Sensex extends rally, reclaims 38,000; Kotak Mahindra Bank, TCS lead gains2 min read . Updated: 15 Mar 2019, 03:55 PM IST
- Banking stocks led the gains, Bank Nifty hit a fresh high
- Losses in ITC, RIL and HUL capped gains
Markets extended their rally today but ended sharply off the day’s highs as some profit-taking emerged in last 30 minutes of trade. The BSE Sensex, which gained nearly 500 points at day's high, ended 269 points higher at 38,024, its highest close in six months. Broader Nifty settled 0.75% higher at 11,426. Financials drove the market higher, with the Nifty Bank hitting another fresh high. Bank Nifty ended 1.5% higher at 29,381.
For the week, the Sensex logged around 3.5% gain.
Sanjeev Zarbade, vice president of PCG Research at Kotak Securities, said the rally in the Indian markets is led by strong buying by foreign institutional investors on account of reduction in geopolitical risks and opinion polls give an edge to the NDA government. FII inflows totaled $1.6 billion for the past five days, he said.
Jayant Manglik, president of retail distribution at Religare Broking, said: “We're seeing a pre-election rally in anticipation of a stable government."
The Lok Sabha elections will be held in seven stages starting on April 11 and about 900 million citizens will be eligible to vote in the mammoth exercise lasting over a month.
Kotak Mahindra Bank was the top percentage gainer on Nifty, rising 4.5%. IT stocks gained, with TCS surging 2.4%.
Mid-caps, which have returned to the limelight on attractive valuations, rose, with the BSE midcap index rising 0.55%.
Losses in ITC, RIL and HUL capped overall gains for Sensex. HUL fell 2% while ITC and RIL fell around 1%.
Bharti Airtel Ltd nearly 1.4% after Jefferies downgraded the stock to "underperform" from "hold" and cut its price target to ₹270 from ₹280.
Nifty IT index rose 2.5% today, driven by 4% surge in TCS shares. Wipro, Infosys, HCL Tech and Tech Mahindra were up over 2%.
Including today’s gains, the Sensex is up around 6% so far this month, clocking around 2,150-point gain in just 10 sessions. Midcap and smallcap stocks have also logged strong gains during this period. (Read more)
The brokerage has maintained Buy on Voltas with price target of ₹650. While South (Voltas’ key market) has seen strong off take for most large brands, elongated winter in North/ Central India could lead to an extended season and result in demand being deferred to Q1FY20 for an industry that is already grappling with pricing challenges, the brokerage said.
“Voltas’ journey for a much bigger white goods pie, in our view, will drive significant scale over the ensuing three-five years given: a) its JV partner’s superior product prowess giving significant competitive advantage; and b) Voltas’ existing distribution heft," the brokerage added. Voltas shares were down nearly 0.50% at ₹600 in noon trade.
Bharti Airtel Ltd dropped 2.4% on BSE to ₹334 after Jefferies downgraded the stock to "underperform" from "hold" and cut its price target to ₹270 from ₹280. (Reuters)
State-owned Coal India on Thursday said its board has approved second interim dividend of ₹5.85 per equity share for the fiscal 2018-19. The date of payment of second interim dividend for 2018-19 is on and from March 29, the filing said. Shares were 1% lower on BSE at ₹240.
Bank Nifty, hitting a fresh hit, rising 1.4%. Among the banking stocks, Kotak Mahindra Bank, ICICI Bank, IndusInd Bank, SBI, and Bank of Baroda were up between 1.5% and 3.5%.
Indian rupee on Friday strengthened for the fifth session in a row to hit a fresh six-month high against US dollar, tracking gains in local equity and Asian currencies market. The rupee was trading at 69.13 a dollar, up from its previous close of 69.35.
Asian moved higher today as sentiment improved on a report that more progress has been made in U.S.-China trade talks and after UK lawmakers voted to delay a potentially chaotic exit from the European Union. Chinese Vice Premier Liu He spoke by telephone with US Treasury Secretary Steven Mnuchin and US Trade Representative Robert Lighthizer, with the two sides making further substantive progress on trade talks, Xinhua news agency said on Friday. MSCI broadest index of Asia-Pacific shares outside Japan gained 0.5%. The Shanghai Composite Index added 1.3%.
Japan's Nikkei made firm gains on Friday morning as a weaker yen supported exporter stocks, while chip-related companies rose on earnings from Broadcom after the Wall Street close.
The market is focused on the Bank Of Japan's policy meeting. While the BOJ is seen sticking to its assessment that Japan's economy "continues to expand moderately," it may slightly modify the language to reflect heightening external risks, the sources say. (Reuters)