Banking, auto sector stocks and index heavyweights HDFC, ITC and Infosys led the rally on the domestic bourses triggered by gains in global stocks. The barometer index, the S&P BSE Sensex, rose 561.78 points or 2.22% to 25,867.25, as per the provisional closing data. The gains for the Nifty 50 index were higher in percentage terms than those for the Sensex. The Nifty rose 186.05 points or 2.4% to 7,934.90, as per the provisional closing data. The Sensex hit its highest level in more than a week and the Nifty struck its highest level in almost four weeks as these two key benchmark indices extended gains in late trade. World stocks rose after strong US housing data. The Sensex and the Nifty hovered in positive zone throughout the trading session after opening with upward gap.
The rally on the domestic bourses was further aided by a foreign brokerage upgrading the Indian equity market to 'overweight' from 'equalweight'. According to media reports, the brokerage has cited attractive valuations of Indian stocks compared with other emerging markets, the country's strong macroeconomic fundamentals, a recovery in earnings growth, prospects for the passage of the goods and services tax (GST) bill in the Rajya Sabha, expectation of good monsoon this year and likely further easing of interest rates by the Reserve Bank of India (RBI) as reasons for upgrading India's rating.
The Sensex jumped 592.40 points, or 2.34% at the day's high of 25,897.87 in late trade, its highest level since 17 May 2016. The index rose 125.12 points, or 0.49% at the day's low of 25,430.59 at the onset of the trading session. The Nifty rose 192.35 points, or 2.48% at the day's high of 7,941.20 in late trade, its highest level since 28 April 2016. The index rose 60.45 points, or 0.78% at the day's low of 7,809.30 at the onset of the trading session.
The market breadth indicating the overall health of the market was strong. On BSE, 1,573 shares rose and 961 shares fell. A total of 185 shares were unchanged. The BSE Mid-Cap index provisionally rose 0.97%. The BSE Small-Cap index provisionally rose 0.94%. Both these indices underperformed the Sensex.
The total turnover on BSE amounted to Rs 2310 crore, lower than turnover of Rs 2608 crore registered during the previous trading session.
In overseas stock markets, European stocks edged higher as eurozone finance ministers and the International Monetary Fund (IMF) reached a deal to unlock more bailout funds for debt-burdened Greece. Greece's Athens General-Composite index was currently up 0.4%. The new payouts will save Greece from defaulting on big debt redemptions to the IMF and European Central Bank in July. Eurozone finance ministers also agreed on a road map on debt relief for Greece. Meanwhile, the outcome of a poll yesterday, 24 May 2016, showed a 13-point lead in support among Britons to stay in the European Union (EU) over their rivals who support UK's exit from the EU. Britons will vote on 23 June 2016 on whether the country should remain a member of the EU.
Asian equities edged higher after encouraging reports on the US housing market saw sharp gains in US stocks overnight. Sales of new homes in the US surged 16.6% in April 2016, the fastest pace of increase in more than eight years, data released yesterday, 24 May 2016, showed.
Index heavyweight and housing finance major HDFC rose 2.96% to Rs 1,208. The stock hit a high of Rs 1,212 and a low of Rs 1,183.60 in intraday trade.
Index heavyweight Reliance Industries (RIL) rose 0.84% to Rs 947.90. The stock hit a high of Rs 951.90 and a low of Rs 941.60 in intraday trade.
Index heavyweight and cigarette major ITC rose 2.12% to Rs 356. The stock hit a high of Rs 357.60 and a low of Rs 349.90 in intraday trade.
Index heavyweight and IT major Infosys rose 1.64% to Rs 1,207.70. The stock hit a high of Rs 1,212.85 and a low of Rs 1,196 in intraday trade.
Engineering and construction major L&T advanced ahead of its Q4 results today, 25 May 2016. The stock rose 3.60% to Rs 1,286.15. The stock hit high of Rs 1,296.90 and low of Rs 1,250.50 in intraday trade.
Bharat Heavy Electricals (Bhel) gained 4.42% after the company's announcement that it has successfully commissioned the first 800 megawatts (MW) supercritical thermal unit in Karnataka, which is also the highest rating unit in the state. The unit has been commissioned at the Yeramarus Thermal Power Station (TPS) located in Raichur district of Karnataka. The second unit of this project is also in an advanced stage of construction and is expected to be commissioned shortly, Bhel said during trading hours today, 25 May 2016.
Shares of two-wheeler maker Bajaj Auto jumped 4.26% to Rs 2,486 after the company's net profit rose 29% to Rs 803 crore on 13% growth in turnover to Rs 5536 crore in Q4 March 2016 over Q4 March 2015. Operating EBITDA (earnings before interest, taxes, depreciation and amortization) before mark-to-market gains/losses on foreign currency transactions jumped 34% to Rs 1259 crore in Q4 March 2016 over Q4 March 2015. The operating EBITDA margin surged to 23.1% in Q4 March 2016 from 19.4% in Q4 March 2015. The result was announced during market hours today, 25 May 2016.
Cipla lost 4.63% at Rs 472 after consolidated net profit fell 68.9% to Rs 81 crore on 5.6% growth in income from operations to Rs 3267 crore in Q4 March 2016 over Q4 March 2015. The company's earnings before interest, taxation, depreciation and amortization (EBITDA) declined 56.9% to Rs 219 crore in Q4 March 2016 over Q4 March 2015. The result was announced after market hours yesterday, 24 May 2016.
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