The News International Team
3:30 pm Market close: The market made a strong closing. The Sensex ended up 219.39 points or 0.8 percent at 27396.38 and the Nifty was up 71.80 points or 0.9 percent at 8285.60. About 1650 shares advanced, 1086 shares declined and 146 shares were unchanged.
Banks made a superb comeback led by ICICI Bank (up 8 percent), Axis Bank and SBI (both up 2 percent). Maruti, BHEL, NTPC and Tata Motors are top gainers in the Sensex. Among the losers were ITC, Coal India, Infoys, Reliance and HUL.
3:15 pm Bullish World Bank: In a major boost to the market, World Bank estimates India’s GDP growth at 7.5 percent in FY16 and 7.9 percent in FY17. It says that India needs to further rationalise subsidies. World Bank thinks tax-to-GDP ratio may rise after India implements GST but land acquisition remains hurdle in the country’s efforts to boost infrastructure.
3:00 pm Market check: The market does a somersault and surges ahead. The Sensex is up 285.89 points or 1 percent at 27462.88, and the Nifty is up 89.60 points or 1 percent at 8303.40. About 1565 shares have advanced, 1069 shares declined, and 148 shares are unchanged.
Bank Nifty soars 3 percent on short covering. Pull back seen in select mid cap stocks after recent sell off.
2:30 pm Economy outlook: Rural India has been a growth driver for auto industry, but sales are under pressure currently, said Saurabh Mukherjea of Ambit Capital. He sees an increase in corporate bad debts for private banks. Mukherjea expects sluggish economic growth for next 6-7 months, and advises investors to buy companies with strong balance sheets. He recommends avoiding stocks dependent on rural consumption and investment cycle. Ambit has cut GDP growth forecast for FY16 from 7.9 percent YoY to 7.5 percent YoY. It sees FY16 GDP to be at same levels as in FY15. Expecting next 6-7 months to be a weak economic phase for the country, the brokerage firm advises investment into companies having strong balance sheets, while recommending investors to cut exposure to rural consumption-dependent companies and to stocks that are plays on the investment cycle.
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The market is still struggling with the Sensex is down 18.16 points at 27158.83. The Nifty is up 1.20 points at 8215.00. About 1357 shares have advanced, 1185 shares declined, and 145 shares are unchanged.
ICICI Bank is still up 6 percent while Maruti, Axis Bank, Tata Motors and BHEL are top gainers in the Sensex. ITC, GAIL, L&T, HUL and Infosys are major losers.
Sugar stocks like Bajaj Hindusthan, Mawana Sugars, Sakthi Sugars are rallying as the government may announce package for sugar sector in a day or two. According to CNBC-TV18 sources in the food ministry, the package will address issues related to buffer stock. It may even include decision to hike import duty, increase ethanol blending limit and sugar release mechanism.
Meanwhile, drug major Mylan has rejected a USD 40 billion unsolicited merger offer from Israel’s Teva Pharmaceutical Industries saying the bid “grossly undervalues” the company considering its best-in-class assets, including a strong foothold in India.