 "Sensex reclaims 27,000; rate sensitives gain")
Benchmark indices are trading strong in the noon deals tracking strength among the peers amid short covering. Discussion pertaining to MAT dispute and a drop in the crude oil prices has boosted the sentiments.
By 1.20 PM, the 30-share Sensex is higher by 470 points at 27,069 and the Nifty has gained 137 points at 8,194 after hitting 8,200 mark.
Meanwhile, rupee which touched 20-month low yesterday has rebounded in today’s trade and is trading below key 64 per dollar mark.
Furthermore, Citi has maintained benchmark BSE index target at 33,000 for December 2015.It added weak markets have given a ‘feel bad’ about January-March earnings but in real terms they are in line.
CRUDE
Crude-oil futures fell as traders awaited the release of U.S. non-farm payrolls data later in the day, which will determine the short-term strength of the dollar.
Also Read
KEY STOCKS
BSE Auto, Bankex, Realty, Healthcare, Oil & Gas indices are trading higher up to 3%. However, BSE Consumer Durables index is losing sheen and is down over 1%.
Tata Motors has gained over 5% on the BSE as its rights issue, which closed on May 2, was oversubscribed by 1.21 times.
Shares of HUL are trading over 1% ahead of its results later during the day.
Punjab National Bank has dipped 6% to Rs 146, falling nearly 9% from intra-day’s high on the NSE, after reporting a sharp 62% fall in net profit at Rs 307 crore for the fourth quarter ended March 2015 (Q4), due to higher provisioning for bad loans. The state-owned bank had posted a profit of Rs 806 crore in the year-ago quarter.
The Reserve Bank may cut rate by 25 basis point even before its monetary policy review on June 2 as inflation is easing and the US Fed tightening is expected by year end, SBI said in a research note on Thursday. The rate sensitive stocks are witnessing an upsurge in today’s trade.
Among the banking stocks, ICICI Bank, Axis Bank, HDFC twins, SBI are trading higher up to 4%.
In the auto pack, Bajaj Auto, Tata Motors, M&M have gained up to 5.5%.
In the realty space, NBCC, Unitech, Sobha Devlopers, HDIL, Oberoi Realty have climbed up to 6%.
Other notable gainers include Cipla, Tata Power, L&T, Hindalco and Dr Reddy’s Lab and are trading higher between 2-4%.
Hero MotoCorp has dropped nearly 3% after the company reported weaker-than-expected earnings. The company reported a 14% decline in net profit at Rs.477 crore in the March quarter, owing to a one-time impairment payment for equity investment in US-based Erik Buell Racing Inc. and slowing rural demand.
In the broader market, BSE Midcap and Smallcap indices are trading higher by 1.8% each and are trading in line with the large counterparts.
The market breadth is firm on the BSE with 1,790 advances versus 648 declines.