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Market advances on bargain hunting

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Capital Market
Last Updated : Mar 08 2018 | 4:04 PM IST

Key benchmark indices registered modest gains on bargain hunting after a sell-off in the last six sessions. The barometer index, the S&P BSE Sensex rose 318.48 points or 0.96% at 33,351.57, as per the provisional closing data. The Nifty 50 index advanced 82 points or 0.81% at 10,236.20, as per the provisional closing data. Gains in Asian stocks amid news of potential US tariff exemptions boosted sentiment on the domestic bourses.

Key indices started the session on a strong footing on positive Asian stocks as worries surrounding trade war eased on reports US President Donald Trump's import tariff plan may spare select countries from much of the impact. Indices trimmed gains in morning trade. Later, indices came off the day's low and traded with modest gains till afternoon trade. Key indices rebounded sharply in mid-afternoon trade. Indices closed the session with modest gains, albeit giving up some of their intraday gains in late trade.

The Sensex surged 406.88 points, or 1.23%, at the day's high of 33,439.97 in late trade, its highest level since 6 March 2018. The index rose 4.39 points, or 0.01%, at the day's low of 33,037.48 in morning trade.

The Nifty jumped 116.15 points, or 1.14%, at the day's high of 10,270.35 in late trade, its highest level since 6 March 2018. The index fell 7.80 points, or 0.08%, at the day's low of 10,146.40 in morning trade.

Among secondary indices, the S&P BSE Mid-Cap index provisionally rose 0.56%. The S&P BSE Small-Cap index provisionally advanced 0.5%. Both these indices underperformed the Sensex.

The breadth, indicating the overall health of the market, was negative. On the BSE, 1,507 shares declined and 1,203 shares advanced. A total of 156 shares were unchanged.

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The total turnover on BSE amounted to Rs 3987.59 crore, compared with the turnover of Rs 3448.81 crore registered during the previous trading session.

Most realty stocks advanced. Oberoi Realty (up 3.46%), Sobha (up 1.96%), DLF (up 1.7%), Godrej Properties (up 0.62%) and Unitech (up 0.31%) gained. HDIL (down 3.77%) and Prestige Estates Projects (down 0.6%) dropped. Indiabulls Real Estate was unchanged at Rs 197.45.

State-run lending major State Bank of India (SBI) was the biggest gainer from the 30-share Sensex pack. The stock surged 4.16% at Rs 256.90, even as it shrugged off the Reserve Bank of India's (RBI) penalty of Rs 40 lakh on the bank for non-compliance with the directions issued by the central bank on detection and impounding of counterfeit notes.

Private sector lender ICICI Bank also advanced 3.75% at Rs 297.45.

Index heavyweight Reliance Industries jumped 2.24% at Rs 911.50.

Index heavyweight and housing finance major HDFC rose 1.97% at Rs 1,796.50 after the company said it would sell 5.1% of the equity of Computer Age Management Services (CAMS) to Great Terrain Investment, Mauritius, an affiliate of Warburg Pincus group, at a total consideration of Rs 169.52 crore. The announcement was made after market hours yesterday, 7 March 2018. The company had approved selling 6.3% stake of CAMS to Great Terrain Investment, Mauritius, in December 2017.

Overseas, European stocks traded mixed ahead of the European Central Bank's (ECB) monetary policy statement is due later today, 8 March 2018. The central bank is expected to be cautious to prevent any unwanted tightening of financing conditions amid mounting global insecurities, especially in the wake of recent tariffs announcement by the US President.

Asian stocks edged higher amid news of potential US tariff exemptions. US stocks closed well off session lows yesterday, 7 March 2018 after the White House hinted Canada and Mexico could be exempt from tariffs proposed by President Donald Trump.

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First Published: Mar 08 2018 | 3:40 PM IST

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