Sensex regains 31,500 level: 5 factors driving the market

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Published: August 14, 2017 1:45:58 PM

Indian stock markets extended the morning gains as the investors regained confidence after last week’s slump of over 1,000 points in the benchmark Sensex in five trading sessions.

BSE Sensex rose as much as 287 points to 31,501.29 points and NSE Nifty gained 96 points to recoil 9,806.85 points. (Image: Reuters)

Indian stock markets extended the morning gains as the investors regained confidence after last week’s slump of over 1,000 points in the benchmark Sensex in five trading sessions. Equities opened higher on Monday tracking the Asian markets which advanced in early trade today, and Wall Street closing on a positive note on Friday despite the ongoing tensions between the US and North Korea. BSE Sensex rose as much as 287 points to 31,501.29 points and NSE Nifty gained 96 points to recoil 9,806.85 points.

Corporate earnings:

There are around 636 listed companies which scheduled to announce the first quarter earnings for the financial year 2017-2018 in this week. Out of which, 600 companies are lined up to release the earnings report card today itself. The shares of Coal India, Tata Power, AIA Engineering, Akzo Nobel, Apollo Hospitals, Bajaj Hindusthan, Castex Tech, DB Realty, DCW, Dredging Corp, Future Consumer, Granules, Grasim, IDBI Bank, Jain Irrigation, JK Tyre, MEP Infra, NBCC, Prestige Estates will be in focus today ahead of the first quarter earnings.

Bluechip rise:

Shares of Vedanta (up 4.44%), Tata Steel (up 4.03%), Hero MotoCorp (up 2.66%), Adani Ports (up 5.81%), Maruti Suzuki (up 2.32%) trading higher. Real estate developer DLF surged as much as 13.7% after saying on Saturday it was in the final stages of talks for a transaction involving its rental unit arm. DLF had previously said it was in talks with Singapore sovereign wealth fund GIC to sell a 40% stake in its property rental unit. Shares of drug major Cipla today rose over 6% after the company reported 23.63% rise in consolidated net profit for the first quarter ended June 30.

WPI Inflation:

Wholesale inflation rose to 1.88% in July as prices of some commodities increased in the first month of Goods and Services Tax (GST) rollout. Inflation based on the wholesale price index (WPI) was 0.90% in June 2017 and 0.63% in July 2016. The government data released today showed that prices of food articles went up by 2.15% in July on a yearly basis. In June, the prices had contracted by 3.47%. The data for July retail inflation is due later today.

Global cues:

A weak US inflation data dampened prospects of a rate hike this year, lifting sentiment across global markets. Asian stocks bounced on Monday after three straight losing sessions, tracking a firmer Wall Street, while the dollar was capped by tensions on the Korean peninsula. Asian markets were largely unfazed by a slew of activity data from China which was softer than forecast, though still largely solid.

Recovery in BFSI stocks:

Banks were among the top gainers, with the Nifty Bank index up 0.74%, after losing 3.4% last week. HDFC and HDFC Bank advanced 2.6% and 1.1%, respectively, and were among the leading gainers. State Bank of India shares losses and traded flat at Rs 280.75. Shares of ICICI Bank, Yes Bank, PNB, Axis Bank advanced up to 1.96%.

The broader Nifty 50 was trading up 0.91% at 9,799.35 while The benchmark Sensex rose 0.84% to 31,476.37 after falling 3.5% last week – the biggest weekly decline in 18 months. Meanwhile, Sun Pharmaceutical Industries and Bharat Petroleum Corp fell, after posting disappointing June-quarter results on Friday.

 

 

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