Sensex, Nifty Halt Four-Day Losses; Jet Airways Slumps 40%
Closing Bell: Sensex, Nifty Close Higher Driven By Metal Stocks
Indian equity benchmarks snapped their four-day fall and ended higher, paced by gains in metal stocks. Cash strapped airline Jet Airways slumped 40.8 percent— its worst intraday after lenders took the company to National Company Law Tribunal to cover their dues.
The S&P BSE Sensex closed 0.22 percent higher at 39,046.30 and the NSE Nifty 50 ended at 11,691.50, up 0.17 percent. The broader market index represented by the NSE Nifty 500 Index closed marginally higher at 0.1 percent.
"Easing macro global situation in anticipation of Trump’s re-election and the rupee strengthening thereof has resulted in investors settling for defensive stocks like metals and IT services," said Avinash Gorakshakar, head of research, Joindre Capital Services to BloombergQuint. He said the markets may move up further after Budget or submission of Bimal Jalan committee report on RBI's excess reserves.
The market breadth, however, was tilted in favour of sellers. About 1,092 stocks declined and 688 shares advanced on National Stock Exchange.
Seven out of 11 sectoral gauges compiled by NSE advanced, led by the NSE Nifty IT Index’s 0.58 percent gain. On the flipside, the NSE Nifty Pharma Index was the top sectoral loser, down 0.73 percent.
VA Tech Wabag Pares Losses After Securing Rs 1,477 Crore Deal
The shares of the water technology company pared losses to trade at 3 percent lower at Rs 305 per share.
The company secured an order worth Rs 1,477 crore from Uttar Pradesh government as a part of Clean Ganga mission, according to an exchange notification. The contract is for operation and maintenance of sewage treatment plants in Agra and Ghaziabad for 10 years, the filing said.
The stock declined 27 percent in the past 12 months compared with 9.4 percent to Sensex.
European Stocks Gain As Draghi Says Rate Cut Still Part Of Arsenal
European equities rose, reversing earlier losses, after European Central Bank President Mario Draghi said interest rate cuts remain “part of our tools”.
Indian Bond Yields Fall To 20-Month Low
Indian benchmark bond yields drop to 20-month low as investors step up purchases amid lower global growth worries and changed RBI stance.
The yield on 10-year bonds fell 10 basis to 6.81 percent Tuesday after touching 6.8 percent, the lowest for the benchmark botes since October 2017.
Tech Mahindra Snaps Five-Day Decline
Shares of the IT services provider snapped a five-day rose as much as 1.1 percent to Rs 744 apiece.
To buy Canada’s Objectwise Consulting for CAD 2.75 million (about Rs 14.33 crore), according to an exchange filing. The all-cash transaction is expected to close by 31 July, the filing said.
The stock traded at 14 times its estimated earnings per share for the coming year, according to Bloomberg data. Thirty six of the 48 analysts tracked by Bloomberg had a ‘Buy’ rating on the stock. Seven analysts recommended ‘Hold’ while five had a ‘Sell’ rating.
Markets Check: Sensex, Nifty Hover Near Day's High; Jet Airways Slumps Over 50%
The S&P BSE Sensex advanced nearly 0.46 percent to 39,141 and the NSE Nifty 50 traded at 11,721, up 0.42 percent, hovering near their intraday highs.
Also, oil retailers were among the top performers as Brent crude prices fell 0.7 percent to $60.51 per barrel. Also, Jet Airways slumped around 53 percent as lenders plan take the company to NCLT to seek resolution under insolvency law.