The News International Team
The late trade rally (after a consolidation) on Thursday helped the equity benchmarks gain 1 percent ahead of January CPI and December industrial output data (to be announced later today). Upside in global markets post Russia ceasfire also supported the market.
The 30-share BSE Sensex climbed 271.13 points to 28805.10, aided by banking & financials, capital goods and auto stocks. The 50-share NSE Nifty closed above the 8700 level, up 84.15 points at 8711.55.
The broader markets outperformed benchmarks again. The BSE Midcap and Smallcap indices rallied more than 1 percent. Advancing shares outnumbered declining ones on the Bombay Stock Exchange by a ratio of 1617 to 1230.
Experts believe the Nifty may cross 9000 mark if the Budget comes as per street estimates. According to them, Russia and Ukraine agree ceasefire was one of the reasons today that helped the market post higher gains.
Geoffrey Dennis of UBS is betting on India and China in 2015. As UBS moves to a more defensive position in Europe due to Grexit fears, he says the most secure EPS forecasts over 2015 are likely to be in India and China.
On the global front, European markets like France’s CAC, Germany’s DAX gained more than 1 percent (at 16 hours IST) after Russian president Vladimir Putin said Russia and Ukraine had agreed a ceasefire. The International Monetary Fund also announced a new funding package worth USD 40 billion for four-year for Ukraine.
Asian markets also closed higher with the Nikkei rising 1.9 percent and Shanghai up 0.5 percent.
Back home, the rupee closed above 62 a dollar today, down 5 paise to 62.30 and continued its fall for the fourth consecutive day.
Power equipment maker BHEL rallied 5 percent. Its Q3 earnings, which announced after market hours, disappointed street. Net profit dropped 69.4 percent year-on-year to Rs 212.6 crore and revenue slipped 28.2 percent to Rs 6,078 crore.
Dr Reddy’s Labs surged 5.5 percent and Cipla gained 4 percent after Russia ceasefire. Shares of HDFC Bank, Infosys, L&T, ICICI Bank, Reliance Industries, Axis Bank, Maruti, Hero Motocorp, GAIL, Sesa Sterlite, NTPC and Tata Power were up 1-3 percent.
Aluminium major Hindalco Industries climbed 2 percent after the company maintained its operating performance in Q3. Operating profit jumped 46.7 percent to Rs 923 crore and margin expanded 200 basis points to 10.7 percent in Q3 on yearly basis.
ONGC also recouped its losses in late trade, up 0.35 percent. The state-run oil & gas explorer will have to pay a fuel subsidy of Rs 8,700 crore for the December quarter. CNBC-TV18 learnt that ONGC and oil PSUs may have to pay Rs 10,900 crore in subsidy as the finance ministry has agreed to pay only Rs 5,085 crore subsidy in Q3.
However, HUL, SBI, Bajaj Auto, Coal India (ahead of Q3 earnings) and Bharti Airtel declined 0.6-1.5 percent.
In the broader space, India Cements jumped 12 percent after the company approved the proposal for re-organisation of Chennai Super Kings franchise. N Srinivasan says the ownership of Chennai Super Kings will go to shareholders now.
Claris Lifesciences rallied 20 percent as media reports indicated that many Indian companies such as Zydus Cadila, Lupin and Cipla along with global majors such as Pfizer being interested in the company’s sterile injectibles business.