The News International Team
Equity benchmarks saw consolidation on Monday after hitting record highs in early trade. FMCG, HDFC twins, power and healthcare stocks led the recovery in last hour of trade while oil, banks and capital goods stocks saw selling pressure.
The 50-share NSE Nifty ended at record closing high of 8344.25, up 7.25 points and the 30-share BSE Sensex rose 6.10 points to 27874.73 after hitting intraday high of 8383.05 and 28027.96, respectively. The broader markets too ended with marginal gains.
Manish Prasad of JM financial said the business confidence has grown significantly in the Indian markets. However, even if there is a correction, he expects a shallow one, at worst a 10 percent pullback.
Meanwhile, Narendra Modi inducted new ministers in its cabinet. Former Goa chief minister Manohar Parrikar took charge of the defence ministry. Suresh Prabhu will handle the railways. Jayant Sinha brought in as the minister of state for finance and Rajiv Pratap Rudy entrusted with PM’s pet project of skill development and entrepreneurship.
Aviation Minister Ashok Gajapathi Raju charted out a new policy to revive the aviation sector. The draft policy mooted listing of the Airport Authority of India and helicopter company Pawan Hans on the stock exchanges. The minister put privatisation of Air India on hold, but doesn’t rule it out. SpiceJet and Jet Airways surged 5 percent and 7 percent, respectively.
Cigarette major ITC was the top gainer, up 4 percent, may be after Health Minister Harsh Vardhan took charge of science and technology. Earlier as Union Health Minister he had focused on lowering tobacco consumption, because of which the stock had fallen.
Drug maker Sun Pharma was up more than 2 percent after its subsidiary Taro reported a 22 percent growth in net sales and 49 percent growth in net income in July-September quarter Y-o-Y. Taro’s operating margins improved to 63.9 percent from 58.6 percent during the same period.
Coal mining company Coal India rose 1.3 percent as the company signed 161 fuel supply agreements (FSAs) for a capacity of 73,675 MW. The state-owned company’s net profit fell 28 percent Y-o-Y to Rs 2,192 crore and net sales climbed 1.7 percent to Rs 15,678 crore in the quarter gone by.
Shares of HDFC, HUL, Dr Reddy’s Labs, Wipro, Hero Motocorp, Tata Power and NTPC gained 1-2 percent.
However, state-run oil producer ONGC topped the selling list, falling 3.6 percent followed by Tata Motors, ICICI Bank, Reliance Industries, Axis Bank, Hindalco Industries and Cipla declined 1-2 percent.
Engineering and construction major Larsen & Toubro was down 2 percent on reporting just 3.3 percent growth in revenue in September quarter. Profit jumped 20.5 percent led by other income.
About 1508 shares advanced while 1505 shares declined on the Bombay Stock Exchange.