MARKET WRAP: Sensex surges 718 pts, reclaims 34,000-mark; PSU banks rally

Nifty PSU Bank index post sharpest single-day gain in past one year, surging 8 per cent led by Oriental Bank of Commerce and Canara Bank.

The benchmark indices settled over 2 per cent higher on Monday, as investors lauded a solid set of September-quarter earnings in large-cap companies such as ICICI Bank and Dr. Reddy’s Laboratories.

The S&P BSE Sensex reclaimed the 34,000-mark, ending at 34,067, up 718 points, while the broader Nifty50 index settled at 10,251, up 221 points.

Among key stocks, ICICI Bank settled over 11 per cent to Rs 351.45 on the National Stock Exchange (NSE) after the private sector lender reported better-than-expected results for the September quarter of FY19.

Divi’s Laboratories surged 15 per cent to end at Rs 1,444.20 on the NSE after the it reported a healthy 92% year-on-year (Y-o-Y) jump in its net profit at Rs 3.98 billion in September quarter (Q2FY19), on back of strong revenue growth. The company had a profit of Rs 2.07 billion in the year-ago quarter.

In sectoral indices, Nifty PSU Bank index post sharpest single-day gain in past one year, surging 8 per cent after a media report suggested that the government expects some changes in the prompt corrective action (PCA) framework prescribed by the Reserve Bank of India (RBI) to enable more sanction of credit by PSU banks.

The Nifty Pharma index rose 5.2 per cent led by gains in Divi's Labs and Dr. Reddy's Laboratories. Shares of Dr Reddy’s have gained 5.3% to end at Rs 2,531.65 on the NSE after the company reported a good operational performance in September quarter (Q2FY19), on account of lower R&D, higher other income, financial income, and lower tax.

Global Markets

Worries about China’s slowing economy spread across Asian markets on Monday with US stock futures turning down and Chinese shares in the red as concerns about US corporate earnings and global growth continued to hit sentiment.

Japan’s Nikkei slipped 0.2 per cent, having climbed 1 per cent earlier while South Korea’s KOSPI stumbled 1.6 per cent. Shanghai’s SSE Composite faltered 2.5 per cent. Hong Kong’s Hang Seng index also turned red, leaving MSCI’s broadest index of Asia-Pacific shares outside Japan mostly flat after rising over 0.5 per cent earlier in the day.

(with Reuters input)

4:18 PM

MARKET COMMENT Jayant Manglik, President, Religare Brokin

Markets started the week on robust note and posted decent gains in the end. Among the benchmark indices, Nifty opened with an uptick and gradually inched higher, tracking encouraging earnings announcements. Banking and pharma led the rebound and others also joined in as session progressed. Besides, recovery in broader market indices further boosted the sentiment. Nifty finally settled around 10,250; up by over two percent.

 

We may see further rebound ahead but upside seems capped. We reiterate our view maintaining stock specific trading approach and focusing more on position management. Earnings and global cues would largely dictate the market trend in near future

3:37 PM

Sectoral gainers and losers on NSE

3:37 PM

S&P BSE Sensex: Top gainers & losers

3:34 PM

Market at close
 

The S&P BSE Sensex gained 718 points or 2.15 per cent to settle at 34,067 while NSE's Nifty50 index rallied 221 points or 2.21 per cent to end at 10,251. 

3:32 PM

NEWS ALERT Nifty PSU Bank index post sharpest single day gain in past one year

3:27 PM

Wrong time to fight? RBI-govt dispute can further damage investor sentiment

Long-simmering discord between the Indian central bank and the government is turning into a very public brawl. The timing couldn’t be more awful for markets.

 

In a hard-hitting speech Friday on central-bank independence, Reserve Bank of India Deputy Governor Viral Acharya startled his audience by invoking Argentina of 2010. READ MORE

3:21 PM

NEWS ALERT Sensex reclaims 34,000 mark

3:00 PM

Tata Power second-quarter profit soars 88.5 per cent

 

Tata Power Co Ltd posted an 88.46 percent surge in second-quarter profit on Monday, underpinned by higher revenue from its power business. Net profit came in at 3.36 billion rupees ($42.65 million) for the quarter ended Sept. 30, up from 1.78 billion rupees a year earlier, the power generator and distributor said. Read more

2:47 PM

Oil prices fall as investors wary of trade slowdown

 

Oil prices dipped on Monday amid cautious sentiment as a plunge in financial markets last week and dollar strength early this week underscored concerns that growth may be slowing, especially in Asia's emerging economies. Front-month Brent crude oil futures were trading down 46 cents, or 0.6 percent, at $77.16 a barrel. Read more

 

2:30 PM

After years of global success, Mukesh Ambani's RIL faces oil shock at home

 

Reliance Industries, currently India's second most valuable listed company, got rich by trading fuel across Asia, Africa and Europe while effectively ignoring its home market. Reliance's refineries processed crude from the nearby Middle East and sold fuel to fast-growing markets in North Asia including China, Japan, South Korea and Taiwan. Read more

2:20 PM

Time to buy good businesses, says Devangshu Datta

 

The failure of the Infrastructure Leasing & Financial Services (IL&FS) rights issue could mean an escalation of problems for the financial sector. The rights issue could have acted as a sort of backstop although the defaulting non-banking financial company (NBFC) would need a great deal more than the Rs 45 billion (bn) that the issue was supposed to raise. The group has debt of about Rs 910 bn on the books — it’s hard to tell due to the number of subsidiaries. Read more

2:10 PM

Market check

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	33,826.50	+477.19	+1.43
S&P BSE SENSEX 50	10,649.16	+156.00	+1.49
S&P BSE SENSEX Next 50	30,439.04	+693.32	+2.33
S&P BSE 100	10,431.63	+165.51	+1.61
S&P BSE Bharat 22 Index	3,349.13	+84.65	+2.59

2:03 PM

EARNINGS IMPACT

2:00 PM

NEWS ALERT Tata Power reports Q2 earnings with net profit at Rs 3.93 bn

1:48 PM

FPIs take a shine to health care and IT services companies in Q2

 

Foreign portfolio investors (FPIs), the biggest non-promoter shareholders in the Indian stock market, increased their allocation in health care and information technology (IT) services companies in the quarter ended September, while reducing holdings in banks. An analysis of Capitaline data for 492 companies from the BSE 500 universe that have disclosed their shareholding pattern for the quarter shows FPIs raised their stake in 175 companies and decreased their holding in 251 companies on a quarter-on-quarter basis. Read more