Sensex, Nifty Recovery Tapers Off As Economy Awaits Stimulus
Closing Bell: Sensex, Nifty Close Marginally Higher
Indian equity benchmarks closed with marginal gains as businesses awaited measures from the government to spur growth.
The S&P BSE Sensex rose as much as 0.14 percent to 37,402.49 and the NSE Nifty 50 gained 0.10 percent to 11,153.90. The broader markets represented by the NSE Nifty 500 Index closed 0.10 percent higher. The benchmarks pared gains in the final hour sell-off, led by losses in auto stocks.
The markets were fueled with positive sentiment over the past few days on account of Finance Minister Nirmala Sitharaman meeting various industry leaders, said Sharmila Joshi, an independent investment advisor, in a conversation with BloombergQuint. However, these gains may taper off if the talks don’t materialise, Joshi said.
The market breadth was tilted in favour of buyers. Around 963 stocks had advanced and 835 stocks declined.
However, six of the 11 sectoral gauges declined, led by 0.83 percent fall in NSE Nifty PSU Index. NSE Nifty Pharma Index was the top sectoral gainer, up 0.74 percent.
Godfrey Phillips Gains Over 57% In Last Seven Sessions
Shares of the cigarette maker has advanced over 57.7 percent in the last seven sessions— its biggest winning streak since March.
The shares rose as much as 9.5 percent to Rs 1.088.70 in today’s trade. "The volume growth could be in the range of 8-9 percent for financial year 2020," said KK Modi, President, Godfrey Phillips, in an interview to BloombergQuint, adding that 17 percent seen in June quarter could be a one-off uptick.
The trading volume was more than 10 times the 20-day average for this time of the day, Bloomberg data showed.
DHFL Surges After Report Of Banks Picking Majority Stake
Shares of the cash-strapped lender rose 14.2 percent to Rs 52.45 each.
Banks have agreed on a resolution plan that includes conversion of debt to equity and issuance of non-convertible debentures, according to an Economic Times report citing unidentified sources.
The stock has fallen 92 percent in the past 12 months compared to 1 percent fall in the Sensex.
F&O Check: Nifty 11,100 Call Option Jumps 37%
Nifty’s 11,100 call option contract was among the most active Nifty option contracts on National Stock Exchange.
Premium on the weekly contract which is set to expire on Thursday jumped 37.15 percent to Rs 85.65. Over 49,000 shares were added to the open interest which stood at over 13.99 lakh shares.
Sensex, Nifty At Day's High; Pharma Stocks Gain
Indian equity benchmarks traded at intraday highs, paced by gains in drugmakers.
The S&P BSE Sensex rose as much as 0.89 percent to 37,687.05 and the NSE Nifty 50 rose as much as 0.81 percent to 11,137.80. The broader markets represented by the NSE Nifty 500 Index rose as much as 0.77 percent.
“Markets are showing an uptick on account of better global cues and optimism over industry body leaders meeting Finance Minister Nirmala Sitharaman since last week,” said Sharmila Joshi, an independent investment advisor, in a conversation with BloombergQuint. However, the gains may taper off if the talks don’t materialise, Joshi said.
Joshi suggested a staggered buying approach in consumer staples and IT stocks in the current macro-economic scenario. “Hindustan Unilever Limited, ITC, Dabur and HCL Technologies are my preferred bets.”
The market breadth was tilted in favour of buyers. Ten of the 11 sectoral gauges advanced, led by 1.63 percent gain in NSE Nifty Pharma Index. NSE Nifty PSU Index was the only sectoral loser, down 0.62 percent.
Pennar Industries Surges After Winning Rs 538-Crore Worth Orders
Shares of the industrial components maker surged as much as 9.6 percent, its biggest intraday jump in five months, to Rs 28.65 each.
The Hyderabad-based company said received multiple orders aggregating Rs 538 crore across its business verticals, according to an exchange filing. This included railway orders to the tune of Rs 66 crore, the filing said.
The stock traded 6.1 times its estimated earnings per share for the current year, Bloomberg data showed.