the previous Beige Book. All these positives indicate that US economy is regaining momentum and as a result US markets closed in green. Energy and bank stocks had led Wall Street higher on Wednesday, giving the Dow a gain of 0.2 per cent. The S&P 500 added 0.41 per cent and the Nasdaq 0.29 per cent.
Majority of the European market indices ended in green. Financial and Resource stocks were amongst the best performers on Wednesday. Stocks pared some of its early gains in response to mixed regional data. While Eurozone producer prices fell at slowest pace in 5 months in Jan, matching estimates, British construction activity unexpectedly hit 10-month low in Feb, defying economists’ expectations of modest improvement. FTSE was down 0.1 per cent.
Back home, market sentiment remained bullish on Wednesday as buying paced up after the government stuck to its fiscal deficit target, which raised hopes of a rate cut by the Reserve Bank any time this month. The 30-share Sensex closed higher by 463.63 points, or 1.95 per cent, at 24,242.98.
The 50-share NSE Nifty, after reclaiming the crucial 7,300-mark, settled at 7,368.85, up 146.55 points, or 2.03 per cent on Wednesday.
Shares of Bharat Forge and HDFC will remain in focus on Thursday. Life Insurance Corporation (LIC) has hiked its stake in components maker Bharat Forge by 2.02 per cent, by buying 47.12 lakh shares in the open market.
Leading mortgage lender HDFC Ltd on Wednesday said it will raise Rs 2,000 crore via non-convertible debentures (NCDs) to fund business needs.
(With agency inputs)