Sensex, Nifty end higher as IT, metals surge3 min read . Updated: 01 Apr 2019, 04:36 PM IST
- Tata Motors Ltd surged 7.5%, while Hindalco Ltd closed 5% higher
- Software services company Wipro Ltd ended up 2.7%
Indian shares pared early gains, but ended higher for a third straight session on Monday, helped by a rally in IT and metal stocks, as sentiment remained buoyant on positive domestic cues. Markets moved in to April following a best monthly performance in three years last month. Hopes of a stable government in the upcoming elections, foreign inflows and a possibility of a repo rate cut by the Reserve Bank of India also whet risk appetite. The benchmark BSE Sensex closed up 0.51% at 38,871.87, after touching a record 39,115.57 in morning trade.
Tata Motors Ltd surged 7.5 percent, while Hindalco Ltd closed 5 percent higher. Software services company Wipro Ltd ended up 2.7 percent.
The country's largest car maker Maruti Suzuki India today reported 1.6% decline in sales at 1,58,076 units in March. This was in line with expectations. Shares were trading 2% higher at ₹6,816.
The IPO of Rail Vikas Nigam Ltd (RVNL), which opened on Friday, was subscribed 15% as of 12 noon today. The state-owned company is offering 25.34 crore shares at a price band of ₹17-19 per equity share. The ₹481-crore RVNL IPO will close on April 3. RVNL will be the third rail PSU to be listed after RITES and IRCON. RVNL will not receive any proceeds from the offer for sale since the government is selling about 12% stake in the company. After the IPO, the central government's stake in RVNL will drop around 88%.
Cipla Ltd fell 1% to ₹523 after the company said it has received eight good manufacturing practices observations from the US health regulator after inspection of Kurkumbh plant, Maharashtra. "US FDA conducted a product specific pre-approval
(PAI) and Good Manufacturing Practices (GMP) inspection at its Kurkumbh plant from 11th March 2019 to 20th March 2019. The inspection covered 3 units at the plant. Post the conclusion of the inspection, the Company received 8 GMP observations. The Company also received 10 observations pertaining to the PAI for a novel technology product slated for approval beyond 2024. These observations are both product specific and GMP observations related to the manufacturing and quality processes. There are
no data integrity (DI) observations. The company is committed to addressing these observations and will submit its response to the agency within the stipulated time," the pharma major said in a communication to the BSE.
Shares of Embassy Office Parks REIT were listed at ₹312, up 4% from its issue price of ₹300 on Monday. The initial public offer (IPO) of the country’s first real estate investment trust(REIT) which was open from 18-20 March was subscribed 2.58 times.
SRF Ltd fell 3% to ₹2,343.05 after the company said Gujarat Pollution Control Board had issued directions to the company to close the operations of its industrial plant at Dahej in Gujarat due to alleged non-compliance with the provisions.
The index for banking stocks, Nifty Bank, today hit a new high of 30,646, with ICICI Bank, SBI, and Bank of Baroda rising over 1%.
Asian markets rallied Monday, building on last week's healthy gains with investors buoyed by optimism over China-US trade talks and forecast-busting Chinese factory data.
Top negotiators from China and the US flagged progress in last week's discussions in Beijing on the tariffs row, with another round slated for this week in Washington.
While there have been few details, the general view on trading floors is that the economic superpowers are heading towards a deal that will end a long-running spat that helped sink global markets towards the end of last year.
Confidence an agreement will be reached helped overcome concerns about the world economy that saw a sharp sell-off in equities at the start of last week.
A positive lead from Wall Street was picked up in Asia, with Tokyo ending the morning 2.2 percent higher, Hong Kong adding 1.6 percent and Shanghai climbing 2.3 percent.
India's currency and bond markets are closed on Monday for annual account closing of banks. Trading will resume on Tuesday.
Oil prices rose on Monday, adding to gains in the first quarter when the major benchmarks posted their biggest increases in nearly a decade, as concerns about supplies outweigh fears of a slowing global economy.
Brent crude for June delivery was up by 43 cents, or 0.6 percent, at $68.01 a barrel by 0214 GMT, having risen 27 percent in the first quarter.
U.S. West Texas Intermediate (WTI) futures rose 32 cents, or 0.5 percent, to $60.46 barrel, after posting a rise of 32 percent in the January-March period.