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Sensex reclaims 28000, up 670 pts; TCS, Bajaj Auto in focus

12:00

The News International Team

12:50pm Market Update

The Sensex reclaimed 28000-mark in afternoon trade, up 673.74 points or 2.46 percent at 28020.56. The Nifty is inching towards 8500 level, up 200.10 points or 2.42 percent at 8477.65.

About 1595 shares have advanced, 991 shares declined, and 326 shares are unchanged on the Bombay Stock Exchange.

12:40pm Gainers & Losers

India’s largest private sector lender ICICI Bank and housing finance company HDFC topped the buying list on Sensex, up 4.5 percent each. Rivals State Bank of India and Axis Bank rallied 3.7 percent each followed by HDFC Bank with 2 percent upside.

Utility vehicle maker Mahindra & Mahindra and power producer Tata Power climbed 3.7 percent each. Shares of ITC, TCS, Reliance Industries, L&T, Tata Motors, Maruti Suzuki and Wipro surged 2-2.8 percent. However, HUL was the only loser, falling 0.5 percent.

12:25pm DB Corp in focus

DB Corp matched street expectations on Thursday by reporting a 11.2 percent growth in consolidated net profit at Rs 105.1 crore for the quarter ended December 2014. Profit in the year-ago period was Rs 94.5 crore.

PAT growth was supported by operating profit but was impacted by lower other income and higher tax & finance cost.

Consolidated total income of the print media company grew by 7 percent to Rs 554.6 crore during October-December quarter from Rs 518.2 crore in the year-ago period. Total expenses increased to Rs 392.2 crore from Rs 379.2 crore during the same period.

Operating profit (EBITDA) shot up 19.4 percent year-on-year to Rs 185 crore and margin expanded by 340 basis points to 33.3 percent in the quarter gone by.

12:00pm Market Check

The market extended rally in noon trade after the RBI surprised with a 25 basis points repo rate cut. Frontline indices gained more than 2 percent each led by gains in the Bank Nifty that hit a record high and gains in other rate sensitives. CNX Midcap index rallied to an all time high.

The Sensex climbed 601.35 points to 27948.17 and the Nifty shot up 178.95 points to 8456.50. About two shares advanced for every share declining on the Bombay Stock Exchange.

The Reserve Bank of India slashed repo rate by 25 basis points to 7.75 percent and kept the cash reserve ratio unchanged at 4 percent. Governor Raghuram Rajan says, inflation is likely to be below 6 percent by January 2016. Finance Minister, Arun Jaitley welcomed the move, saying says rate cut will lead to more money in hands of consumers.

Industry and experts cheered RBI’s move. Chief economic advisor, Arvind Subramaniam says the RBI’s move is consistent with strong disinflationary pressures and the rate cut indicated a shift in policy stance going forward. However, he adds that further rate cuts will depend on the state of the economy.

Bankers say they will take a look at base rate cuts. SBI says a rate cut will mean better demand and bond portfolio gains. IDFC’s Rajiv Lall says sentiment is most important thing and DLF echoes a similar tone, saying 25 basis points rate cut is not a game changer, but clearly indicates a change in sentiment.

In the earnings today, Bajaj Auto will release its third quarter numbers. A CNBC-TV18 poll expects revenue to grow 9 percent year-on-year and profit fall by 6 percent Y-o-Y. TCS numbers are also expected post market hours. Analysts expect a muted quarter and the street is working with a dollar revenue growth of 0.3 percent.

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