New Delhi: Resilient global markets and value buying helped India stocks snap a three-day fall. After opening with gains, Indian markets traded with positive momentum for rest of the day as investors thought the recent correction in stocks has been overdone.
Positive cues from the global markets also helped strengthen the sentiment in the domestic market. Stock markets in Asia and Europe rose after three days of losses after Chinese economy posted better-than-expected growth in the second quarter. China’s economy expanded 9.5% in April-June period. While pundits were expecting the economy to grow at 9.3%, the strong growth numbers allayed fears of a hard landing.
Sensex: 18,596 +1.00%
Nifty: 5,585 +1.07%
Hang Seng: 21,926 +1.22%
Stoxx 50: 2,710 +0.65%
DLF, Kotak Mahindra Bank, Dr Reddy’s Laboratories and Reliance Capital led the rebound in Nifty shares. DLF surged 3.78% on reports that the company is in talks to sell a stake in its insurance venture. Read more...
Dr Reddy’s Laboratories rose 3.27% after the company said it received final approval from the US Food and Drugs Administration to sell a thrombosis treatment drug in the US.
DLF: Rs 229 +3.78%
Kotak Mahindra Bank: Rs 492 +3.42%
Dr Reddy’s Laboratories: Rs 1,593 +3.27%
Reliance Capital: Rs 592 +3.00%
At the sectoral level, oil & gas, real estate, automobile and healthcare stocks led the rebound on the BSE. Subdued crude prices and buying in upstream companies helped the oil & gas stocks close the day with gains. Except information technology, all BSE sectoral indices closed the day with gains.
BSE Oil & Gas: 9,152 +1.70%
BSE Realty: 2,149 +1.69%
BSE Auto: 9,033 +1.58%
Firm sugar prices in the international markets led to a rally in the stocks of sugar mills. White and raw sugar futures in international markets surged on fears of shrinking cane acreage in the world’s largest sugar producer, Brazil.
Bajaj Hindustan: Rs 71 +4.13%
Balrampur Chini Mills: Rs 63 +3.85%
Shree Renuka Sugars: Rs 73 +3.75%
Dhampur Sugar Mills: Rs 59 +3.24%
Better than expected economic data from China revived metal stocks. Hindustan Copper gained 2.72% on firm copper prices. Three-month copper prices on the London Metal Exchange rose 0.8% to $9,725 in opening deals. Read more...
Hindustan Copper: Rs 266 +2.72%
Bhushan Steel: Rs 439 +2.83%
Jindal Saw: Rs 162 +2.49%
Overall, it has been a good day for the Indian stock markets. About 61.76% of the stocks traded on the BSE closed the day with gains.