Sensex rebounds over 400 points; RIL, banks lead gains4 min read . Updated: 26 Mar 2019, 03:56 PM IST
- The breadth of the market was strong with BSE midcap index rising 1%
- Banking, energy and metal stocks led the gains
Lifted by strong buying in banking shares and Reliance Industries, Indian markets ended sharply higher today. The Sensex rose 424 points to 38,233 while the broader Nifty index jumped 1.2% to 11,483. Banking, metal and energy stocks posted strong gains. The banking index on the NSE, Bank Nifty, surged 2% while the energy index gained 2.5%.
The breadth of the market was strong with BSE midcap index rising 1% and smallcap index 0.77%.
Among the banks, SBI jumped 4%, Yes Bank 3%, Kotak Mahindra Bank 2.8%, ICICI Bank 2.75%, Axis Bank 2.4%, IndusInd Bank 2.1%, and HDFC Bank 1.2%. Other notable gainers in the Sensex pack included RIL, NTPC and Vedanta, all rising over 3%.
Indian markets had sustained losses in the past two trading sessions, tracking a selloff in global markets. Global markets today recovered after the two-day selloff, lifting the domestic sentiment.
"Domestic markets are well placed, sentiments are still positive, the selloff was mainly because of fears of global slowdown and some correction after last week's rally," said Neeraj Dewan, director, Quantum Securities.
Also supporting the equities was a stronger rupee, which rose to 68.84 against the dollar.
Shares of Jet Airways Ltd rose as much as 9% after founder Naresh Goyal and wife Anita Goyal exited the company.
Shares of Mindtree Ltd were up 0.40%. The company's board is due to meet later in the day to decide about a share buyback proposal as it faces a hostile takeover bid from L&T.
Indian markets have rallied sharply this month, driven by strong inflows from foreign institutional investors.
Devang Mehta, head of equity advisory at Centrum Wealth Management, said:
"Indian markets have been recipient of robust foreign flows this entire March on the back of increased likelihood of strong political stability and policy continuity post elections and the softer stance adopted by global central banks. The buying in index heavyweights continued after market saw a couple of days of correction, which is actually a healthy sign. There seems to be enough appetite to put money to work in good Indian companies with robust fundamentals."
"With the fourth quarter result season being just around the corner, the participants will watch the earnings trajectory closely for the rally to sustain or gather further steam. As the important benchmark indices move toward life high, broader markets still offer a lot of opportunities to accumulate good quality businesses at reasonable valuations," he added. (With Agency Inputs)
Hindustan Construction Company or HCC said today that it would transfer the rights in a portfolio of its awards and claims to a consortium of investors led by BlackRock Inc for ₹1,750 crore. The deal will result in a partial write-down of the company's net worth as on March 31, and a part of the consideration will be used to prepay debts worth ₹1,250 crore, the company said in a statement. Shares surged 10% to ₹15.75 on BSE.
Treasuries fell and US stock index futures nudged higher on Tuesday as investor fears brought on by the inversion of a key part of the yield curve showed signs of ebbing.
The yield on benchmark US debt rose after closing below 2.4% on Monday, though the spread between three-month and 10-year rates remained in negative territory. Futures on the Dow Jones, Nasdaq and S&P 500 indexes all advanced, while a mixed day across sectors saw the Stoxx Europe 600 trade sideways. In Asia, Japan’s Topix Index jumped more than 2.5%, a day after it had its biggest slide this year.
Rail Vikas Nigam IPO will open on March 29 and close on April 3, Reuters reported. The government-run company will sell 253.5 million shares at a price band of ₹17-19 per share.
Shares of Mindtree were little changed at ₹939.80 on BSE. Mindtree’s board meeting on 19 March, which was supposed to consider the share buyback proposal, remained inconclusive. Mindtree’s board is scheduled to meet again today to consider the buyback proposal. The founders of Mindtree, who together own 13.32% in the company, are trying to fend off a hostile takeover bid by L&T, India’s largest engineering company, by buying back shares from public shareholders.
Shares of DLF surged 8% to ₹204 in noon trade, extending gains as the session progressed. The realty major on Monday launched its QIP offer to raise over ₹3,000 crore by selling 17.3 crore equity shares to qualified institutional investors. With an aim to become a debt-free company, DLF had last year announced plans to issue up to 17.3 crore shares through qualified institutional placement (QIP) to raise funds and pre-pay loans. According to a regulatory filing, DLF has launched its QIP on Monday and the floor price has been fixed at ₹193.01 per equity share.
Rupee edged higher to 68.83 a dollar today, tracking gains in other Asian currencies, as compared to its previous close of 68.94, Foreign investors have bought $6.32 billion in equity and $455 million in debt market.
Shares of Jet Airways, which gained 13% on Monday, jumped as much as 9% to ₹277. Jet Airways Chairman Naresh Goyal will step down from the board of the Indian carrier he founded 25 years ago and its lenders will seize control, the company said on Monday, as part of a deal led by state-run banks to save the airline. Saddled with debt of more than $1 billion, Jet had to ground more than two-thirds of its fleet as it struggled pay lenders, suppliers, pilots and leasing companies.
ICICI Prudential Life Insurance Co Ltd fell 3% to ₹312 after Mint reported that Prudential Corporation Holding will sell close to 3.71% stake in ICICI Prudential Life Insurance Company over the next two trading days to help the company meet public shareholding norms.
Asian shares bounced back today on Tuesday after two days of losses as US 10-year Treasury yields edged higher, but the outlook remained murky as investors weighed the odds of whether the US economy is in danger of slipping into recession. MSCI's broadest index of Asia-Pacific shares outside Japan rebounded 0.3% after losing 1.4% in the previous session. Australian shares were flat, while Japan's Nikkei jumped 1.8 percent after recording its biggest drop since late December on Monday. China's blue-chip CSI300 and Hong Kong's Hang Seng Index also rose, by 0.3% and 0.5%, respectively. Overnight, Wall Street shares ended little changed. US stock futures rose, with E-Minis for the S&P 500 tacking on one-third of a percent.
Oil prices gained today, pushed up by ongoing supply cuts led by producer club OPEC and by US sanctions on Iran and Venezuela, but analysts warned that signs of a sharp economic slowdown could soon drag on crude markets. Brent crude oil futures were at $67.46 per barrel, up 25 cents, or 0.4%, from their last close. Oil prices have been supported for much of 2019 by efforts by the Organization of the Petroleum Exporting Countries (OPEC) and non-affiliated allies like Russia, who have pledged to withhold around 1.2 million barrels per day (bpd) of supply this year to prop up markets.