The market ended with strong gains on Wednesday, supported by banks and IT stocks. The barometer index, the BSE Sensex, rose 220.03 points or 0.55% to 40,051.87, as per the provisional closing data. The Nifty 50 index rose 57.25 points or 0.49% to 11,844.10, as per the provisional closing data.
In the broader markets, the S&P BSE Mid-Cap index rose 0.65% while the S&P BSE Small-Cap index rose 0.36%.
The market breadth was positive. On the BSE, 1382 shares rose and 1120 shares fell. A total of 171 shares were unchanged. In Nifty 50 index, 28 stocks advanced and 22 stocks declined.
Sentiment was upbeat amid speculations that the government is mulling over changes in income tax implications on equity investment. The media reported Tuesday that existing structures of long-term capital gains (LTCG) tax, the securities transaction tax (STT) and dividend distribution tax (DTT) are being reviewed by the Prime Minister's Office in consultation with the Finance Ministry's Revenue Department and NITI Aayog. The steps are likely to be announced before or in the February Union Budget.
A recent strong set of quarterly earnings from some frontline companies like ICICI Bank, Tata Motors and State Bank of India also underpinned sentiment.
The Nifty opened higher but quickly pared gains in early trade amid profit selling. The Nifty slipped below 11,800 in morning trade amid selling pressure. The 50-unit index firmed up once again as fresh buying emerged in early afternoon trade. The Nifty closed below 11,850 amid profit booking at higher levels.
Index pivotal Reliance Industries (RIL) hit a record high of Rs 1484. FMCG major Hindustan Unilever hit a record high of Rs 2175 today.
The Nifty Bank index rose 0.44% to 29,970.45, extending gains for fourth consecutive session. The index has risen almost 3% from its recent closing low of 29,107.95 on 24 October 2019.
PSU banks made the biggest up moves. United Bank of India (up 19.95%), Syndicate Bank (up 8.3%), UCO Bank (up 6.64%), Bank of India (up 5.96%), Union Bank of India (up 5.34%),Andhra Bank (up 5.2%), Corporation Bank (up 5.1%), State Bank of India (up 3.28%), Punjab & Sind Bank (up 3.24%), Allahabad Bank (up 3.1%), Punjab National Bank (up 2.82%), Canara Bank (up 2.64%), Bank of Baroda (up 2.63%), and Indian Bank (up 1.62%) advanced higher.
Petronet LNG gained 2.02% after the company reported 90.09% surge in consolidated net profit to Rs 1089 crore on 13.04% fall in total income to Rs 9449.70 crore in Q2 September 2019 over Q2 September 2018. The announcement was made after market hours yesterday, 29 October 2019.
SKF India fell 3.86% after the company reported a muted Q2 result. The company reported a 0.38% rise in net profit to Rs 84.62 crore on 2.17% fall in total income to Rs 770.42 crore in Q2 September 2019 over Q2 September 2018. The announcement was made after market hours yesterday, 29 October 2019.
Tata Metaliks was up 0.85%. The company reported 50.79% drop in net profit to Rs 23.39 crore on 5.73% fall in total income to Rs 517.06 crore in Q2 September 2019 over Q2 September 2018. The announcement was made after market hours yesterday, 29 October 2019.
Graphite India declined 3.54% to Rs 282.35 after the company announced poor Q2 numbers during market hours today. On consolidated basis, company's net profit tanked 83.8% to Rs 185 crore on a 62.39% drop in revenue from operations to Rs 882 crore in Q2 September 2019 as against Q2 September 2018.
Indoco Remedies surged 4.06% to Rs 160.25 after the drug maker reported a consolidated net profit of Rs 7.3 crore in Q2 September 2019 over a net loss of Rs 7.8 crore in Q2 September 2018. Net revenues rose 21.07% to Rs 285.6 crore in Q2 September 2019 as against Rs 235.9 crore in Q2 September 2018. Consolidated EBIDTA jumped 172.03% to Rs 32.1 crore in Q2 September 2019 as against Rs 11.8 crore in Q2 September 2018.
The Ramco Cements advanced 3.09% after announcing Q2 numbers during market hours. On consolidated basis, the net profit jumped 43.18% to Rs 172.26 crore onn a 11.32% increase in revenue to Rs 1,332.08 crore in Q2 September 2019 over Q2 September 2018.
Shares of Bharti Airtel rose 2.57% to Rs 369.20. Bharti Airtel reported a fall in its average revenue per user (ARPU) in the September quarter. The company recorded an ARPU of Rs 128 in the September quarter, down from Rs 129 in the June quarter. Monthly subscriber churn - the percentage of users leaving the network - dropped to 2.1% from 2.6% in the previous quarter, while average data usage per customer jumped almost 10% on quarter and over 42% on year to 13.11 GB, while voice usage per customer fell 4.5% on quarter but rose 23.7% on year. Airtel's revenue from mobile services in India was Rs 10,811 crore in the three months ended 30 September, up from Rs 10,724 crore in the June quarter. Its subscriber base grew from 276.81 million in the preceding quarter to 279.43 million in the September quarter.
The company, meanwhile, delayed its Q2 results from 29 October 2019 to 14 November 2019 as it requires more clarity on the annual gross revenue (AGR) matter arising out of recent judgement of the Supreme Court. The firm is approaching Department of Telecommunications (DoT) to seek clarity on the total amounts involved and request for them for their support to deal with the current situation.
BEML surged 4.6% to Rs 1055. Media reports suggested that the government has revisited plan for strategic stake sale in the company. The government may soon issue expression of interest (EoI) for 26% stake sale in BEML with management control. Government of India holds 54.03% stake in BEML (as on 30 September 2019).
Cochin Shipyard advanced 0.98% after the company said it signed a Rs 175.70 crore contract for designing and constructing 23 hybrid-electric passenger ferries for Kochi Water Metro Project.
Bandhan Bank lost 1.64%. The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 1 crore on the bank for non-compliance with the guidelines on promoter holding contained in 'Guidelines for Licensing of New Banks in Private Sector' dated 22 February 2013. This penalty has been imposed in exercise of powers vested in RBI taking into account the default committed by the bank in complying with the aforesaid licensing guidelines and conditions.
InterGlobe Aviation soared 7.21% to Rs 1511.95. IndiGo has placed a firm order for 300 A320neo Family aircraft. This marks one of Airbus' largest aircraft orders ever with a single airline operator. This latest IndiGo order comprises a mix of A320neo, A321neo and A321XLR aircraft. This will take IndiGo's total number of A320neo Family aircraft orders to 730. The announcement was made after market hours yesterday, 29 October 2019.
Overseas, European stocks were mixed while most Asian stocks declined in Wednesday ahead of the US Federal Reserve's interest rate decision, set to be announced later stateside.
The US Fed began its two-day policy meeting yesterday, 29 October 2019 and interest rate decision will be announced today, 30 October 2019. The Fed is largely expected to slash interest rates by 25 basis points later this week. That would mark its third rate cut for this year.
Back in Europe, the UK has confirmed it will hold a general election on 12 December after Prime Minister Boris Johnson gained approval from Parliament Tuesday night.
U.S. stocks ended with small losses on Tuesday as trade headlines and a spate of corporate earnings weighed on shares.
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