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Benchmark indices ended firm with Nifty reclaiming 8,700 mark on fresh capital infusion by investors owing to strong global cues. A weaker than expected US manufacturing data dampened the hopes of an early rate hike by the Federal Reserve which in turn lifted the sentiments of the market participants.
Meanwhile, Finance Minister Arun Jaitley told lawmakers on Tuesday that India's current account deficit will "hopefully" be less than 1% of gross domestic product (GDP) in the fiscal year that begins in April further buoyed the trading sentiments.
Provisionally, the 30-share Sensex surged 282 points to close at 28,720 and the 50-share Nifty gained 89 points to end at 8,722.
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(updated at 3.30 PM)
Markets have turned choppy in the late noon trades owing to selling in technology stocks amid strengthening of Indian rupee. Meanwhile, investors remain cautious as they keenly wait the outcome of the Federal Open Market Committee (FOMC) monetary policy review.(updated at 3.30 PM)
At 3 PM, the 30-share Sensex is up 154 points at 28,592 and the 50-share Nifty has gained 42 points at 8,766.
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(updated at 3PM)Markets have come off day’s high during late noon trades owing to profit taking in technology stocks amid strengthening of Indian rupee. Meanwhile, investors remain cautious ahead of the two-day Federal Open Market Committee (FOMC) monetary policy review which begins later today.
Bank of America-Merrill Lynch (BofA-ML) said on Tuesday that the Sensex is likely to touch 54,000 by end-2018, but will be rangebound-to-negative over the next few months, Reuters reported.
At 2.20 PM, the 30-share Sensex is up 61 points at 28,499 and the 50-share Nifty has gained 17 points at 8,651.
RUPEE
The rupee was trading strong by 8 paise at 62.73 on increased dollar selling by banks and exporters amid weak dollar overseas on tepid US manufacturing data.
CRUDE
Brent crude oil prices reversed most of their early gains to steady below $54 per barrel on Tuesday as high ongoing oversupply dragged on the market.
HOT STOCKS
On the sectoral front, barring IT and Teck indices, all sectoral indices are trading firm with BSE Healthcare and FMCG indices gaining up to 1% each.
Metal shares are gaining on prospect of further stimulus measures from China which may raise hopes of a boost in demand in the biggest consumer. Hindalco, Sesa Sterlite, Tata Steel are up between 0.5-3%.
Shares of Tata Motors are trading higher by 2% on expectations of a revival in the demand for commercial vehicles.
Sun Pharmaceuticals Industries, the pharmaceutical giant has surpasses the State Bank of India (SBI), the country’s largest public-sector lender in overall market capitalization (m-cap) ranking. The stock is up nearly 1%. Among its peers, Cipla and Dr Reddy’s lab have gained up to 2.5%.
Banks have shown healthy growth in their advance tax deposit this quarter, with the highest payer, State Bank of India, depositing Rs 1,750 crore, 20 per cent higher than in the corresponding period of the previous year.
According to sources, ICICI Bank and YES Bank have shown 32 per cent and 30 per cent jump in their tax deposit to Rs 1,295 and Rs 260 crore, respectively, in the quarter. Advance tax numbers are significant, as they are used by analysts to reverse-calculate profit before taxes. Banking shares which surged in the morning deals have slipped in the negative terrain owing to profit booking at higher levels. SBI, ICICI Bank, HDFC Bank, Axis Bank are down between 0.1-0.5%.
After the passage of the insurance Bill, Indian promoters of life insurance companies are expected to see inflows of around Rs 50,000 crore through stake sale to foreign partners or other financial intermediaries and issue of more shares. Kotak Institutional Equities, in a recent report, says the top five life insurance companies – Bajaj Allianz, HDFC Standard Life, ICICI Prudential, Max Life and SBI Life – stand to make capital gains of Rs 20,000 crore if they pare their stake to 51 per cent, without issuing more shares. The report said that improving 'Annual Premium Equivalent' (APE) flows on strong capital markets will boost Embedded Value (EV) growth, driving valuations of insurance companies (and capital gains for their parent). Shares of HDFC are trading higher by 2.5%.
A strong rupee has casted its shadow on the IT pack. Infosys is down 2% while Wipro has dropped 0.5%.
Having failed to attract any Japanese or Korean shipbuilders to build LNG vessels in India, PSU firm GAIL (India) would reissue the multi-billion dollar tender with “changed norms”. The gas marketing and trading company was forced by the government to buy one-third of LNG ships, required to ferry gas from the US starting 2017, from Indian manufacturers, according to media reports. GAIL is down 0.4%.
Selling is evident in the telecom major Bharti Airtel. The stock is down 1% and has emerged as the top loser.
Coal India, Tata Power, HUL, M&M are some of the notable losers and are down up to 1%.
Shares of Jindal Steel and Power (JSPL) have tanked 10% to Rs 170 on the Bombay Stock Exchange (BSE) in noon trade.
According to Business Standard reports, of the 34 blocks, auctioned in two phases, letters of allocation for eight have not been signed with the successful bidders. These blocks, according to the ministry of coal, had comparatively low bids and would need a re-look by the Nominated Authority (NA) for the re-allocation.
In the broader market, the BSE Mid-cap and Small-cap are up between 0.2-0.3%.
Market breadth has turned weak on the BSE with 1,412 losers against 1,226 gainers.
