Sensex, Nifty Close At Two-Week High
Closing Bell: Sensex, Nifty Close At Two-Week High
Indian equity indices extended gains for the second day in a row paced by gains in Tata Motors and Britannia Industries.
Finance Minister Nirmala Sitharaman announcing steps to support slowing economy last week continued to boost investor sentiments. Also, Reserve Bank of India’s transfer of Rs 1.76-lakh crore from its reserves to the government eased concerns on meeting fiscal deficit target.
The S&P BSE Sensex rose 0.39 percent to close at 37,641.27 and the NSE Nifty 50 rose 0.43 percent to 11,105.35. The broader markets represented by the NSE Nifty 500 Index advanced 0.64 percent.
“Two positive news (RBI's surplus transfer and FPI surcharge withdrawal) may have changed the market sentiment but it hasn't changed the ground reality," said Sameer Kalra, founder, Target Investing, advising participants to still remain cautious. An investor can use this bounce to offload stocks which one may not have the intention to hold onto anymore, he said in an interview to BloombergQuint.
The market breadth was tilted in favour of buyers. About 1,280 stocks advanced and 504 shares declined on National Stock Exchange. Eight of the eleven sectoral indices compiled by National Stock Exchange advanced, led by Nifty PSU Bank's 2.51 percent gain. Nifty IT Index was the top loser, down 1.35 percent.
Block Deal Alert: Bharti Airtel
Shares of the telecom company declined as much as 4.4 percent to Rs 344.75, its lowest level in two weeks.
Around 22.7 lakh shares changed hands in two block deals on Bombay Stock Exchange, according to Bloomberg data. Buyers and sellers were not known immediately.
The stock traded 12 percent below the Bloomberg consensus one-year target price.
Wadia Group Shares Rally
Shares of Mumbai-based conglomerate’s group companies rallied led by Bombay Burmah Trading’s 18.5 percent intraday jump.
- Bombay Dyeing’s shares rose close to 19 percent, the most in 18 months, to Rs 82.60 each.
- Bombay Burmah Trading rose 18.5 percent to Rs 936.90 each.
- Britannia Industries gained 7.5 percent to Rs 2,724.30.
- National Peroxide rose nearly 10 percent to Rs 1,587.75.
Berger Paints Hits Lifetime High
Shares of the Kolkata-based company rose 1.1 percent intraday to hit a lifetime high of Rs 369 each.
The relative strength index on the stock was above 70, indicating it may be overbought. The stock traded at 55 times its estimated earnings per share, Bloomberg data showed.
IT Stocks Decline As Rupee Appreciates
Shares of software exports were among the worst performers as the home currency gained 0.48 percent to Rs 71.67 against the U.S. dollar. Tech companies bill majority of their global and American clients in terms of U.S. dollars.
- Infosys declined as much as 2.7 percent to Rs 781.10 each.
- Mindtree fell 3.2 percent to Rs 683.75.
- TCS fell close to 2 percent to Rs 2,232.30.
- Tech Mahindra declined 1.7 percent to Rs 679.15.
Yes Bank Extends Gains For Third Day
Shares of the private lender rose as much as 3.9 percent to Rs 65.35 apiece.
The stock has declined 83 percent in the past 12 months compared to a 2.6 percent fall in the Sensex.
Meanwhile, talks between Yes Bank Ltd. and global private equity funds for a possible stake sale went cold after the funds did not get enough comfort from publicly available information on the bank.