Nifty edges higher; banking, auto stocks lead gains1 min read . Updated: 12 Apr 2019, 03:44 PM IST
- FMCG, auto and banking stocks led the markets higher
- Midcap and smallcap stocks also notched up gains
Indian markets closer higher today, lifted by gains in banking, auto and FMCG stocks. Investors await cues from results of Infosys Ltd and Tata Consultancy Services Ltd later in the day. Analysts expect the IT bellwethers to report a good quarter of revenue growth but profitability could be hurt due to higher costs. Infosys rose 0.52% while TCS slipped 0.25%.
Investors also eye retail inflation data, which will be released after the close of market hours.
India's retail inflation is expected to have accelerated to 2.80% in March from 2.57% in February on slightly higher food prices, a Reuters poll predicted. It, however, remains under the Reserve Bank of India's medium-term target of 4%.
Sensex rose 160 points to close at 38,767 while Nifty gained 0.40% to 11,643. Among the Sensex stocks, ITC rose 3% while Maruti Suzuki gained 2%. Among other top gainers, Axis Bank, Hero MotoCorp, ICICI Bank, Asian Paints and Vedanta rose between 1% and 2%.
In broader markets, SpiceJet Ltd rose 9% after the airline said it would induct 16 Boeing 737-800 aircraft into its fleet to 'bring down flight cancellations to nil'.
Prabhat Dairy Ltd hit an upper circuit of 5% after completing the sale of its subsidiary and dairy products business to Tirumala Milk Products.
Mortgage lender Dewan Housing Finance Corporation Ltd (DHFL) fell as much as 3 percent after Brickwork Ratings downgraded its secured NCDs and subordinated debt on Thursday.
Kotak Institutional Equities has revised target price of Gabriel India higher to ₹160 (earlier target ₹153), while maintaining a "Add" rating.
In the coming quarters, Kotak expects automobile demand to improve from the current levels and Gabriel to benefit in terms of both revenue growth and margin expansion. "Gabriel's business model provides cushion to the company's revenue and profitability during underperformance by a segment/channel/clientele. Debt free status, efficient working capital management, free cash flow generation and healthy RoE/RoCE provides comfort on the stock," the brokerage said. Shares of Gabriel India were trading higher at ₹152.50 on BSE.
SpiceJet will induct 16 Boeing 737-800 NG aircraft on dry lease and has applied to the Directorate General of Civil Aviation (DGCA) for a No Objection Certificate (NOC) to import the aircraft, the airline said in a communication to BSE. Subject to regulatory approvals, SpiceJet said, the aircraft would begin joining its fleet in the next ten days. Read: Amid Jet Airways crisis, IndiGo and SpiceJet set for a good landing in Q4)
India’s top software exporters, TCS and Infosys, report March quarter results today, kicking off the earnings season. Despite March being a seasonally weak quarter for IT companies, Elara Capital expects India IT services firms to report a good quarter of revenue growth. Another brokerage Motilal Oswal also sees IT companies reporting another quarter of “healthy" set of numbers. “There is significant revenue acceleration amid strong momentum in deal activity; however, the rupee appreciation can act as a headwind," Motilal Oswal said in a note. (TCS, Infosys to report Q4 results: 5 things to watch out for)
Asian shares were mostly flat following a choppy session on Wall Street. Investor caution prevailed ahead of the release of first-quarter corporate earnings, although stronger US economic data helped offset some concerns about global growth.
MSCI's broadest index of Asia-Pacific shares outside Japan was slightly higher.