Sensex ends at record closing high, Nifty settles near 11,9504 min read . Updated: 30 May 2019, 06:54 PM IST
- IT, banking and energy stocks led the gainers
- The broader markets underperformed but still managed to add some gains
Indian markets advanced for a fourth day in five amid continued optimism that Prime Minster Narendra Modi will adopt more policies to support economic growth. Prime Minister Narendra Modi will be sworn in for a second term later in the day and is also expected to name his new Cabinet ministers.
The benchmark S&P BSE Sensex ended 329 points higher at 39,831, marking a new closing high. The broader Nifty settled 0.71% higher at 11,945, also a new closing high. Both the indices had retreated in the previous session from record close on Tuesday.
Also lifting the sentiment are expectations of a rate cut from the Reserve Bank of India early next month.
The Modi administration, due to take office today, is expected to announce measures to arrest an economic slowdown. The prime minister is also expected to focus on infrastructure development and spending on agriculture to buoy the rural economy.
The GDP data for the three months through March will be released tomorrow and many economists expect it to be the slowest quarter in almost two years.
"A stable government is attractive and stocks are outperforming on hopes of new policies," said AK Prabhakar, head of research at IDBI Capital. "After today's ceremony (ministry announcements), we'll look at budget, tax reforms and based on these markets are positive."
IT, banking and energy stocks led the advance today. Among financials, Bajaj Finance, Yes Bank, SBI, HDFC Bank and HDFC gained between 1% and 2%. Heavyweights TCS and RIL advanced 2% and 1.3% respectively. Other top gainers in the Sensex pack included NTPC, Bharti Airtel, Infosys and Coal India.
Umesh Mehta, head of research at Samco Securities, has a cautious view on markets. "The Street is pricing in the Modi government’s efforts to improve the economy and hence the markets are soaring higher. However, indices are currently trading at very high multiples and any adverse news on local or global front can lead to correction in the market," he said.
The broader markets underperformed today but still managed to add some gains. The BSE midcap and smallcap indices rose 0.40% and 0.20% respectively. (With Agency Inputs)
The BSE midcap and smallcap indices were up 0.40% and 0.21% in late trade. Sameet Chavan of Angel Broking remains positive on midcap and smallcap segment but on a stock-specific basis.
Drug firm Alkem Laboratories rose more than 3% on BSE after it reported a jump in its March quarter result. The stock is trading at ₹1,779.75 up 3.17% on BSE, while on NSE it rose 2.79% at ₹1,777.35.
1) Consolidated net profit was up at ₹167.3 crore against ₹67.1 crore (Y-o-Y)
2) Revenue for the quarter was at ₹1,854.2 crore as against ₹1,492 crore (Y-o-Y)
Investments in the domestic capital market through participatory notes, led by equity allocation, rose to ₹81,220 crore at the end of April on hopes of favourable market conditions.
Participatory notes (P-notes) are issued by registered foreign portfolio investors (FPIs) to overseas investors who wish to be a part of the Indian stock market without registering themselves directly after going through a due diligence process.
The total value of P-note investment in domestic capital markets -- equity, debt and derivatives -- stood at ₹81,220 crore till April-end, latest Sebi data showed.
Manpasand Beverages tanked more than 10% today hitting 52-week low again amid arrest of its top officials. The shares on BSE is at ₹57.10 down 9.94% while on NSE it slipped 9.93% at ₹57.15.
Most of the sectoral indices on Nifty were trading negative lead by Nifty Auto (0.54%).
PC Jeweller fell 10% to ₹75.50 on BSE for the fourth consecutive day today ahead of it March quarter result. On NSE, it was trading at ₹76.75 down 7.60%.
1) Net profit of the company down 38.1% at ₹5 crore
2) Revenue down 3.8% at ₹139.6 crore as against ₹145.1 crore year-on-year
3) Shares of the company down 0.78% at ₹646 on BSE
In afternoon trade, TCS shares were trading 2% higher, extending gains to the fourth day. NIIT Tech, Wipro, Mindtree and Infosys were also in the green.
Shares of Voltamp Transformers, Gujarat-based transformer maker rise 14.6% to ₹1,228, highest since 2 May 2018. The company posted 60% jump in Q4 net profit and 18% rise in revenue. The stock marks sharpest intraday gain since 14 February 2018.
Sensex surged over 300 points at 39,813.91 while Nifty was at 11,940.80 surging 79.70 points.
The broader market gained since early trade and BSE Midcap and Smallcap indices were up 0.29% and 0.22% respectively.
Top contributors on BSE Midcap:
Adani Ports- 4.34%
Torrent Pharma- 3.18%
Cholamandalam Investment and Finance- 3.06%
ICICI Securities- 2.79%
Top Contributors on BSE Smallcap:
Tata Teleservices- 16.72%
Jindal Drilling and Industries- 13.89%
Deep Industries- 13.33%
Voltamp Transformers- 12.46%
DIL Ltd- 10.72%
Top contributing stocks on Nifty50 are:
Yes Bank- 2.93%
Bharti Airtel- 1.79%
Shares of Adani Power Ltd rise 6.3% to ₹51.40, highest since 25 April. The company on Wednesday posted a consolidated net profit of ₹635 crore ($90.99 million), compared with a loss of ₹653 crore a year ago.
Cadila Healthcare and Sun Pharma which were down 2.26% and 2.12% respectively, became the biggest laggards on Nifty Pharma segment.
Cadila Healthcare posted 53.26% jump in consolidated net profit at ₹590.8 crore for the fourth quarter ended 31 March 2018. Consolidated sales for the period under review stood at ₹3,152.7 crore.
Drug major Sun Pharma is at day's low, down 1.93% on Sensex. The company is the biggest loser on the 30-share index.
After reporting robust operating margins in FY19, which allowed Indian steelmakers to maintain a healthy debt profile, margins are expected to contract this fiscal, Fitch Ratings said in a note on Thursday.
Sensex soared 226.54 points, or 0.57%, at 39,737.18 while Nifty was trading at 11,916.55 rising 55.45 points, or 0.47%.
Allahabad Bank which is up by 2.64% pulls the Nifty PSU Bank sector higher making it the best performer in the block. The segment was up by 0.97% on Nifty.
Sector-wise, Nifty Auto under pressure falling 0.36%. Mahindra and Mahindra (M&M) was the biggest laggard in the segment falling 1.72%. The homegrown auto major was down after CLSA had downgraded the company from 'buy' to 'underperform' after it posted its Q4 result.
NTPC, Bharti Airtel, Tata Consultancy Services (TCS), Coal India and Asian Paints were the top gainers during the opening bell rising as much as 1.83% on Sensex.
Asian stocks tracked Wall Street losses today as latest exchanges between Beijing and Washington signalled the heightened risk of a prolonged trade war, stoking investors' concerns about the impact on global economic growth. As investors switched out of equities safe-haven assets such as government bonds found favour, with yields on German benchmark debt approaching record lows.
Sensex opens 91.54 points, or 0.22%, higher at 39,593.59. Nifty was up 14.25 points, or 0.12%, at 11,875.35.
At 9.15 am, the rupee traded at 69.74 against dollar, up 0.12% from its previous close of 69.83. The Indian had currency opened at 69.71 per dollar.
All eyes are on swearing-in ceremony of Prime Minister Narendra Modi on Thursday at Rashtrapati Bhavan.