Sensex Ends Near Record High On Earnings Optimism
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Closing Bell: Sensex Ends Near Record High On Earnings Optimism
Indian equity benchmarks rose for a third day in a row with the S&P BSE Sensex closing near record highs as investors expect earnings growth to continue in June quarter.
The S&P BSE Sensex rose 0.85 percent or 305 points to 36,240 and the NSE Nifty 50 index climbed 0.87 percent or 94 points to 10,947.
June quarter earnings are likely to improve on a low base in the comparable period when traders reduced stocks in the run up to implementation of the goods and services tax in July last year, AK Prabhakar, head of research at IDBI Capital, told BloombergQuint over phone. "We are expecting double-digit earnings growth, and this will improve investor sentiment," he said.
Good monsoon rains, increase in the minimum support prices of kharif crops and a cool-off in global trade tensions are also helping the market.
In today’s session, rally was led by Reliance Industries which rose over 3 percent after Bloomberg reported that India Gas Solutions, a JV between Reliance Industries and BP Plc, will bid for city gas distribution licenses in the current auction round.
All sector gauges barring the S&P BSE Healthcare index ended higher led by the S&P BSE Energy index's 2 percent gain.
The mid- and small-cap shares outperformed their larger peers as the S&P BSE MidCap and S&P BSE SmallCap indexes rose over a percent each.
Stocks Tread Water Before Earnings; Pound Rebounds
European stocks struggled for direction on Tuesday and U.S. equity futures pointed to a modest rise at the opening as a lull in the trade war let investors contemplate the beginning of earnings season. The pound reversed some of Monday’s decline as the U.K.’s Theresa May battled to reassert control over her government.
Indiabulls Ventures Struggles Amid Block Deals
- Indiabulls Ventures has 1.73 crore shares change hands in two blocks. Stock down 0.5 percent at Rs 477.
Buyers and sellers were not immediately known
RIL-BP JV Plans To Bid For City Gas Distribution Licenses; Stock Near Day's High
Shares of the oil-to-telecom conglomerate were trading near intraday high at Rs 1,021, up 2.4 percent.
India Gas Solutions, a JV between Reliance Industries and BP Plc, will bid for city gas distribution licenses in the current auction round, Bloomberg reported citing unidentified people with knowledge of the matter.