Sensex Ends Above 38,000 For First Time Led By Banks
Closing Bell: Sensex, Nifty Extend Record Breaking Spree
Indian equity benchmarks extended record breaking spree with S&P BSE Sensex closing above 38,000 for first time. Today’s up move was fueled by a rally in banking shares.
The S&P BSE Sensex rose 0.36 percent or 137 points to 38,024 and the NSE Nifty 50 index climbed 0.2 percent or 21 points to record closing high of 11,471.
Liquidity, good earnings and foreign flows turning positive are driving Indian markets to new highs, Sanjiv Bhasin, EVP-markets & corporate affairs at IIFL, told BloombergQuint over the phone. “There is upside still left in mid- and small-cap stocks and there has been an early Diwali with this rally.”
Last year, broader markets outperformed and this time large caps are outperforming as local and global flows are chasing heavyweights, he said. Forget about discounts, stocks like Reliance Industries Ltd., Hindustan Unilever Ltd., ITC Ltd. and Tata Consultancy Services Ltd. will command a premium from hereon, Bhasin said. “Market breadth will be narrow but that is typical of a bull market.”
Bhasin prefers consumption, auto, public-sector banking and NBFC stocks.
In today's session, seven out of 11 sector gauges compiled by National Stock Exchange ended higher led by the Nifty PSU Bank index's 3 percent surge. On the flipside, the Nifty Pharma index was top loser, down 0.6 percent.
Mid- and small-cap shares outperformed their larger peers as the Nifty Midcap 100 index rose 0.5 percent and the Nifty Smallcap 100 index advanced 0.9 percent.
MRF Declines After June Quarter Earnings
Shares of the Chennai-based tyre maker fell as much as 1.66 percent to Rs 75,379 after it reported June quarter earnings.
Key earnings highlights:
- Revenue up 8.1 percent at Rs 3,855.6 crore versus Rs 3,566.6 crore
- Net profit up 144.8 percent at Rs 260.7 crore versus Rs 106.5 crore
- Ebitda up 116.4 percent at Rs 595.3 crore versus Rs 275.1 crore
- Margin at 15.4 percent versus 7.7 percent
Reliance Communications Posts Longest Winning Streak In 12 years
Shares of the Anil Ambani-led company rose for an eighth session in a row posting its longest winning streak since June 2006.
In intraday deals, the stock jumped as much as 11.4 percent to Rs 20.50 and in the course of last eight trading sessions it has advanced 47 percent.
Europe Stocks Drop Amid Trade Salvos
European stocks declined on Thursday after a mostly positive session in Asia that saw Chinese equities shrug off the ongoing tariff to-and-fro between Beijing and Washington.
JP Associates, Sheela Foam Among Stocks Moving On Heavy Volumes
- Sudarshan Chemicals: The Pune-based chemical maker rose as much as 5.8 percent to Rs 510. Trading volume was 3.1 times its 20-day average.
- Schaeffler India: The Mumbai-based fabricated metal products maker rose as much as 2.6 percent to Rs 5,425. Trading volume was 6 times its 20-day average.
- Sheela Foam: The Ghaziabad-based mattress maker rose as much as 4.6 percent to Rs 1,536. Trading volume was 7.2 times its 20-day average.
- JP Associates: The Noida-based industrial conglomerate fell as much as 10 percent to Rs 13.50. Trading volume was 6.8 times its 20-day average.