Key benchmark indices further extended gains in mid-afternoon trade, with the barometer index, S&P BSE Sensex, and the Nifty 50 index, both, hitting their highest level in more than a week. At 14:17 IST, the Sensex was up 480.69 points or 1.9% at 25,786.16. The gains for the Nifty 50 index were higher in percentage terms than those for the Sensex. The Nifty 50 index was currently up 154.90 points or 2% at 7,903.75. 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 487.70 points, or 1.93% at the day's high of 25,793.17 in mid-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 160.90 points, or 2.08% at the day's high of 7,909.75 in mid-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 market breadth indicating the overall health of the market was strong. On BSE, 1,546 shares rose and 890 shares fell. A total of 175 shares were unchanged. The BSE Mid-Cap index was currently up 0.88%. The BSE Small-Cap index was currently up 0.96%. 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. Greece's Athens General-Composite index was currently up 0.38%. 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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Shares of two-wheeler maker Bajaj Auto jumped 4.42% to Rs 2,489.80 after the company's net profit rose 29% to Rs 803 crore on 13% growth in turnover to Rs 5536 crore in Q4 March 2016 over Q4 March 2015. Operating EBITDA (earnings before interest, taxes, depreciation and amortization) before mark-to-market gains/losses on foreign currency transactions jumped 34% to Rs 1259 crore in Q4 March 2016 over Q4 March 2015. The operating EBITDA margin surged to 23.1% in Q4 March 2016 from 19.4% in Q4 March 2015. The result was announced during market hours today, 25 May 2016.
Most realty shares edged higher. Indiabulls Real Estate (up 4.94%), DLF (up 2.83%), Unitech (up 2.65%), D B Realty (up 2.27%), Housing Development and Infrastructure (HDIL) (up 2.25%), Anant Raj (up 2.12%), Oberoi Realty (up 1.81%), Parsvnath Developers (up 1.71%), Mahindra Lifespace Developers (up 1.65%), Sunteck Realty (up 1.18%), Sobha (up 0.75%) and Prestige Estates Projects (up 0.59%), edged higher. Peninsula Land (down 0.24%), Godrej Properties (down 0.85%) and Phoenix Mills (down 0.88%), edged lower.
FMCG shares were mixed. Godrej Consumer Products (up 4.30%), Britannia Industries (up 3.79%), Nestle India (up 2.25%), Marico (up 2.24%), Hindustan Unilever (up 1.91%), Dabur India (up 1.54%) and Procter & Gamble Hygiene & Health Care (up 0.01%), edged higher. Bajaj Corp (down 0.1%), Jyothy Laboratories (down 0.15%), Colgate Palmolive (India) (down 0.31%), Tata Global Beverages (down 1.48%) and GlaxoSmithKline Consumer Healthcare (down 2.23%), edged lower.
Ahluwalia Contracts (India) rose 3.09% after net profit rose 53.2% to Rs 26.71 crore on 22.1% growth in net sales to Rs 382.93 crore in Q4 March 2016 over Q4 March 2015. The result was announced after market hours yesterday, 24 May 2016.
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