 "Rate-cut hopes drive markets higher; Nifty ends above 8,250")
Benchmark indices finished higher on hopes of economic reforms as the government defends the key reforms coupled with an anticipated rate-cut in the view of the softening inflation data.
The 30-share Sensex gained 118 points to end at 27,394 and the 50-share Nifty climbed 38 points to finish at 8,262. Market breadth on the BSE ended positive with 1,455 advances against 1,233 declines.
Going ahead, analysts expect the this range-bound movement in markets to end over the next few sessions.
"For past two weeks, the Nifty has been trading roughly in a broader range of 8,100-8,300 while stocks are witnessing erratic moves in both directions due to prevailing earning season. We expect this prevailing uncertainty to end in the coming sessions with either side decisive break in the index. Meanwhile, uphold stock specific trading approach and keep a balanced trading portfolio," said Jayant Manglik, President-retail distribution, Religare Securities in a post market note.
“Markets ended the day and the week on a positive note. Bargain hunting at lower levels helped markets gain about 1% for the week. On-schedule debt repayment by Greece eased related concerns which also led to cooling of US bond yields, which had hit highs early in the week. Delay in passing the GST Bill had an impact on the markets, we believe. Going ahead, remaining quarterly results, distribution of monsoon and pick-up in investment activity, if any, will dictate market sentiment and so will expectations of a US rate hike,” points out Dipen Shah, Head of Private Client Group Research, Kotak Securities.
RUPEE
The rupee is trading strong by five paise at 63.60 against the dollar tracking firm local equities amid sustained dollar selling by exporters.
KEY STOCKS
On the sectoral front, BSE FMCG, Healthcare, IT, Consumer Durables, Teck indices gained up to 1%. However, BSE Metal, Realty and Power indices lost sheen in today’s session and ended lower.
Rate sensitive stocks gained in today’s session as sustained fall in consumer inflation prices gave boost to hopes of a rate-cut by Reserve Bank of India. SBI, Axis Bank, M&M, Tata Motors, Bajaj Auto, Maruti Suzuki and HDFC twins ended higher up to 2.5%.
Shares of Tata Steel, Indian multinational steel-making company headquartered in Mumbai, lost 0.5% as the company anticipates to take a non-cash write-down of the goodwill and assets in the consolidated financial results in the fourth quarter for the year ended March 31,2015 of nearly Rs 6,500 crores, mostly associated to the loss-making long products business in UK.
Shares of Bharti Airtel, India’s largest telecom services provider, has gained 1.5% after it decided to commence 4G services trials for its existing customers located in Chennai, according to media reports.
Vedanta Resources reported a significantly wider full-year net loss due to a hefty writedown of its oil and gas business due to tumbling oil prices. Reacting to the news, Vedanta lost nearly 2%.
Oil exploration major RIL was down 0.7% on decline in crude oil prices. However, GIL which gained yesterday on signing MoU with Dhamra LNG Terminal (DLTPL) has dipped today on profit taking and shed 0.5 %.
The Cabinet Committee on Economic Affairs (CCEA), led by Prime Minister Narendra Modi, on Wednesday approved the disinvestment department’s plan to sell stakes in Indian Oil and NTPC as part of the Centre’s Rs 41,000-crore divestment target for public sector undertakings. NTPC dropped over 2%.
Ranbaxy Laboratories is accused in a lawsuit of conspiring with a web of lawyers and consultants to manipulate the US Food and Drug Administration (FDA) and block competition in the generic drug business. Sun Pharma which has acquired Ranbaxy ended with marginal gains.
BROADER MARKETS
In the broader market, both the BSE Midcap and Smallcap indices were up nearly 0.4% and 0.6% each.Suzlon Energy moved higher by 6% after the wind turbine maker said that has bagged an order to set up a 90 mw wind project from ReNew Power, for an undisclosed amount.
Shares of Strides Arcolab were trading higher by 4% after a pharmaceutical company said that it has received approval from the US health regulator for Lamivudine and Zidovudine tablets.
Shares of Multi Commodity Exchange of India (MCX) gained 5% after reporting a 12.6% year-on-year (y-o-y) growth in standalone net profit at Rs 49.30 crore for the quarter ended March 31, 2015 (Q4).
Jubilant FoodWorks rallied 11% after reporting 6.6% growth in same-store growth (SSG) for the quarter ended March 31, 2015 (Q4). The company, which operates Domino's Pizza and Dunkin Donuts chains, had recorded 3.4% negative SSG growth in the year-ago quarter.
Shares of Sequent Scientific climbed over 5% after the Reserve Bank of India (RBI) said that foreign investors can now invest up to 32.46% of the paid up capital of the pharmaceutical company.
The 30-share Sensex gained 118 points to end at 27,394 and the 50-share Nifty climbed 38 points to finish at 8,262. Market breadth on the BSE ended positive with 1,455 advances against 1,233 declines.
Going ahead, analysts expect the this range-bound movement in markets to end over the next few sessions.
"For past two weeks, the Nifty has been trading roughly in a broader range of 8,100-8,300 while stocks are witnessing erratic moves in both directions due to prevailing earning season. We expect this prevailing uncertainty to end in the coming sessions with either side decisive break in the index. Meanwhile, uphold stock specific trading approach and keep a balanced trading portfolio," said Jayant Manglik, President-retail distribution, Religare Securities in a post market note.
“Markets ended the day and the week on a positive note. Bargain hunting at lower levels helped markets gain about 1% for the week. On-schedule debt repayment by Greece eased related concerns which also led to cooling of US bond yields, which had hit highs early in the week. Delay in passing the GST Bill had an impact on the markets, we believe. Going ahead, remaining quarterly results, distribution of monsoon and pick-up in investment activity, if any, will dictate market sentiment and so will expectations of a US rate hike,” points out Dipen Shah, Head of Private Client Group Research, Kotak Securities.
RUPEE
The rupee is trading strong by five paise at 63.60 against the dollar tracking firm local equities amid sustained dollar selling by exporters.
KEY STOCKS
On the sectoral front, BSE FMCG, Healthcare, IT, Consumer Durables, Teck indices gained up to 1%. However, BSE Metal, Realty and Power indices lost sheen in today’s session and ended lower.
Rate sensitive stocks gained in today’s session as sustained fall in consumer inflation prices gave boost to hopes of a rate-cut by Reserve Bank of India. SBI, Axis Bank, M&M, Tata Motors, Bajaj Auto, Maruti Suzuki and HDFC twins ended higher up to 2.5%.
Shares of Tata Steel, Indian multinational steel-making company headquartered in Mumbai, lost 0.5% as the company anticipates to take a non-cash write-down of the goodwill and assets in the consolidated financial results in the fourth quarter for the year ended March 31,2015 of nearly Rs 6,500 crores, mostly associated to the loss-making long products business in UK.
Shares of Bharti Airtel, India’s largest telecom services provider, has gained 1.5% after it decided to commence 4G services trials for its existing customers located in Chennai, according to media reports.
Vedanta Resources reported a significantly wider full-year net loss due to a hefty writedown of its oil and gas business due to tumbling oil prices. Reacting to the news, Vedanta lost nearly 2%.
Oil exploration major RIL was down 0.7% on decline in crude oil prices. However, GIL which gained yesterday on signing MoU with Dhamra LNG Terminal (DLTPL) has dipped today on profit taking and shed 0.5 %.
The Cabinet Committee on Economic Affairs (CCEA), led by Prime Minister Narendra Modi, on Wednesday approved the disinvestment department’s plan to sell stakes in Indian Oil and NTPC as part of the Centre’s Rs 41,000-crore divestment target for public sector undertakings. NTPC dropped over 2%.
Ranbaxy Laboratories is accused in a lawsuit of conspiring with a web of lawyers and consultants to manipulate the US Food and Drug Administration (FDA) and block competition in the generic drug business. Sun Pharma which has acquired Ranbaxy ended with marginal gains.
BROADER MARKETS
In the broader market, both the BSE Midcap and Smallcap indices were up nearly 0.4% and 0.6% each.Suzlon Energy moved higher by 6% after the wind turbine maker said that has bagged an order to set up a 90 mw wind project from ReNew Power, for an undisclosed amount.
Shares of Strides Arcolab were trading higher by 4% after a pharmaceutical company said that it has received approval from the US health regulator for Lamivudine and Zidovudine tablets.
Shares of Multi Commodity Exchange of India (MCX) gained 5% after reporting a 12.6% year-on-year (y-o-y) growth in standalone net profit at Rs 49.30 crore for the quarter ended March 31, 2015 (Q4).
Jubilant FoodWorks rallied 11% after reporting 6.6% growth in same-store growth (SSG) for the quarter ended March 31, 2015 (Q4). The company, which operates Domino's Pizza and Dunkin Donuts chains, had recorded 3.4% negative SSG growth in the year-ago quarter.
Shares of Sequent Scientific climbed over 5% after the Reserve Bank of India (RBI) said that foreign investors can now invest up to 32.46% of the paid up capital of the pharmaceutical company.