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Benchmark share indices ended the last trading day of Samvat 2070 ( year based on the lunar calendar in ancient Hindu tradition) with gains led by auto shares buoyed by robust festival sales.
The 30-share Sensex ended up 211 points at 26,787 and the 50-share Nifty ended up 68 points at 7,996. In Samvat 2070 both the benchmark share indices gained 26% each.
Samvat 2070 has been a blockbuster year for Indian stock markets with both the Sensex and Nifty hitting new life time highs of 27,354.99 and 8,180.20, respectively. The rally was fuelled by institutional buying on the back of a stable government following Narendra Modi-led Bharatiya Janata Party's landslide victory in the general elections and annoucement of various reforms to boost the economy.
During Samvat 2070, Foreign funds were net buyers in equities to the tune of $16.9 billion (Rs 102,256 crore), while net investments by domestic mutual funds stood at Rs 11,934 crore, according to Sebi data.
Rupee:
The rupee is trading at 61.23/dollar versus its previous close of 61.31/32. Sentiment for the rupee is positive after the Bharatiya Janata Party-led government ended fuel price controls, opened up the coal sector and the party won two state elections.
Global Markets:
European shares edged up and the euro hit a one-week low against the dollar on Wednesday, driven by upbeat company earnings results and hopes of corporate bond buying by the European Central Bank. FTSE and CAC 40 lost between 0.1-0.5%. However, DAX was trading higher by 0.2%.
Japanese stocks climbed more than 2% on Wednesday as the prospect of the European Central Bank taking further action to stimulate the faltering eurozone economy boosted investor sentiment.
The Nikkei share average rose 2.6% to close at 15,195.77 points, more than recouping Tuesday's losses.
Hong Kong shares had its best daily gain since early September, underpinned by a rally in U.S. shares and optimism the Chinese government will roll out more stimulus to prop up growth.
The Hang Seng Index closed up 1.4% at 23,403.97 points, its biggest daily rise since Sept.
However, China shares finished weaker on Wednesday, reversing earlier gains, as the effects of a rebound in U.S. stock markets faded in the afternoon and weakness resurfaced.
Sectors & Stocks:
On the sectoral front, all sectoral indices ended the session in the positive territory. BSE Auto index was the top gainer up 3% followed by Capital Goods, Healthcare and Consumer Durables indices which ended higher between 0.5-1.5%.
Shares of automobiles companies were in demand on expectation of robust sales in the ongoing Diwali season.
Hero MotoCorp, Bajaj Auto, Tata Motors, Maruti Suzuki India, Mahindra and Mahindra (M&M) and Eicher Motors gained between 2.5-4% each on the BSE.
Hero Motocorp ended nearly 4% higher after the company said it expects to clock sales of around 150,000 two-wheelers on the occassion of Dhanteras on October, 21, a growth of 40-50% compared to sales on Dhanteras in 2013.
Reliance Industries was among the top Sensex gainers and surged 2% on value buying at lower levels after the stock corrected post the gas price hike.
However, shares of Oil and Natural Gas Corporation (ONGC) dipped 2% on reports that the government is expected to sell 5% stake in state-owned oil exploration and production company by early next month.
In the capital goods space, L&T and BHEL ended up between 2-3%.
Among banking stocks, SBI, HDFC Bank and ICICI Bank pared gains and ended lower between 0.2-0.5%. However, HDFC, a provider of housing finance in India, reported a 7% increase in net profit at Rs 1,357 crore for the quarter ending September 2014 and ended 1% higher. Axis Bank ended with marginal gains.
Kotak Bank’s consolidated net profit for the quarter ended September 30, 2014 increased 23% to Rs 718 crore while total income rose 33% rise to Rs 4920 crore compared to the same quarter last fiscal. The stock ended 5% higher on the BSE.
Among pharma stocks, Cipla gained 3.5% and Dr Reddy's jumped 2% while Sun Pharma rose around 1%.
Coal India slipped 0.3% as the company is not seen to be benefitting from coal reforms.
In the technology pack, Infosys, Wipro and TCS gained between 0.5-1.5%.
Among other shares, Natco Pharma rallied 9%, extending its previous day’s 4% gain, after the company said its marketing partner in the US, Breckenridge Pharmaceutical, Inc., received a tentative approval from the US FDA for Armadafinil 50 mg, 150 mg, and 250 mg tablets. Armadafinil is a generic tablet used for improving wakefulness in adults.
Dewan Housing Finance surged 9% after reporting 17.8% year-on-year (yoy) growth in net profit at Rs 152 crore for the quarter ended September 2014, on back of strong operational income. The housing finance company had profit at Rs 129 crore in the same quarter last fiscal.
Snowman Logistics soared 15% to Rs 100 on National Stock Exchange (NSE) on back of heavy volumes.
In the broader market, both the BSE Mid Cap and Small Cap indices ended higher over 1% each.
The market breadth ended firm on the BSE with 1,787 shares advancing and 1,030 shares declining.
