Indian stock markets open strong ahead of the earnings as the investors remain optimistic about the first quarter performance of the Indian companies. BSE Sensex opened 172 points higher at 31,827.83 points. The rupee turned weak by 2 paise to 64.35 against the US dollar.
Indian stock markets open strong ahead of the earnings as the investors remain optimistic about the first quarter performance of the Indian companies. BSE Sensex opened 172 points higher at 31,827.83 points while NSE Nifty 50 inched near to 9,900 level, opened 28 points higher at 9,855.95 points.
Shares of Lupin (up 1.61%), ITC (up 1.35%), Dr Reddy’s (up 1.34%), Sun Pharma (up 1.27%), Cipla (up 1%) lead on the benchmark Sensex while ITC which dragged the benchmark yesterday remain the top pointwise contributor in driving the Sensex up, contributing as much as 29 points followed by TCS, Reliance, Sun Pharma and Kotak Mahindra Bank.
All the sectoral indices of NSE trade in green, led by pharma, FMCG, realty, bank, metal, media, IT, auto, financial services gains up to 1.45%.
The rupee turned weak by 2 paise to 64.35 against the US dollar in early trade today on fresh buying of the American currency by importers. Traders said fresh demand of the US currency from importers and dollar’s recovery against some currencies overseas weighed, but a higher stock opening capped the rupee’s fall, PTI reported. Yesterday, the rupee saw a marginal two paise rise in its value at 64.33 a dollar, which hit multi-month lows against rivals.
Here are the stocks which will be in focus:
Hindustan Unilever Ltd: Shares of the FMCG major Hindustan Unilever will be in action today as, yesterday it posted an over 9% rise in its standalone net profit at Rs 1,283 crore for the April-June period, while some of its business verticals saw a muted quarter due to ‘destocking’ in view of the GST implementation from July 1.
ITC Ltd: Yesterday several analysts downgraded their recommendation on ITC shares, which fell as much as 15% intraday. ITC shares went down drastically to trade at pre-GST levels of March, giving up all the gains in the run up to the implementation of GST and after it. Earlier on Monday, the GST Council, in its first review meeting since the implementation of India’s biggest tax reform since independence, hiked the cess on cigarettes by Rs 485-792 per 1,000 sticks.
Stocks to watch out ahead of first quarter earnings:
Indian markets yesterday:
Domestic markets fell sharply on Tuesday after rising for three consecutive trading sessions with the market benchmark Sensex closing down over 360 points while Nifty 50 ended 88 points lower somehow manages to close above 9,800 after slipping to the day’s low of 9,792.05 in the intraday trade.
ITC remained the biggest loser on both the benchmark indices with shares closing down 12.63% to Rs 284.6. Shares of ITC Ltd posted their biggest intraday percentage fall since October 2012, accounting for more than half of the losses on the indexes, dragging the benchmark Sensex over 360 points.
Meanwhile, foreign portfolio investors (FPIs) bought shares worth a net Rs 328.61 crore, while domestic institutional investors (DIIs) sold shares worth a net Rs 447.14 crore on Tuesday, as per provisional data released by the stock exchanges.
US stocks ended mixed on Tuesday with S&P 500 closing flat, Nasdaq Composite Index hit an all-time high while Dow Jones Industrial Average ended in the red. Dow was dragged as shares of Goldman Sachs dropped after reporting weak earnings.
Shares in Asia were mostly higher on Wednesday after a mixed finish on Wall Street. Investors were turning their focus to policy meetings by central bank boards in Japan and the EU.