 "Markets rebound; Sensex ends 501 points higher")
Benchmark indices snapped three week of losses to end nearly two percent higher on the back of aggressive short covering led by a strong rally in the auto stocks owing to higher number of export sales and new launch. Meanwhile, gains in ONGC on reports stating that the government may scrap the fuel subsidy-sharing mechanism and bear the entire burden of the oil marketing companies for 2015-16 has contributed to the surge.
Provisionally, the 30-share Sensex ended 501 points higher at 27,513 and the 50-share Nifty surged 160 points to close at 8,342.
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(updated at 3.30 PM)Benchmark indices have extended gains and are trading near day’s high led by index heavyweights like HDFC, ONGC, RIL and ITC.
At 15:03PM, the 30-share Sensex has zoomed 427 points at 27,438 and the 50-share Nifty has surged 134 points at 8,316.
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Updated at 14:30 PM
Benchmark indices continue to trade firm note up over one percent each led by a strong rally in the auto stocks owing to higher number of export sales and new launch. Meanwhile, gains in ONGC on reports stating that the government may scrap the fuel subsidy-sharing mechanism and bear the entire burden of the oil marketing companies for 2015-16 has contributed to the surge.
At 2.30PM, the 30-share Sensex has zoomed 310 points at 27,321 and the 50-share Nifty has surged 91 points at 8,272.
ECONOMY
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The Indian manufacturing economy recorded a growth slowdown during April. Total new orders increased at a weaker pace and, as a consequence, companies reduced staffing levels and raised output to a lesser degree.
At 51.3 in April, down from 52.1 in March, the headline HSBC India Purchasing Managers’ Index (PMI) – a seasonally adjusted indicator designed to give an accurate overview of operating conditions in the manufacturing economy – pointed to a weaker improvement in operating conditions across the sector. Nonetheless, the headline index recorded above the crucial 50.0 threshold for the eighteenth successive month.
AUTO PACK
Bajaj Auto has moved higher by 5% after the company reported posting positive vehicle sales growth in April after a gap of four months.
Shares of Mahindra & Mahindra are up 4% after the company reported strong growth in tractor exports during April 2015 compared with the same month last year.
Maruti Suzuki India gained 1% after the company reported a healthy 30% year on year (yoy) rise in total sales in April 2015 at 111,748 units against 86,196 units in the corresponding period last year.
Tata Motors reported 7 per cent rise in total sales at 36,205 vehicles in April compared with 33,962 units in the same period last year. However, the stock lost sheen and is down over 1%.
KEY STOCKS
On the sectoral front, all indices are trading in the positive territory led by Realty, Oil & Gas, Healthcare and Auto indices up between 2-3%.
ONGC surged over 5% on reports that the government will foot the entire subsidy bill that oil marketing companies incur on selling LPG and kerosene below market prices in FY2016. So far, ONGC, Oil India and Gail had to share a part of their profits to finance the subsidy burden of downstream firms such as Indian Oil, BPCL and HPCL.
Cipla climbed 4% as Teva conference call revealed that Nexium generic drove a large part of the revenue and gross profit growth.
Bharti Airtel has gained 1%. Top four mobile carriers including Bharti Airtel have reduced roaming charges for their subscribers effective April 30, 2015.
BHEL has advanced 1.5%. BHEL has successfully commissioned a 195 MW Thermal Unit in Bihar.
NTPC has inched up and is up 0.5%. According to media reports, NTPC will build India's biggest power plant with an annual generation capacity of 6,400 megawatt (Mw) in a joint venture with Jharkhand state utility.
Hindalco need not apply for fresh environment clearances (EC) for four blocks allotted to them in the recent auction as the government has transferred to them the approvals granted to the earlier allottees. The stock is up 3%.
Shares of the Aditya Birla Group companies - Pantaloons Fashion & Retail and Aditya Birla Nuvo (ABNL) have rallied by up to 20% after the group announced a consolidation plan of its garments business into a single entity.
Other prominent gainers include HDFC, Dr Reddy’s Lab, GAIL, SBI, ITC up between 2-3%.
In the broader market, the BSE Midcap index up nearly 1% and BSE Smallcap index, up 1.6% has performed better than the front-liners. Market breadth in BSE is positive with 1,838 advances against 793 declines.