Nifty Bank index back above 30,000 after strong gains
Earnings, elections to be in focus; TCS, Infosys report Q4 numbers later this week
After struggling for most past of the session, the Sensex and Nifty ended higher today, lifted by gains in banking and IT stocks. Investors are gearing up for the upcoming March-quarter results beginning later this week. TCS and Infosys report earnings on Friday.
The Sensex ended 238 points higher at 38,939 while Nifty settled at 11,672, up 0.60%. The index for banking stocks, Nifty Bank, rose nearly 1%, led by 4.5% gain in Yes Bank and 3% advance in ICICI Bank. RBL Bank, PNB, Bank of Baroda and Axis Bank rose between 1% and 2%.
Analysts expect volatility to continue till the outcome of Lok Sabha elections is known. Lok Sabha elections begin 11 April and will be held over seven phases, followed by counting of votes on 23 May.
"In the near term, we continue to remain cautious on the Indian markets, as we believe choppiness is likely to remain high. In the coming sessions, focus of investors would shift to Q4FY19 earnings season and domestic macro data (IIP, CPI & WPI), which are likely to dictate the trend of the market," said Jayant Manglik, president for retail distribution at Religare Broking.
"Further, market participants would closely monitor the progress of central elections, behaviour of crude oil prices and fluctuation in currency, as it would further induce volatility in the markets."
Among tech stocks, HCL Technologies rose 2% after Nomura said strong deal wins could propel growth for FY20. Wipro climbed up 4% while TCS rose 1%.
Elsewhere, shares of state-run telecom equipment manufacturer ITI Ltd rose 5% after reporting a 20% increase in FY19 turnover.
Among the decliners, Indiabulls Housing Finance dropped 3%. Asian Paints also fell 3% after CLSA Research downgraded stock to 'sell' from 'outperform' citing near-term concerns on demand against a high expectation from the stock. (With Agency Inputs)
09 Apr 2019, 01:05:27 PM IST
Tech Mahindra to buy 18.1% stake each In Infotek Software and Systems, Vitaran Electronics
Shares of Sobha Limited edged higher to ₹503, extending gains to the third day. Sentiment remained positive after the real estate developer on Monday reported a 9% increase in sales bookings at a record ₹3,122.5 crore during 2018-19 on account of higher volumes. Domestic brokerage Motilal Oswal maintained "buy" on the stock, with a target price of ₹619/share. "We expect the robust launch pipeline to boost Sobha’s new sales in ensuing quarters. Moreover, steady sales momentum in the Dream Acres project, improvement in the Bengaluru market and strengthening of balance sheet are key stock catalysts," the brokerage said.
09 Apr 2019, 11:12:18 AM IST
Asian Paints shares down 2%
Shares of Asian Paints were down 2% in early trade. The paints company had said on Monday that a fire broke out at its manufacturing facility in Vishakhapatnam, Andhra Pradesh. "The fire has been brought under control. The company is in the process of assessing the extent of damage. The manufacturing operations of the plant have been affected. This will not have any impact on the business operations of the company," Asian Paints said in a communication to the exchanges on Monday. Meanwhile, CLSA has downgraded the stock to "sell" from "outperform", citing rising crude prices and weak consumer sentiment, according to BloombergQuint.
09 Apr 2019, 08:56:12 AM IST
Asian markets struggle after mixed Wall Street session
Asian shares struggled today as investors braced for key events later in the week, including the start of the US earnings season and a crucial Brexit summit, while broader concerns about slowing global growth checked sentiment.
MSCI's broadest index of Asia-Pacific shares outside Japan was basically flat. Wall Street shares delivered a mixed performance on Monday, with the Dow Jones Industrial Average losing 0.3% while the S&P 500 added 0.1%. Concerns over slowing US earnings have undermined US equities in recent sessions, though a strong jobs report last week helped to soothe frayed nerves.