 "Nifty ends at 8-month high; Coal India up 4%, BHEL falls 6%")
Benchmark share indices ended higher for the fifth straight session after gains in IT majors helped offset losses in select index heavyweights. Above-normal monsoon forecast, better than expected Q4 numbers and strength in rupee helped indices to rally 5% last week.
The S&P BSE Sensex soared 72 points to end at 26,726 and Nifty50 surged 22 points to end at 8,179, highest closing level since October, 2015. The broader markets outperformed the benchmark indices- BSE Midcap and Smallcap indices gained 0.4% each.
"The Indian market beat the Monday blues, with the Nifty closing the day at an 8-month high of 8,179. The benchmark indices rallied more than 5% last week driven by better than expected Q4 earnings season, an above normal monsoon forecast by both IMD & Skymet, relatively stable global environment and consistent FII inflows," says Siddhartha Khemka, Head – Equity Research (Wealth), Centrum Broking.
Besides, the India Meteorological Department (IMD) will start giving state-specific monsoon forecast from the next year. The rupee weakened 25 paise to 67.28 against the dollar following month-end demand for the American currency from importers and banks.
Meanwhile, the Reserve Bank is expected to keep key rates unchanged in the next policy meeting on June 7, but might lower rates by another 50 bps during the current financial year, says a report by Morgan Stanley.
Among overseas markets, European shares hit one-month highs on Monday, while the dollar index rose to a two-month peak after Federal Reserve Chair Janet Yellen suggested that an interest rate hike in the United States may be around the corner.
In Asia, Japanese stocks edged higher as the yen weakened against the dollar. The Nikkei 225 Average closed 1.39% higher. A weaker local currency benefits exporters, as they can sell their goods at more competitive prices overseas.
Back home, Coal India was up 4% to Rs 296 after the company raised prices by 6.29% across all its subsidiaries for both regulated and non-regulated sectors.
Most auto stocks ended mixed as the companies will unveil the monthly sales data for the month of May. Tata Motors surged around 4% ahead of Q4 numbers today. Hero MotoCorp gained over 3%. However, M&M dropped marginally post the announcement of Q4 numbers.
Maruti Suzuki will recall more than 77,000 cars, most of which the Baleno hatchback, to upgrade airbag software and fix other problems, taking the number of vehicles that auto makers in India recalled so far this month to about 1.5 lakh. The stock shed over 1%.
IT exporters were among the top gainers on the back of a weakening rupee. Infosys, TCS and Wipro were up 1%-2%.
Hindalco Industries surged 12% to Rs 103 on the BSE after the company reported standalone net profit of Rs 356 crore for the quarter ended March 2016 (Q4FY16) due to lower input costs. The company had registered a profit of Rs 160 crore in the year ago quarter.
Engineering major BHEL slumped almost 6%. Net profit for March 2016 quarter was down 60% at Rs 360 crore while net revenue at Rs 9,792 crore, was down 26% over a year.
State Bank of India extended gains by almost 2% after the bank's Chairman Arundhati Bhattacharya said in a post-result conference call held on Friday that bank proposes to contain fresh slippages ratio within 2.7% of advances in the year ending 31 March 2017 (FY 2017).
The US Department of Justice (DoJ) has subpoenaed India's largest drugmaker Sun Pharmaceutical Industries, seeking information about the pricing and marketing of the generic drugs it sells in the United States, the company said on Saturday. The stock was down nearly 2%.
ITC slipped almost 1% after the stock was quoted ex-dividend. The board of directors of ITC at its meeting held on May 20, 2016, recommended dividend of Rs 8.50 (including special dividend of Rs 2) per ordinary share of Re 1 each for the financial year ended March 31, 2016.
Among other shares, Tech Mahindra was up 2% after the company said its board has approved the proposal to acquire Target TOPCO Ltd, a UK-based entity.
Dynamatic Technologies zoomed 14% after the company reported over three-fold jump in consolidated net profit at Rs 19.22 crore for the quarter ended March 2016 (Q4FY16) on the back of strong operational performance.
Muthoot Finance rallied 9% after the company reported strong 61% year on year jump in net profit at Rs 265 crore for the quarter ended March 2016 (Q4FY16), on back of healthy operational income.
Elgi Equipment rose over 8% after the company reported a six-fold jump in consolidated net profit at Rs 31 crore for the quarter ended March 2016 (Q4FY16), due to higher sales.
Ganesh Housing Corporation was locked in 20% upper circuit at Rs 133 after the board recommended a 1:2 bonus issue i.e. one equity share for every two equity shares held in the company as on the record date to be determined by the board.
With Reuters input
The S&P BSE Sensex soared 72 points to end at 26,726 and Nifty50 surged 22 points to end at 8,179, highest closing level since October, 2015. The broader markets outperformed the benchmark indices- BSE Midcap and Smallcap indices gained 0.4% each.
"The Indian market beat the Monday blues, with the Nifty closing the day at an 8-month high of 8,179. The benchmark indices rallied more than 5% last week driven by better than expected Q4 earnings season, an above normal monsoon forecast by both IMD & Skymet, relatively stable global environment and consistent FII inflows," says Siddhartha Khemka, Head – Equity Research (Wealth), Centrum Broking.
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Last batch of corporate results, monsoon advancement, and global cues will dictate the street movement this week. Also, GDP numbers, purchasing managers' index (PMI) data for services and manufacturing sectors are scheduled for this week.
Besides, the India Meteorological Department (IMD) will start giving state-specific monsoon forecast from the next year. The rupee weakened 25 paise to 67.28 against the dollar following month-end demand for the American currency from importers and banks.
Meanwhile, the Reserve Bank is expected to keep key rates unchanged in the next policy meeting on June 7, but might lower rates by another 50 bps during the current financial year, says a report by Morgan Stanley.
Among overseas markets, European shares hit one-month highs on Monday, while the dollar index rose to a two-month peak after Federal Reserve Chair Janet Yellen suggested that an interest rate hike in the United States may be around the corner.
In Asia, Japanese stocks edged higher as the yen weakened against the dollar. The Nikkei 225 Average closed 1.39% higher. A weaker local currency benefits exporters, as they can sell their goods at more competitive prices overseas.
Back home, Coal India was up 4% to Rs 296 after the company raised prices by 6.29% across all its subsidiaries for both regulated and non-regulated sectors.
Most auto stocks ended mixed as the companies will unveil the monthly sales data for the month of May. Tata Motors surged around 4% ahead of Q4 numbers today. Hero MotoCorp gained over 3%. However, M&M dropped marginally post the announcement of Q4 numbers.
Maruti Suzuki will recall more than 77,000 cars, most of which the Baleno hatchback, to upgrade airbag software and fix other problems, taking the number of vehicles that auto makers in India recalled so far this month to about 1.5 lakh. The stock shed over 1%.
IT exporters were among the top gainers on the back of a weakening rupee. Infosys, TCS and Wipro were up 1%-2%.
Hindalco Industries surged 12% to Rs 103 on the BSE after the company reported standalone net profit of Rs 356 crore for the quarter ended March 2016 (Q4FY16) due to lower input costs. The company had registered a profit of Rs 160 crore in the year ago quarter.
Engineering major BHEL slumped almost 6%. Net profit for March 2016 quarter was down 60% at Rs 360 crore while net revenue at Rs 9,792 crore, was down 26% over a year.
State Bank of India extended gains by almost 2% after the bank's Chairman Arundhati Bhattacharya said in a post-result conference call held on Friday that bank proposes to contain fresh slippages ratio within 2.7% of advances in the year ending 31 March 2017 (FY 2017).
The US Department of Justice (DoJ) has subpoenaed India's largest drugmaker Sun Pharmaceutical Industries, seeking information about the pricing and marketing of the generic drugs it sells in the United States, the company said on Saturday. The stock was down nearly 2%.
ITC slipped almost 1% after the stock was quoted ex-dividend. The board of directors of ITC at its meeting held on May 20, 2016, recommended dividend of Rs 8.50 (including special dividend of Rs 2) per ordinary share of Re 1 each for the financial year ended March 31, 2016.
Among other shares, Tech Mahindra was up 2% after the company said its board has approved the proposal to acquire Target TOPCO Ltd, a UK-based entity.
Dynamatic Technologies zoomed 14% after the company reported over three-fold jump in consolidated net profit at Rs 19.22 crore for the quarter ended March 2016 (Q4FY16) on the back of strong operational performance.
Muthoot Finance rallied 9% after the company reported strong 61% year on year jump in net profit at Rs 265 crore for the quarter ended March 2016 (Q4FY16), on back of healthy operational income.
Elgi Equipment rose over 8% after the company reported a six-fold jump in consolidated net profit at Rs 31 crore for the quarter ended March 2016 (Q4FY16), due to higher sales.
Ganesh Housing Corporation was locked in 20% upper circuit at Rs 133 after the board recommended a 1:2 bonus issue i.e. one equity share for every two equity shares held in the company as on the record date to be determined by the board.
With Reuters input