 "Nifty reclaims 8,500 on reform hopes; Sensex up 300 points")
Markets began the first day of the August series on a robust note on reform hopes after the cabinet gave approval to incorporation of changes in the GST bill as suggested by the Rajya Sabha select committee. Meanwhile, strength among the Asian peers lifted the sentiments.
By 11:35 AM, the Sensex was higher by 305 points at 28,010 and the Nifty gained 79 points at 8,501 levels. Among broader markets, BSE Midcap and Smallcap indices are up over 1%. Market breadth is positive on the BSE with 1,574 shares advancing and 832 shares declining.
RUPEE
The rupee is trading flat at 64.04 against the US dollar due to appreciation of the American currency overseas.
RESULT CAPSULE
Larsen & Toubro, ICICI Bank, CESC, Bharati Shipyard, GlaxoSmithKline Pharma, Mahindra Lifespace, Karur Vysya Bank, Sun TV, Suzlon Energy and Titan Inds are scheduled to announce their June quarter earnings today.
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STOCK TRENDS
Broad based buying in visible across all sectors with BSE Healthcare, Metal, Realty and Auto indices trading higher up to 2%.
The government of India on Thursday notified new norms, putting in place composite foreign investment limits for all sectors other than banking and defence. The decision will allow greater flexibility to foreign institutional investors (FIIs) in multi brand retail, allowing them to invest up to 49% without having to seek government approval, according to media report.
Retail stocks gained across the board. Future Retail is up 5.5%, Trent has surged 1.5% and Shoppers Stop rises 3% and Pantaloons Fashion and Retail is up 1%.
The private sector banks are in for a major booster dose as the minister of state for finance Jayant Sinha said a comprehensive package will be announced on Friday. ICICI Bank, Axis bank and HDFC Bank are trading higher between 1.5-2%.
Rate sensitives are trading higher ahead of the RBI monetary policy as the decli8ne in crude prices advancement of monsoon and neutral stance by the Federal Reserve have raised hopes of rate cut. In the realty space, Sobha, Prestige Estates, DLF, Godrej Properties are up between 1-6.5%.
In the auto pack, M&M, Hero Motocorp, Tata Motors, Bajaj Auto and Maruti Suzuki are trading higher between 1.5-3%.
Strengthening of US dollar has lifted the IT pack. TCS and Wipro are up 0.4% and 0.7%.
The healthcare stocks are surging with Dr Reddy’s Lab, Sun Pharma, Cipla and Lupin up between 0.6-3.6%.
Dr Reddy’s Laboratories reported a 13.7 per cent jump in consolidated net profit at Rs 625.6 crore in the June quarter, on the back of improved gross profit margins. The net profit was much higher than Bloomberg consensus estimates of Rs 547 crore.
Lupin announced has entered into a strategic asset purchase agreement with Germany based Temmler Pharma, a part of the Aenova Group.
Shares of Cipla surged 0.6% after its partner Sandoz received a USFDA nod to launch a generic version of Pulmicort respules.
ITC posted 3.61% rise in net profit at Rs 2,265.44 crore for the first quarter ended June 30, as compared to Rs 2,186.39 crore during the same period of 2014-15 fiscal. The stock is up nearly 2%.