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Benchmark share indices ended over 1% higher with state-owned banks rallying the most amid reports that the government has decided to create a holding company structure for them before the Budget.
The 30-share Sensex closed 314 points higher or 1.2% up and the 50-share Nifty ended up 103 points or 1.4% up at 25,414 and 7,611 levels, respectively.
The broader markets outshined the benchmark indices. BSE Midcap and Smallcap indices ended up 1.8%, each
Asian Markets:
The Asian markets closed mixed as investors bet that a raft of U.S. and European economic data due this week will soothe recent worries over the pace of growth Japan’s Nikkie, Shanghai Composite Index climbed 0.5%, each whereas Hong Kong'Hang Seng and Straits Times Index dropped 0.1% and0.4%, each
Meanwhile, the rupee is trading at 60.05 against the US dollar as exporters and banks were seen selling dollars.
Sectors& Stocks:
All major indices ended in green. BSE Power index led the rally, up 2.8% followed by Capital goods and Healthcare indices, up 2.3% and 2%, respectively.
In contrast, Auto shares lost sheen on the BSE with BSe Auto index up marginally by 0.3%.
Among financials, ICICI Bank, Axis Bank and HDFC twins gained 0.2%-2.1%, each on renewed buying.
Moreover, shares of state-owned banks rallied by up to 8% on the NSE including Andhra Bank, Indian Overseas Bank, Bank of Baroda, Punjab National Bank, IDBI Bank and State Bank of India which closed 2-4% higher after the government decided to create a holding company structure for public sector banks before the Budget.
L&T, BHEL, NTPC and Tata Power ended up 2-3.7%, each on the hopes that the forthcoming budget session will set a road map for the economy as a whole giving priority to the infrastructure sector.
The budget is also expected to address issues and remove hurdles that can fast track capacity creation in Power sector.
Among Oil & Gas shares, GAIL inched up 1.6% on the back of falling crude oil prices. Brent crude futures is currently quoting at $113 per barrel.
ONGC rose 2.8% after the company said it will invest over Rs 5700 crore in redevelopment of its giant Mumbai High (North) oil and gas field.
Furthermore, BPCL, HPCL and IOC surged 2-3% on the Bombay Stock Exchange (BSE).
BSE Healthcare closed 1.8% higher. Cipla inched up 0.1% after signing a definitive agreement to acquire a 51% stake in a pharmaceuticals manufacturing and distribution business in Yemen (owned by a UAE-based parent company) for $21 million.
Furthermore, Ranbaxy, Sun Pharrma and Dr Reddy’s Lab, other distinguished gainers, added 2.3-4%, each.
IT shares extended its Friday rally, after Accenture Plc reported better-than-expected results for the quarter ended May 2014. TCS and Infosys advanced 0.5%-1.0%, each
Index heavyweight ITC surged 1.6% on the back of heavy volumes.
However, Auto shares including Hero Motocorp, M&M, Tata Motors and Maruti Suzuki witnessed losses and edged down 0.1%-1.0%, each on the back of inadequate monsoons. Moreover, the monthly auto sales number is due this week
Among other shares,
Kirloskar Brothers soared 18% to Rs 300, also its 52-week high on NSE, after the company said that its promoter has raised their stake in the company through open market.
Eicher Motors ended 3% higher to Rs 7,986, extending its 8% rally in past two days, after the government on June 25 announced the decision to continue with low excise duty for six months till December 31 for auto sector.
United Spirits (USL) dipped 4% to Rs 2,394, extending its 5% fall in past two trading sessions, on back of heavy volumes on the bourses. The stock hit its lowest level since March 5, 2014 on BSE.
The market breadth ended strong on the BSE with 2,130 advances and 970 declines.
