 "Sensex ends 500 points higher led by banks, auto shares")
Benchmark indices snapped their three-day losing streak led by the gains in financials, auto and index heavyweight stocks like RIL and ITC. Firm global cues, UK election results and government's stance on MAT lifted market sentiments.
Provisionally, the 30-share Sensex ended up 506 points at 27,105 and the 50-share Nifty closed up 134 points at 8,191.
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Benchmark indices have maintained their uptrend amid a rebound in Asian markets led primarily by the gains in financials, auto and pharmaceuticals. Government's promise of a high-level committee to look into the MAT issue has lifted sentiments while analysts have attributed the rebound in global equity markets to the return of calm in global bond markets plus the surprise victory of David Cameron’s conservative party in the UK elections.
In the broader market, both the BSE Midcap and Smallcap indices, up 1.6% each are moving largely in-line with the front-liners. Market breadth in BSE is positive with 1,792 advances against 719 declines.
Government’s decision to refer the contentious MAT issue -that has kept investors on tenterhooks for the last few sessions- to a high-level committee headed by Justice AP Shah has revived risk-appetite and has brought about a relief-rally of sorts.
As per existing norms, while long term gains are exempted foreign institutional investors are required to pay 15% tax on short-term stock gains and 5% on bond profits. However, government’s resolve to recover unpaid taxes raised the concerns over retrospective taxation. Finance Minister Arun Jaitley has estimated that such claims could reach as much as Rs 40,000 crore.
Uptrend was also helped by the comments from global rating agencies like Fitch and Moody's which said today that India credit ratings will remain unaffected by the recent surge in capital outflows as relative to its peers India's external balances are strong and adequate to withstand current outflows.
Buzzing Stocks
Except BSE Consumer Durables index, down 1.8%, all the 12 sectoral indices of BSE are trading higher. BSE Realty has gained nearly 4% the Union Cabinet eased norms for investing in real estate investment trusts (REITs). BSE Auto index and Bankex up 2.5% and 2.3% each are the next biggest gainers.
Financials have kept the momentum going for the markets in today’s session boosted by hopes that RBI may cut rates by 25 basis points sometime before the next policy review meeting taking into the sustained moderation in retail inflation. ICICI Bank has gained nearly 4%, HDFC Bank has gained over 2%, Axis Bank is up 3.2%, housing finance major HDFC is up 3.5%. Public sector lender SBI has gained 0.3%.
Tata Motors has gianed over 5%. The company has said its rights issue, which closed on May 2, was oversubscribed by 1.21 times and the company collected an amount of Rs 9,040.56 crore.
Among other auto stocks, Bajaj Auto is up over 3%, M&M has gained over 2%, Maruti Suzuki is up 1.5%.
Hero Motocorp has shed 2.5%. Hit by an impairment charge of Rs 155 crore, Hero MotoCorp, the country’s largest two-wheeler manufacturer by volume, reported a 14 per cent slump in net profit for the quarter ended March, 2015. Stand-alone net profit for the quarter was Rs 476.5 crore, against Rs 554 crore in the corresponding period of the previous year.
Oil shares are trading mixed. RIL has gained over 2% while ONGC has declined nearly 1%. Capital Goods stocks like BHEL and L&T have gained 1.5% and 2.2% each.
Pharma stocks have posted strong gains. Cipla is up nearly 5%, Dr Reddys Lab has gained nearly 3% and Sun Pharma is up 0.2%. Sun Pharma has said that the court convened shareholders' meeting on Sun Pharma Global Inc merger will be held on June 3, 2015.
Global Markets
European markets have opened higher led by UK shares after Prime Minister David Cameron’s Conservative Party succeeded to post a surprise victory in UK elections with the results declared so far and projections suggesting the party could come very close to an absolute majority in the 650-member House. FTSE 100 index is up 1.5% while CAC 40 and DAX indices have gained nearly 0.5%.
Asian markets rebounded on Friday following the return of stability in global bond markets though some caution among traders was still visible ahead of US jobs data and start of negotiations between Greece and its creditors due this weekend. Nikkei ended 0.4% higher and Hang Seng and Shanghai Composite indices gained 1% and 2.2% each.
Provisionally, the 30-share Sensex ended up 506 points at 27,105 and the 50-share Nifty closed up 134 points at 8,191.
*****************************
Benchmark indices have maintained their uptrend amid a rebound in Asian markets led primarily by the gains in financials, auto and pharmaceuticals. Government's promise of a high-level committee to look into the MAT issue has lifted sentiments while analysts have attributed the rebound in global equity markets to the return of calm in global bond markets plus the surprise victory of David Cameron’s conservative party in the UK elections.
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At 2:19PM, the 30-share Sensex was up 518 points at 27,117 and the 50-share Nifty was up 147 points at 8,204.
In the broader market, both the BSE Midcap and Smallcap indices, up 1.6% each are moving largely in-line with the front-liners. Market breadth in BSE is positive with 1,792 advances against 719 declines.
Government’s decision to refer the contentious MAT issue -that has kept investors on tenterhooks for the last few sessions- to a high-level committee headed by Justice AP Shah has revived risk-appetite and has brought about a relief-rally of sorts.
As per existing norms, while long term gains are exempted foreign institutional investors are required to pay 15% tax on short-term stock gains and 5% on bond profits. However, government’s resolve to recover unpaid taxes raised the concerns over retrospective taxation. Finance Minister Arun Jaitley has estimated that such claims could reach as much as Rs 40,000 crore.
Uptrend was also helped by the comments from global rating agencies like Fitch and Moody's which said today that India credit ratings will remain unaffected by the recent surge in capital outflows as relative to its peers India's external balances are strong and adequate to withstand current outflows.
Buzzing Stocks
Except BSE Consumer Durables index, down 1.8%, all the 12 sectoral indices of BSE are trading higher. BSE Realty has gained nearly 4% the Union Cabinet eased norms for investing in real estate investment trusts (REITs). BSE Auto index and Bankex up 2.5% and 2.3% each are the next biggest gainers.
Financials have kept the momentum going for the markets in today’s session boosted by hopes that RBI may cut rates by 25 basis points sometime before the next policy review meeting taking into the sustained moderation in retail inflation. ICICI Bank has gained nearly 4%, HDFC Bank has gained over 2%, Axis Bank is up 3.2%, housing finance major HDFC is up 3.5%. Public sector lender SBI has gained 0.3%.
Tata Motors has gianed over 5%. The company has said its rights issue, which closed on May 2, was oversubscribed by 1.21 times and the company collected an amount of Rs 9,040.56 crore.
Among other auto stocks, Bajaj Auto is up over 3%, M&M has gained over 2%, Maruti Suzuki is up 1.5%.
Hero Motocorp has shed 2.5%. Hit by an impairment charge of Rs 155 crore, Hero MotoCorp, the country’s largest two-wheeler manufacturer by volume, reported a 14 per cent slump in net profit for the quarter ended March, 2015. Stand-alone net profit for the quarter was Rs 476.5 crore, against Rs 554 crore in the corresponding period of the previous year.
Oil shares are trading mixed. RIL has gained over 2% while ONGC has declined nearly 1%. Capital Goods stocks like BHEL and L&T have gained 1.5% and 2.2% each.
Pharma stocks have posted strong gains. Cipla is up nearly 5%, Dr Reddys Lab has gained nearly 3% and Sun Pharma is up 0.2%. Sun Pharma has said that the court convened shareholders' meeting on Sun Pharma Global Inc merger will be held on June 3, 2015.
Global Markets
European markets have opened higher led by UK shares after Prime Minister David Cameron’s Conservative Party succeeded to post a surprise victory in UK elections with the results declared so far and projections suggesting the party could come very close to an absolute majority in the 650-member House. FTSE 100 index is up 1.5% while CAC 40 and DAX indices have gained nearly 0.5%.
Asian markets rebounded on Friday following the return of stability in global bond markets though some caution among traders was still visible ahead of US jobs data and start of negotiations between Greece and its creditors due this weekend. Nikkei ended 0.4% higher and Hang Seng and Shanghai Composite indices gained 1% and 2.2% each.