Closing Bell: Sensex rises for third day, Nifty ends above 11,0504 min read . Updated: 06 Mar 2019, 03:54 PM IST
- Energy, FMGG and IT stocks led the markets higher
- Midcap and smallcap stocks continued to rise
Indian markets extended gains to the third day, with Sensex rising 193 points to 36,636 while Nifty settled at 11,053, up 0.55%. Energy, metal and pharma stocks led the gains today. The broader markets remained strong, with BSE midap and smallcap stocks indices rising about 0.5% and 0.1% respectively.
Among the Nifty50 stocks, Bajaj Finance, BPCL, Bharti Infratel, ICICI Bank, RIL, Titan, Hindalco, Wipro and Vedanta rose between 2% and 3%.
Some profit-taking was seen in Tata Motors, Indiabulls Housing Finance, Axis Bank and HUL.
“Despite mixed global cues, Indian bourses continued their momentum going throughout the day. The broader indices have been strong this week as the correction in small and mid-cap stocks is way overdone, hence, serious buying is emerging in these counters," says Umesh Mehta, head of research at Samco Securities.
Elara Capital also remains positive on midcap stocks. "The relative valuation of midcaps vs largecaps are at a historically low level. We believe valuations are compelling at these levels for a revival in performance of midcaps, particularly the quality midcaps which have also taken a substantial beating," the brokerage said in a note.
Shares of Quick Heal Technologies surged as much as 7% to ₹239 after the company approved buyback of up to 63,63,636 equity shares, aggregating up to 9.02% of fully paid-up equity share capital of the company, at ₹275 per equity share.
"The relative valuation of midcaps vs largecaps are at a historically low
level. We believe valuations are compelling at these levels for a revival in performance of midcaps, particularly the quality midcaps which have also taken a substantial beating," the brokerage said in a note.
Shares of Wipro climbed nearly 5% in early trade today as the stock turned ex-bonus today, meaning the stock was adjusted for bonus issue. At day’s high, shares jumped to ₹285.9 on NSE. In January, Wipro had approved the issuance of bonus equity shares in the proportion of 1:3, that is one bonus equity share of for every three fully paid-up equity shares held as on the record date.
Cigarette maker ITC has increased the price of three brands - Bristol, Flake Excel and Capstan, Press Trust of India reported. The Kolkata-headquarted company has increased the prices by about 7% to 14%. Price of Flake Excel is hiked by 11 per cent, Bristol by 6.7 per cent and Capstan by 14.5 per cent by the company, the report said. These three brands together contribute around 10 per cent to 13 per cent of total cigarette sales of ITC.
Shares of Endurance Technologies fell nearly 10% at day’s low of ₹1,140 after its promoter said it will sell 63.6 lakh equity shares or 4.52% of paid-up equity share capital of the company with greenshoe option of additional 41.9 lakh equity shares or 2.98% equity to non-retail investors on March 6 and retail investors on March 7. The floor price for the offer for sale is set at ₹1,100 – a discount of 12.6% of its Tuesday’s closing price.
Shares of Edelweiss Financial Services surged as much as 12% to ₹172.7 today. Canadian pension fund CDPQ has signed an agreement to invest more than ₹1,800 crore in ECL Finance Ltd, the non-banking financial company (NBFC) of Edelweiss Group said on Tuesday.
The broader markets continued their outperformance for fifth straight session with BSE midcap and smallcap rising about 1%. Analysts have attributed the rally to the emergence of value-buying after underperformance of midcap and smallcap stocks vis-à-vis largecaps over past few months. "The premium valuations of mid and small caps vis-a-vis large caps, post correction have normalized and hence value buying seem to be emerging," said Devang Mehta, head of equity advisory at Centrum Wealth Management.
DHFL shares surged 20% to ₹160 after the company released an independent chartered accountant firm's report on CobraPost allegations. "There are no indications to confirm the allegations that the company has created shell companies to divert funds," the report said.
"We were unable to find evidence to support the allegations that the promoters have concealed shareholding in the company neither did we find any evidence to support the allegation of insider trading," the report added.
The independent CA firm did find some lapses in relation to monitoring of post disbursal end use of funds by the borrowers. "There are certain instances of deviations and non-adherence to the terms of sanction of loans having major risk implications, especially in relation to post-sanction monitoring of fund use by borrowers. As such, non-compliances with the terms of the borrowing and possible diversion of funds, if any, by the borrowers would have escaped attention of the company," the report said.
Indian rupee on Wednesday weakened marginally tracking losses in its Asian peers on the back of dollar strength. The rupee was trading at 70.97 a dollar, down 0.07% from its previous close of 70.91. The home currency opened at 70.95 a dollar.
Asian stocks clung to tight ranges on Wednesday, as investors awaited fresh directional cues from U.S.-China trade negotiations and a weaker Wall Street finish capped broader gains, while robust U.S. economic data supported the dollar.
MSCI's broadest index of Asia-Pacific shares outside Japan was barely changed. Australian stocks added 0.2 percent while Japan's Nikkei declined 0.5 percent.
Wall Street dipped on Tuesday as a drop in General Electric shares countered positive retailer earnings and investors eyed a key resistance level for the benchmark S&P 500 after the market's run to a five-month peak on Monday.
Oil prices fell nearly 1 percent on Wednesday as bullish output forecasts by two big U.S. producers and a build in U.S. crude stockpiles outweighed ongoing OPEC-led efforts to rein in crude production.