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Sensex jumps 517 pts, Nifty ends 8-day fall; HDFC, ITC lead


The News International Team

It was a strong start to the truncated week as bulls fully charged on Monday, pushing the Sensex above 28000-mark and the Nifty above 8500 intraday following positive global cues. Banking & financials, FMCG, capital goods and IT stocks helped the market gain nearly 2 percent.

The 30-share BSE Sensex rallied 517.22 points or 1.88 percent to 27975.86 and the 50-share NSE Nifty climbed 150.90 points or 1.81 percent to 8492.30. Nearly three shares advanced for every share declining on the Bombay Stock Exchange.

After a big correction in last few sessions, the market gathered momentum today, which if it continues for few more days then 8600-8800 could be possible, feel experts.

With an overweight rating, Vivek Misra, Strategist- Asian Equities, Global Research & Strategy, Societe Generale, said, the investor flows have been relatively strong into India. He expects relatively strong earnings from Indian corporates over the next 2 years.

He expects potential upside of 32 percent in India by 2016 and has a Sensex target of 32,500 by the end of 2015.

The broader markets outperformed benchmarks. The BSE Midcap gained 1.93 percent and Smallcap rallied 3.4 percent.

The market will remain open for trading up to Wednesday only this week as it will be shut on Thursday and Friday for holidays on account of Mahavir Jayanti and Good Friday, respectively.

Global markets were upbeat today. Shanghai closed up 2.6 percent while Hang Seng also surged 369 points today. European markets like Germany and France also rose more than 1 percent after China unveiled more details and projections for its new Silk Road plan to boost trade and economic relations with the rest of Eurasia and Africa.

However, the rupee depreciated to 62.64 a dollar, down 23 paise compared to a close of 62.41 on Friday amidst month end demand for dollars from importers. Dollar strength and capital outflows also weighed on the rupee today.

It was a broadbased rally with the BSE Auto, Bank, Capital Goods, FMCG, Metal, Power and Realty indices rising 1.5-3 percent.

Telecom stocks like Idea Cellular and Bharti Airtel spiked 6 percent and 3.55 percent, respectively. Bank of America Merril Lynch upgraded Idea to a buy with a revised target of Rs 205. MD and CEO Himanshu Kapania of Idea told CNBC-TV18 that a significant jump in debt will be balanced by cash flows. He further said the company will hike data and voice tariffs across operations after its heavy spectrum bill of Rs 30,100 crore.

HDFC was the biggest contributor to the Sensex’ gains, up 3.5 percent after Keki Mistry (vice chairman and CEO) told CNBC-TV18 that with regards to HDFC Life the timing or amount of IPO is not decided yet and Standard Life will want to increase stake in HDFC Life but the quantum is not decided.

The part of rally in banking stocks may be ahead of RBI policy, scheduled to be held on April 7. HDFC Bank, Axis Bank, ICICI Bank and State Bank of India gained 1-3 percent.

Cigarette major ITC, engineering major L&T, state-run oil company ONGC and top coal miner Coal India shot up 3-3.6 percent.

Softare services exporter Wipro gained 1.9 percent after the company reshuffled its top management team at BFSI unit. State-run power equipment maker BHEL was up 2.6 percent on order for setting up a 4×270 MW thermal power plant from Telangana Government.

However, Hindalco Industries and Tech Mahindra lost 2-3 percent.

Cairn India dropped 1.8 percent. The Central Board of Direct Taxes stood by it’s Rs 20,497 crore draft order on Cairn India. The tax department maintained that section 9 of the Income Tax Act is not exempted under the Indo-UK Bilateral Investment Treaty.

In the broader space, Transformers & Rectifiers India shot up 20 percent on getting the third party export order amounting to Rs 440 crore. Crompton Greaves gained 3 percent on order worth Rs 115 crore from central transmission utility Power Grid Corporation for supply of power equipment.

Realty company Ahluwalia Contracts climbed 9 percent on orders worth Rs 429.61 crore for construction of institutional/residential building while Centum Electronics gained 7 percent orders worth Rs 100 crore from an Indian Defence Enterprise.

Magma Fincorp shot up 14 percent as board approved preferential allotment of equity shares worth Rs 500 crore to KKR, Indium & LeapFrog. Prime Focus surged 9 percent on BSE & NSE approvals to issue 11.34 crore shares at Rs 52/share on preferential basis.

Crude prices continued to fall as an already oversupplied market fears the addition of Iranian oil exports. The talks over Iran’s nuclear programme intensified before tomorrow’s deadline. Brent crude declined 1.35 percent to USD 55.65 a barrel and US crude dropped 1.88 percent to USD 47.95 a barrel (at 16 hours IST).

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