The News International Team
The market on Tuesday rebounded for the first time in last eight sessions, driven by banks and metals stocks. Overall it was a consolidation day for the market after losing 1450 points on the Sensex in previous 7 sessions.
The 30-share BSE Sensex climbed 128.23 points to 28355.62 and the 50-share NSE Nifty rose 39.20 points to 8565.55. The BSE Midcap index gained 0.4 percent while Smallcap fell 0.1 percent.
Experts believe the AAP victory in Delhi seems already discounted by the market. Now the Budget will be next trigger after earnings, they feel.
Weak earnings and the nervousness in global markets are bigger causes for concern than the verdict of the Delhi assembly elections, says Andrew Holland, CEO, Ambit Investment Advisors.
He says expectations from the Union Budget have increased further because of the drubbing BJP has taken in the Delhi polls.
According to him, the loss in Delhi is a good reality check for the BJP and that the government needs to ensure that its policy actions translate into results on the ground.
In Delhi elections, AAP won 67 out of 70 seats with massive 61 percent of the vote share, the biggest ever win by any party in Delhi to date. However, BJP got just three seats while it was a complete rout for the Congress.
On the global front, markets were mixed. Tensions of Greek debt negotiations and geopolitical concerns in Ukraine weighed on sentiment and fresh Chinese inflation data also added to investors’ concerns. France’s CAC and Germany’s DAX rebounded with marginal gains while Britain’s FTSE was down 0.5 percent (at 16 hours IST). Asian markets also ended mixed with Shanghai rising 1.5 percent.
Back home, private sector lender ICICI Bank was the biggest contributor to Sensex gains, up 3.3 percent. State Bank of India was up 2.7 percent and HDFC Bank gained 1.5 percent.
Commercial vehicle maker Tata Motors topped the buying list on Sensex, up 4 percent followed by Mahindra & Mahindra with 2.5 percent rally.
Among metals, Sesa Sterlite, Tata Steel and Coal India surged 2-3 percent. Hindalco Industries rose 1.9 percent on Novelis’ earnings. Novelis reported an 18 percent jump in revenue with profit rising 250 percent to USD 46 million. Barclays says the marginal miss in volumes was offset by improved profitability which was driven by improving product mix towards auto.
However, IT sector was under pressure after industry body NASSCOM says that IT sector growth in FY15 has come in at 13 percent which was at the lower end of guidance of 13-15 percent. Currency volatility led to drop in overall revenues, it adds. TCS dropped 2.9 percent and Wipro declined 0.8 percent whereas Infosys gained 1.3 percent.
Shares of HDFC, Reliance Industries, Sun Pharma, HUL and NTPC were down 1-2 percent.
In the broader space, Motherson Sumi, Cadila Healthcare, ABB, Hexaware and Essar Oil gained 1-7 percent while Suven Life and United Bank fell 1-3 percent, reacting to October-December quarter earnings.