Markets end higher on Nov F&O expiry

Markets finished the last day of November derivatives series on a higher note due to strength in energy and metal shares. Meanwhile, the sentiment cheered on the D-Street on hopes of the passage of the crucial GST bill during the winter session of the Parliament.

Provisionally, the Sensex closed 210 points higher at 25,985 and the Nifty gained 61 points to close at 7,892.

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(updated at 3:30 PM)

Markets scaled higher on the last day of November derivatives series due to strength in energy and metal shares. Meanwhile, the sentiment cheered on the D-Street on hopes of the passage of the crucial GST bill during the Winter session of the Parliament.

 

A firm opening in the European market amid rising prospects of further easing by the European Central Bank at a policy meeting next week uplifted the mood.

By 2:40 pm, the Sensex was higher by 218 points at 25,994 and the Nifty gained 64 points at 7,896.

Sun Pharma emerged as the stellar performer for the day as the shares of the drug maker surged 4% after it shelved plans to invest in wind energy project in the United States following investor concerns.

Meanwhile, its counterpart Dr Reddy’s cracked 7% on reports that the USFDA might withhold approval of the company's fresh drugs and stop import if no corrective action is taken. However, the company is in the process of responding to the warning letter issued on November 5 by the USFDA over quality control issues and other violations at three of its manufacturing facilities. Also, Lupin also dropped 1%.

Some action was witnessed in the auto pack with Hero Motocorp recovering from its day’s low and gaining over 1% after US private equity firm Bain Capital announced that it would be selling shares in Hero MotoCorp to raise as much as $116 million, or about Rs 769.72 crore. 

Among its peers Tata Motors saw buying and climbed 4% after Jaguar Land Rover announced doubling of capacity of its Midland-based engine manufacturing centre, with an investment of £450 million (Rs 4,500 crore). M&M also followed the tandem and edged up on the launch of the automatic variant of the XUV5OO priced at Rs 15.36 lakh (ex-showroom, Navi Mumbai).

Another splendid rally was shown by Videocon after Videocon Telecommunications, a subsidiary of Videocon Industries, on Tuesday sold its spectrum in Gujarat and UP (West) circles to Aditya Birla group’s Idea Cellular at a valuation of Rs 3,310 crore. Meanwhile, Idea gained 3%.

In the financial segment, shares of Axis Bank inched up on receiving in-principle approval from the RBI to set up and operate trade receivables discounting system (TReDS) for improving flow of funds to the MSME sector. In addition, ICICI Bank and SBI added 1% each.

Renewed buying interest was seen in the metal pack as the as copper prices jumped in global commodity markets. Tata Steel, Hindalco and Vedanta shot up between 0.5-2%.

Amid a firm rally, shares of liquor makers slumped on reports that Bihar may ban the sale of alcohol. Radico Khaitan, United Spirits and United Breweries dropped between 2-7%.