Sensex, Nifty Log Best Day Since Exit Polls On Steps To Revive Growth
Closing Bell: Sensex Jumps Nearly 800 Points; Nifty Above 11,000
Indian equity benchmarks registered their biggest intraday gain in three months as government’s announcements last week boosted market sentiments.
Finance Minister Nirmala Sitharaman announcing a slew of measures on Friday, including the withdrawal the surcharge on foreign investors.
An economic revival is on cards in the second half of the current financial year, said Nandita Agarwal Parker, managing partner, Karma Capital Management. “"India's growth revival should stand out as doubts and mistrusts among investors, companies and SMEs and the feeling of lack of liquidity will get solved in the near term,” she said in am interview with BloombergQuint.
The S&P BSE Sensex rose 2.16 percent to close at 37,494.12 and the NSE Nifty 50 gained 2.11 percent to 11,057.85. The broader markets represented by the NSE Nifty 500 Index rose 1.98 percent.
The market breadth was tilted in favour of buyers. About 1,300 stocks advanced and 493 shares declined on National Stock Exchange. Ten of the 11 sectoral gauges compiled by NSE traded higher, led by the NSE Nifty Financial Index’s 4 percent advance. NSE Nifty Metal Index was the only loser, down 0.97 percent.
HUL Hits All-Time High
Shares of the country’s largest consumer goods maker rose 1.3 percent to a lifetime high of Rs 1,883.70 apiece.
The stock traded 58 times its estimated earnings per share for the coming year, according to Bloomberg data. Of the shares traded, 45 percent were at ask price and 35 were at bid price.
HDFC Jumps After Receiving Regulatory Approval For Munich Merger
Shares of the non-banking lender rose 4.2 percent intraday, the most in three months, to Rs 2,129.25 each.
Competition Commission of India approved acquisition of 51.2 percent stake in health insurance company Apollo Munich by HDFC and the subsequent merger of Apollo Munich into HDFC Ergo, according to the regulator’s official Twitter handle.
In June, HDFC agreed to acquire Apollo Hospitals Group's entire 50.8 percent stake in Apollo Munich Health for Rs 1,336 crore and also the 0.4 percent stake held by a few employees for Rs 10.84 crore.
The stock traded 11 percent below the Bloomberg consensus one-year target price.
Dilip Buildcon Gains After Plan To Sell Stake In Road Projects
Shares of the Bhopal-based infrastructure developer rose 6.2 percent to Rs 379 each.
The company’s board has approved divestment or partial stake sale in five road projects, according to an exchange filing.
The stock traded 62 percent below the Bloomberg consensus one-year target price.
Sensex, Nifty Near Day's High; Private Lenders Top Performers
Indian equity indices gained in the afternoon trade led by gains in Indiabulls Housing and HDFC.
Finance Minister Nirmala Sitharaman announcing a slew of measures on Friday, including the withdrawal the surcharge on foreign investors, fueled positive sentiments among the market participants.
“Measures only reinforce the confidence in markets and reflects that the government is keen to repair the economic damage done in the past quarters,” said Vikas Khemani, founder, Carnelian Capital Advisors, in an interview to BloombergQuint. “ Markets will consolidate for the next 2-3 months and bottom out.”
Markets will deliver phenomenal returns in the next 2-3 years as I see more upside potential from a risk-reward perspective. This argument is based on favourable macro conditions such as low commodity prices and falling interest rates.Vikas Khemani, Founder, Carnelian Capital Advisors
The S&P BSE Sensex rose 1.08 percent to 37,097.82 and the NSE Nifty 50 gained 0.96 percent to 10,933.65 as of 12:18 pm. The broader markets represented by the NSE Nifty 500 Index rose 0.90 percent.
The market breadth was tilted in favour of buyers. About 1,162 stocks advanced and 564 shares declined on National Stock Exchange. Nine of the 11 sectoral gauges compiled by NSE traded higher, led by the NSE Nifty PSU Index’s 2.30 percent advance. NSE Nifty Metal Index was the top loser, down 3.07 percent.
Delta Corp Surges Over 10%
Shares of the casino-chain operator rose as much as 10.1 percent, its biggest intraday jump in over three months, to Rs 163 each.
The trading volume was more than three times the20-day average for this time of the day, according to Bloomberg data. The stock traded at 19 times its estimated earnings per share.