The rally on the bourses gathered steam, with the barometer index, S&P BSE Sensex, and the Nifty 50 index, both, hitting their highest level in more than a week. At 13:15 IST, the Sensex was up 446.14 points or 1.76% at 25,751.61. The gains for the Nifty 50 index were higher in percentage terms than those for the Sensex. The Nifty 50 index was currently up 145.35 points or 1.88% at 7,894.20. Gains in global stocks aided the upmove on the domestic bourses.
The rally on the domestic bourses was further aided by a foreign brokerage upgrading the Indian equity market to 'overweight' from 'equalweight'. According to media reports, the brokerage has cited attractive valuations of Indian stocks compared with other emerging markets, the country's strong macroeconomic fundamentals, a recovery in earnings growth, prospects for the passage of the goods and services tax (GST) bill in the Rajya Sabha, expectation of good monsoon this year and likely further easing of interest rates by the Reserve Bank of India (RBI) as reasons for upgrading India's rating.
The Sensex jumped 451.31 points, or 1.78% at the day's high of 25,756.75 in afternoon trade, its highest level since 17 May 2016. The index rose 125.12 points, or 0.49% at the day's low of 25,430.59 in early trade. The Nifty rose 147.95 points, or 1.9% at the day's high of 7,896.80 in afternoon trade, its highest level since 17 May 2016. The index rose 60.45 points, or 0.78% at the day's low of 7,809.30 in early trade.
The broad market depicted strength. There were nearly two gainers against every loser on BSE. 1,532 shares rose and 802 shares fell. A total of 147 shares were unchanged. The BSE Mid-Cap index was currently up 0.99%. The BSE Small-Cap index was currently up 0.95%. Both these indices underperformed the Sensex.
In overseas stock markets, European stocks edged higher as eurozone finance ministers and the International Monetary Fund (IMF) reached a deal to unlock more bailout funds for debt-burdened Greece. The new payouts will save Greece from defaulting on big debt redemptions to the IMF and European Central Bank in July. Eurozone finance ministers also agreed on a road map on debt relief for Greece. Meanwhile, the outcome of a poll yesterday, 24 May 2016, showed a 13-point lead in support among Britons to stay in the European Union (EU) over their rivals who support UK's exit from the EU. Britons will vote on 23 June 2016 on whether the country should remain a member of the EU.
Asian equities edged higher after encouraging reports on the US housing market saw sharp gains in US stocks overnight. Sales of new homes in the US surged 16.6% in April 2016, the fastest pace of increase in more than eight years, data released yesterday, 24 May 2016, showed.
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Capital goods stocks rose. ABB India (up 1.88%), BEML (up 0.78%), Punj Lloyd (up 0.24%), Bharat Electronics (up 1.03%), Siemens (up 1.36%) and Thermax (up 0.37%) rose. Crompton Greaves lost 2.01%.
Engineering and construction major L&T advanced ahead of its Q4 results today, 25 May 2016. The stock was up 2.57% to Rs 1,273.30. The stock hit high of Rs 1,282 and low of Rs 1,250.50 so far during the day.
Bharat Heavy Electricals (Bhel) gained 2.59%. Bhel has successfully commissioned the first 800 megawatts (MW) supercritical thermal unit in Karnataka, which is also the highest rating unit in the state. The unit has been commissioned at the Yeramarus Thermal Power Station (TPS) located in Raichur district of Karnataka. The second unit of this project is also in an advanced stage of construction and is expected to be commissioned shortly, Bhel said during trading hours today, 25 May 2016.
Telecom stocks gained. Idea Cellular (up 1.81%), Tata Teleservices (Maharashtra) (up 2.7%) and Reliance Communications (up 1.17%) rose. MTNL fell 0.57%.
Bharti Airtel (Airtel) edged higher after the company announced the completion of a previously announced spectrum trading deal with Videocon Telecommunications (VTL). The stock was up 1.23%. On 17 March 2016, Airtel and VTL had entered into a definitive agreement wherein Airtel proposed to acquire, for an aggregate consideration of Rs 4428 crore, the rights to use spectrum in the 1800 MHz band allotted to VTL by the Government of India for six circles viz. Bihar, Gujarat, Haryana, Madhya Pradesh, UP (East) and UP (West).
Shares of Bharti Infratel were up 2.31%. Bharti Infratel is a provider of tower and related infrastructure and is a unit of Bharti Airtel.
Bliss GVS Pharma lost 6.97% after net profit fell 27.6% to Rs 4.68 crore on 10.4% decline in net sales to Rs 60.92 crore in Q4 March 2016 over Q4 March 2015. The result was announced after market hours yesterday, 24 May 2016.
P I Industries jumped 6.81% after net profit jumped 57.99% to Rs 95.30 crore on 8.56% rise in total income to Rs 591.76 crore in Q4 March 2016 over Q4 March 2015. The result was announced after market hours yesterday, 24 May 2016. P I Industries said that the growth in revenue in Q4 March 2016 was backed by 17% growth in revenue of agri-inputs business and 6% growth in revenue from custom synthesis exports. The growth in the agri-inputs business was driven by momentum within the portfolio of in-licensed products in the light of the expected good monsoon. The planned scale-up in deliveries against existing molecules combined with commissioning of two new plants at Jambusar facility led to healthy improvement in custom synthesis exports.
P I Industries said that the future business outlook remains positive, duly supported by favourable expectations of good monsoon in the key domestic market, normalization of momentum in exports and regular introduction of 2-3 products in both the segments i.e. agri-input and custom synthesis.
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