The News International Team
After a directionless trade, the market picked up momentum in last couple of hours of trade on Monday with the Sensex rising more than 270 points intraday ahead of RBI policy. Healthcare and FMCG stocks led the market higher. The broader markets continued their outperformance.
The 30-share BSE Sensex rose 244.32 points or 0.86 percent to 28504.46 and the 50-share NSE Nifty climbed 73.65 points or 0.86 percent to 8659.90. The BSE Midcap and Smallcap indices surged more than 1 percent. More than 2 shares advanced for every share declining on the Bombay Stock Exchange.
The market scenario is likely to turn more benign over the next few months, said Sandip Sabharwal of asksandipsabharwal.com.
He feels the Iran situation is very positive from India’s perspective — both in terms of keeping crude prices down and opening up of the export market for India. For the immediate short term, Sabharwal sees the RBI policy slated Tuesday to play an important role.
RBI Governor Raghuram Rajan is unlikley to cut repo rates or CRR tomorrow, according to CNBC-TV18 poll. Experts said governor Rajan was more likely to cut the SLR. The market will, however, watch for his inflation expectations.
Pharma stocks were in huge demand today with the BSE Healthcare Index rising nearly 5 percent. Sun Pharma was the star in today’s trade, up 9 percent as the healthcare major settled its litigation for anticoagulation drug called Angiomax generic with The Medicines Company in US. Sun can market the drug June 2019 on earlier under certain circumstances. Dr Reddy’s Labs and Cipla jumped 4.3 percent and 3.6 percent, respectively.
Torrent Pharma was up 4 percent on getting USFDA nod for Exforge generic, which is a blood pressure drug. Aurobindo Pharma rallied 6 percent on US FDA nod for Sildenafil injection, the hypertension drug. AstraZeneca Pharma climbed 9 percent on signing agreement with AstraZeneca UK to market new-launch products.
State-run oil explorer ONGC was up 3.5 percent as the company received US patent on hydrogen generation process. In other news, ONGC is eyeing Mexican oil & gas blocks.
In the capital goods space, L&T rose over 1 percent on getting more orders worth Rs 5,492 crore in March. State-run power equipment maker BHEL added 1.4 percent despite weak flash results for FY15. Provisional net profit fell 62 percent to Rs 1,314 crore during the year compared to Rs 3,461 crore in previous year.
Tata Motors was up 1.6 percent as the stock was adjusted for rights issue (6 shares for every 109 shares held at Rs 450 apiece) today.
NTPC jumped 2.7 percent Arup Roy Choudhury, CEO of NTPC told CNBC-TV18 that the company has received a huge response for its inorganic growth plans and is looking to deploy over Rs 5,000 crore towards acquiring power plants.
Shares of ITC, HUL, Mahindra & Mahindra, GAIL and Hindalco Industries gained 1-4 percent. However, Reliance Industries, HDFC, ICICI Bank, Wipro, Tata Steel, Maruti Suzuki and Coal India were down 0.5-2 percent.
New Listing: Adlabs Entertainment gained 7 percent to close at Rs 192.65 on the National Stock Exchange on day one.
In the broader space, Gokaldas Exports was locked at 20 percent upper circuit as the wholly subsidiary of the company Robot Systems Pvt Ltd entered into an agreement with a subsidiary of Raymond.
Suzlon Energy gained 4.5 percent as Nomura initiated coverage with a buy and target price of Rs 38, implying a 44 percent upside. The brokerage house expects improving financials and PAT breakeven by early FY17F.
Sun TV Network tanked 9.4 percent as Enforcement Directorate issued an order to attach properties and assets worth Rs 742.58 crore belonging to Kalanithi and Dayanidhi Maran.
The BSE Realty Index was the biggest gainer among sectoral indices, up 6.4 percent; HDIL rallied 24 percenet and Orbit Corporation jumped 15 percent.