The News International Team
The market gained strength in last couple of hours of trade on Monday with the equity benchmarks closing at more than one month high ahead of January-March quarter earnings.
The 30-share BSE Sensex closed above the 29000-mark, up 165.06 points at 29044.44, the highest level since March 5. The 50-share NSE Nifty reclaimed 8800 level, climbing 53.65 points to end at 8834, supported by capital goods, FMCG, telecom, select oil and technology stocks.
Investment guru Marc Faber, the author of the gloom, boom and doom report, said emerging markets have become relatively inexpensive against developed markets. He sees Asia perform better than the US over the next 10 years and does not expect a rate hike from Fed this year.
The broader markets continued to see further upmove today. The BSE Midcap and Smallcap indices gained 0.3 percent and 0.8 percent, respectively. The market breadth was also positive as about 1709 shares advanced against 1123 shares declined on the BSE.
The market will remain shut on Tuesday for Dr Babasaheb Ambedkar Jayanti holiday.
Quarterly earnings season (January-March quarter) will kick off on Tuesday with ACC numbers followed by IndusInd Bank, TCS and Reliance Industries this week.
On the macro data front, March CPI inflation figure will be released later today.
Meanwhile, PM Modi spread the Make in India buzz at Hannover in Germany on the second leg of this three nation tour. Promising a predictable, stable and competitive tax regime, Modi urged top German CEOs to invest in India.
Engineering and construction major Larsen & Toubro was the biggest contributor to Sensex’s gains, up 2.3 percent on signing a MoU with French firm AREVA for nuclear power plant in Maharashtra. State-run power equipment maker BHEL jumped 3 percent as the company commissioned 600 MW thermal unit in Chhattisgarh.
Index heavyweight Reliance Industries gained 2 percent as the petrochemical major has commissioned 650 KTA PET resin plant at Dahej. With the plant commissioning, the company’s total PET capacity will increase to 3.2 MMTPA.
Drug major Sun Pharma rallied 2.7 percent after the board members of the company approved allotment of 33.49 crore equity shares to Ranbaxy shareholders.
Housing finance company HDFC was up 1 percent after the firm reduced its home loan interest rates by 20 basis points with effect from today. Country’s largest lender State Bank of India also cut interest rates by 25 basis points.
State-run Coal India gained 1 percent as divestment secretary Aradhana Johri said there will be no more divestment in the state-run mining firm for at least next six months.
GAIL was down 1 percent after Credit Suisse downgraded the stock to underperform with a target of Rs 320. The brokerage said there has been a 180 degree turn in the company’s fortunes and even with the elimination of subsidy payments, GAIL’s PAT can decline Y-o-Y in FY15-16.
Among others, shares of ITC, Bharti Airtel, HUL, Cipla, Wipro and Tata Power gained 1-3 percent while Mahindra & Mahindra, Tata Motors and Hindalco fell 1-2.6 percent followed by HDFC Bank, Axis Bank and ICICI Bank with marginal losses.
In the broader space, Shriram EPC soared 12 percent as the board has approved conversion of funded interest term loan to the tune of Rs 313 crore of the corporate debt restructuring (CDR) lenders into equity shares of the company.
Info Edge gaind 4 percent after Zomato raised USD 50 million from its existing investors. Info Edge pumped in Rs 155 crore crore to maintain its shareholding at 50.1 percent in Zomato. Bank of America Merrill Lynch said this fund raising should add Rs 10 to 88 per share to Info Edge sum of the parts.
Suven Life Sciences climbed 3 percent as the pharma company has initiated multiple ascending dose (MAD) studies in phase-I clinical trial of SUVN-G3031.
Escorts jumped 3 percent on a joint venture with Rajot-based Amul Group for manufacturing specialised tractors. Sequent Scientific surged 17 percent after the pharma firm has alloted 11 lakh warrants to promoter group entity Pronomz Ventures LLP.