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Benchmark indices ended marginally higher to snap three day losing streak, helped by a rebound in Chinese shares, led by bank shares.
The 30-share Sensex gained 34 points to end at 27,831 and the 50-share Nifty surged 15 points to close at 8,356.
Meanwhile, foreign institutional investors were net sellers in Indian equities worth Rs 221.52 crore on Tuesday, as per provisional stock exchange data.
The broader markets outperformed the benchmark indices- BSE Midcap and Smallcap indices gained 1% each.
Sectors & Hot Stocks:
On the sectoral front, BSE Consumer Durables index was the top gainer up 2.4% followed by BSE Bankex and Power indices up 1% and 0.7% each. However, BSE Capital Goods, IT and FMCG lost sheen and ended down between 0.4-1%.
ONGC gained 2.4%. The government has finalized plans to sell a part of its stake in Coal India, ONGC and NHPC under its disinvestment programme for the current fiscal year. Coal India ended up 0.2%. Moreover, ONGC Videsh won an Exploration Block- 14TAR-R1 in New Zealand.
Reliance Industries ended down nearly 1%. RIL and China’s Shandong Ruyi Science and Technology Group Co executed definitive agreements for a joint venture in textiles.
GAIL lost 2.2% on caution after the UP Government agreed to constitute a high power committee for GAIL’s Jagdishpur - Haldia pipeline.
The government has plans to finalise the proposal for coal linkage rationalisation and swapping arrangements of about 40 thermal power projects, a move that is expected to save up to Rs 6,000 crore in logistics cost.
The proposal includes swapping agreements for power projects of companies including Adani Power, Indiabulls Power and NTPC, among others. NTPC ended the session with marginal gains.
Tata Power gained nearly 2% after it signed an agreement for acquisition of 540 MW coal based thermal power project in Maharashtra.
Among the metal pack, Sesa Sterlite ended up 1% whereas its peer Hindalco lost 0.4%.
Rating agency CRISIL in report dated December 2, 2014 said that net interest margin of banks are expected to improve slightly in 2014-15 due to gradual recovery in the economy, control over cost of funds and better asset mix leading to higher yield on advances.
Among individual stocks, Allahabad Bank, Oriental Bank of Commerce, Canara Bank, Indian Overseas Bank and Andhra Bank are up more than 3% each. State Bank of India (SBI), Union Bank of India, Bank of India, Syndicate Bank, Punjab National Bank and Bank of Baroda, Ais Bank, ICICI Bank and HDFC Bank ended up between 0.1-5% on NSE.
Shares of Cipla ended up nearly 1.3% after the company said its Mauritius-based firm plans to divest its entire stake in China-based pharmaceutical company. Dr Reddy’s Lab ended up 0.6%.
Auto shares ended mixed. Hero Motocorp gained over 1.2%. According to news reports, the company is tying up with Snapdeal to sell motorcycles on the online platform.
Index heavyweight and Auto major, Tata Motors climbed 1.5%. Tata Motors’s unit Jaguar Land Rover recalled about 7,000 sports cars in the U.S.
Shares of Bharti Airtel witnessed profit taking and ended lower. The stock had gained in early trades on reports that the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) has set aside a penalty of Rs 650 crore imposed on the company by Department of Telecommunication (DOT) in a roaming case.
BHEL declined 2.5%. According to media reports, the company would set up an integrated solar photo-voltaic manufacturing facility of around 500 MW per annum in Maharashtra. Its peer L&T lost 1.2%.
FMCG major HUL shed 2% in today’s trade..
Sugar stocks including Bajaj Hindusthan, Balrampur Chini Mills, Dhampur Sugar and Shree Renuka surged between 5-10% as reports suggest that majority of UP sugar mills start their crushing operations.
Shares of plastic products maker Nilkamal soared 15% to Rs 492, on back of heavy volumes.
Shares in SKS Microfinance rallied 11% to Rs 388 on the NSE after UBS initiate coverage on the stock with ‘Buy’ rating and price target of Rs 500.
Shares jewellery maker such as Gitanjali Gems, Tribhovandas Bhimji Zaveri (TBZ), PC Jeweller, Rajesh Exports and Titan Company ended higher by up to 8% on reports that the government may change gold-import rules for trading houses.
The market breadth on the BSE ended firm with 1,665 shares advancing and 1,267 shares declining.
Across the Globe:
Asian shares, the dollar and oil prices all slumped on Wednesday, pulling back as global growth concerns and political uncertainty in Greece prompted a flight to safety.
Japan's Nikkei stock average tumbled 2.3%, as a stronger yen prompted investors to sell exporters' shares. Hong Kong shares finished slightly higher on Wednesday, erasing morning losses, following a rebound on mainland markets from the previous day's plunge. hina stocks rebound on Wednesday from the previous day's tumble, led by banking, property and small-cap shares as investors remained bullish about the market.
Financial spreadbetters predicted a brighter day ahead in Europe after steep losses in the previous session. Britain's FTSE 100 was expected to open 18 to 26 points higher, or as much as 0.3%; Germany's DAX was seen opening 69 to 78 points higher, or 0.8%; and France's CAC 40 was called opening 26 to 31 points higher, or 0.7%.However, Shares plummet and confidence is shattered after Greek PM calls a snap presidential election that could lead to the radical Syriza party taking power.
