 "Bulls dominate D-Street; Sensex rallies 500 points")
Markets continue to remain strong with banks displaying a spectacular rally. Strength in the Asian equities following a strong finish on the Wall Street on upbeat new homes sales data and revised upward its 2016 southwest monsoon forecast by Skymet lifted sentiments.
At 14:35 pm, the S&P BSE Sensex climbed 520 points to quote at 25,833 and the Nifty50 gained 171 points to trade at 7,919.
Top five stocks in the Sensex pack includes ICICI Bank, HFDC, Axis Bank, SBI and Tata Motors up between 2-3.5%. However, Cipla and Coal India are the losers in the Sensex pack down between 0.1%-6%.
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(updated at 10:50 am)
Markets have opened the session on a robust note mirroring strength in the Asian equities following a strong finish on the Wall Street on upbeat new homes sales data. Revised upward its 2016 southwest monsoon forecast by Skymet uplifted the mood. (updated at 10:50 am)
At 9:40 am, the S&P BSE Sensex climbed 321 points to quote at 25,626 and the Nifty50 gained 109 points to trade at 7,855.
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“The swing higher towards 7,855 anticipated yesterday paused midway but is expected to mature fully today. However, as maintained yesterday along the trading strategies, the 7,855 mark is likely to is ask questions, and challenge the upside convictions. Meanwhile, it is instructive to note that the upside gap opening expected today, stands a fair chance of mustering enough volatility is favoured to dominate as the day matures,” says Geojit BNP Paribas in a technical note.
GLOBAL MARKET
Asia markets opened higher with indices trading more than 1% higher following a strong finish on the Wall Street on upbeat new homes sales data. Japan's Nikkei gained 1.6% on the back of a depreciating Yen. Meanwhile, Hong Kong’s Hang Seng and China’s Shanghi Composite surged 2.4% and 0.3% respectively.
US stocks soared on back of a rally in financial and technology shares. The sale of new homes surged 16.6% in April, representing the largest monthly jump in 24 years — a sign that builders are stepping up as demand for housing remains robust. The Dow Jones Industrial Average rallied 1.2%
MONSOON UPDATE
Private weather forecaster Skymet has predicted an above normal monsoon in India, starting in July. On Tuesday it announced that the monsoon will be 109% of the long-period average, for the four-month period from June to September. It also said the monsoon would arrive on time in Kerala, though the Indian Meteorological Department predicted it would arrive late on June 7.
RESULT CALENDAR
Ashok Leyland, Bajaj Auto, GAIL (India), L&T, Tata Steel, V I P Industries, Glaxosmithkline Pharma, National Aluminium Company will announce their Q4 numbers today.
STOCKS
Tech Mahindra surged 6% after its consolidated net profit had almost doubled to Rs 897.08 crore for the quarter ended March 2016.
Ricoh India, a subsidiary of Japanese multinational imaging and electronics major Ricoh Co, is under the scanner of the Securities and Exchange Board of India (Sebi) for the alleged inconsistencies in financial transactions recorded in the company's book of accounts. Tracking the development, the stock has cracked 5%.
Leading stock exchange BSE today revised circuit limits for share movement of ABG Shipyard, Future Retail and six others as part of its surveillance action. The stock is down 1%.
Drug maker Cipla's net profit fell 68.9% to Rs 81 crore in Q4 FY 2016 on a year-on-year basis on account of one off expenses related to inventory reduction and closure of business in few small-size overseas markets. The stock slumped over 5%.
Bharti Airtel has completed the Rs 4,428 crore deal with Videocon Telecommunications Ltd (VTL) to acquire the latter's spectrum in six circles.The stock is up 1%.
Axis Bank’s top management has decided to take home a reduced variable pay as the bank's performance came under pressure in the last financial year due to mounting bad loans. The stock gained 2%.
Bank of India (BOI) has posted net loss of Rs 3,587 crore for the fourth quarter ended March 2016 on sharp rise in provisions for bad loans. This is third consecutive quarter for which it posted a loss in FY16. The stock lost 2%.
Tata Power's generation capacity increased by close to 5% in FY16 as compared to FY15. The stock is up nearly 2%.