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Benchmark indices ended firm and scaled record highs for fourth straight day led by strong buying among rate-sensitive sectors along with rally in global stocks, after the European Central Bank's higher-than-expected monetary measures to boost the economy in the euro zone.
The 30-share Sensex provisionally ended at 29,262.63 up 256.61 points and the 50-share Nifty gained 60.15 points at 8,821.55.
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Benchmark indices continue to trade firm led by strong buying among financials, capital goods and auto sectors. Markets have extended gains for seventh consecutive trading session after the European Central Bank (ECB)'s plan to buy Euro 60 billion ($69 billion) worth of private and public Euro-area bonds a month, popularly known as quantitative easing (QE), till September next year.
At 14:38 PM, the 30-share Sensex is up 253 points at 29,263 and the 50-share Nifty has gained 68 points at 8,829. The Sensex and the Nifty touched an intra-day high of 29,409 and 8,866 mark, respectively.
India's economy will pick up steam in the fiscal year beginning in April, but not by as much as analysts thought just a few months ago due to disappointment over a delayed revival in investment, a Reuters poll found.
However, the broader markets are underperforming the benchmark indices- BSE Midcap and Smallcap indices 0.1-1%. Market breadth on the BSE remains negative with 1,757 declines against 1,022 advances.
Meanwhile, foreign portfolio investors (FPIs) bought shares worth a net Rs 592.79 crore yesterday, as per provisional data.
At 14:03 PM, the rupee was trading strong at 61.49 against dollar due to foreign flows in domestic markets. The appreciation spree is also attributed to positive sentiments created in domestic markets after the European Central Bank announced a stimulus package yesterday.
Among Asian front, Japan's Nikkei share average rose to a near one-month high on Friday as investors' risk appetite was buoyed after the European Central Bank unveiled a bond-buying scheme to help revive the region's economy and stave off deflation.
The Nikkei ended 1.1% higher at 17,511.75 points, the highest closing level since Dec. 29. For the week, the Nikkei rose 3.8%. The broader Topix gained 1.0% to 1,403.22 and the JPX-Nikkei Index 400 added 0.9% to 12,749.04.
Back home, BSE Auto, Capital Goods and Realty indices are up 1-2% followed by counters like Metal, Oil & gas, Power and TECk, all gaining by nearly 1% each. Apart from IT, all the sectoral indices are trading in positive zone.
Among auto stocks, Tata Motors has gained around 3%, M&M has gained over 2.5%, Hero Motocorp has gained nearly 1% and Maruti Suzuki is trading marginally positive.
On Thursday Tata Motors launched the Bolt, a hatchback, starting at Rs 4.64 lakh (ex-showroom, Mumbai). The company is pitting this car against segment leaders Maruti Suzuki Swift and Hyundai Grand i10.
Financials are also leading the gains. HDFC twins have gained between 1-2%, SBI is up over 1%, ICICI Bank is up 0.3% while Axis Bank is trading flat. A foreign brokerage has forecasted better outlook for the Axis Bank compared to its peer, ICICI Bank.
Reserve Bank is expected to come out with more monetary easing in the coming months if inflation remains in the comfortable zone, top private sector lender ICICI Bank's chief Chanda Kochhar said.
Sesa Sterlite has gained nearly 2%. Yesterday, the company announced that its subsidiary Bharat Aluminium Company Limited (BALCO) has received approval of Consent to Operate (CTO) from the Chattisgarh State Pollution Control Board and other clearances for starting its Korba’s based 1200 MW Power Plant.
Dr Reddys Lab is trading marginally lower. US-based biotechnology company Curis, Inc has entered into an exclusive collaboration agreement with Aurigene Discovery Technologies, an independent wholly-owned subsidiary of Dr Reddy’s Laboratories focusing on development of select cancer therapies.
Bharti Airtel is the top Sensex gainer, up nearly 5%. The Cabinet gave an approval for swapping arrangement of spectrum between telecom and defence ministries, which will vacate 15 MHz of spectrum in 2100 Mhz in the next one year.
IT stocks are under pressure as firmed up following the launch of quantitative easing programme by ECB. An appreciating rupee has casted its shadow on the IT pack. Infosys and TCS have declined marginally.
Among other shares, Adani Group companies such as Adani Enterprises, Adani Power and Adani Port & Special Economic Zone (SEZ) are back into action and trading higher by up to 8% on the bourses.
Shares of GlaxoSmithKline Pharmaceuticals has surged 11% to Rs 3,480 on back of heavy volumes.
