Sensex rallies 130 points ahead of RBI monetary policy, Nifty settles above 7,750; Telecom stocks surge
Domestic benchmark indices BSE Sensex and NSE Nifty ended in green on Monday ahead of the Reserve Bank of India (RBI) monetary policy review scheduled on April 5 amid firm global cues. Sensex closed 130.01 points up at 25,399.65, while Nifty settled 45.75 points up at 7,758.80.
In the 50-share index Idea Cellular, Tata Power, Bharti Airtel, Mahindra and Mahindra and Aurobindo Pharma gained between 3.40 per cent and 6.30 per cent. On the other hand, Ambuja Cement, ITC, UltraTech Cement, HDFC and Maruti Suzuki slid between between 1.15 per cent and 1.62 per cent.
Sectorwise, the BSE Telecom index surged the most — 2.77 per cent, followed by BSE TECK (up 2.06 per cent) and BSE IT index (up 1.95 per cent). Rest all other sectoral indices also ended the day in green.
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Telecom stocks remained on buyers’ radar on report, which claimed that the government has cut spectrum usage charges from 5 per cent to 3 per cent. Telecom companies have to pay two types of charges – a one-time price for bagging the spectrum rights and a recurrent spectrum usage charge, which was fixed at 5 per cent of adjusted gross revenues of telecom companies. Idea Cellular, Bharti Airtel and Reliance Communication surged by 6 per cent, 3.76 per cent and 1.89 per cent respectively.
Sentiments remained upbeat with the Nikkei purchasing managers’ index (PMI) survey showing that India’s manufacturing at an eight month high of 52.4 after the 51.1 points reading in February. This is a third consecutive monthly improvement in business conditions across the sector. Some support also came with the Climate Forecast System (CFS) of the Indian Institute of Tropical Meteorology (IITM) predicting mostly a normal and sometimes heavy rainfall across the country barring some parts. Traders also got some encouragement with the report that after having revised upwards its target for indirect tax collections by 8.6 per cent for 2015-16, the government has crossed the revised estimate to collect Rs 7.09 lakh crore as per provisional estimates.
Overall market breadth remained in the favour off gainers in BSE, as there were 1,650 shares on the gaining side against 963 shares on the losing side while 133 shares remain unchanged.
Recovery in European markets too aided sentiments. CAC, DAX and FTSE after a negative start have made a smart recovery and were trading in green terrain with around a percent gain. Asian markets ended mostly in green after solid US payroll data underpinned investor risk sentiment while dovish comments from Federal Reserve Chair Janet Yellen the previous week kept the US dollar in check.
Markets through the day
3.30 pm: Sensex closed 130.01 points up at 25,399.65, while Nifty settled 45.75 points up at 7,758.80.
3.06 pm: Sensex was trading 127 points up at 25397. Nifty was up 42.60 points at 7,755.
2.38 pm: Yes Bank, the country’s fifth largest private sector bank, has raised Rs 545 crore of bonds on a private placement basis to meet its Basel III capital requirements. The issue was closed on March 31, 2016. The issue was rated ‘AA+ hyb’ by ICRA and ‘AA+’ by CARE. YES Bank was trading 1.55 per cent up at Rs 868.95.
2.01 pm: Equitas Holdings is going to hit the Dalal Street on Tuesday (April 5) to raise Rs 2,200-crore through an initial public offer (IPO), making it the first issue of the financial year 2016-17. The company has fixed the price band at Rs 109-110 per share for the issue which will close on April 7. The 30-share index was trading 25.97 points up at 25,295.
1.33 pm: Steel Strips Wheels (SSWL) has reported 10 per cent growth in its total wheel rim sales to 12.25 lakh as compared to 11.16 lakh in March 2015. In terms of value, the company has achieved gross turnover of Rs 127.48 crore in March 2016 as compared to Rs 117.70 crore in March 2015, recording a growth of 8 per cent and achieved a net turnover of Rs 115.08 crore in March 2016 as against Rs 105.8 crore in March 2015, recorded a growth of 9 per cent. The company’s export surged 46 per cent YoY in March 2016. Shares of SSWL were trading over 2 per cent up in the afternoon trade. Sensex was up 4.78 points up at 25,274.
1.15 pm: SML Isuzu shares were trading in red after it reported 6.55 per cent fall in March sales. The company has sold 1,656 vehicles during March, 2016 against 1,772 vehicles sold in March, 2015. For the year ended March, 2016, the company sold 12,700 units as against 11,759 units sold in the previous year, up 8 per cent. Shares of SML Isuzu were trading 0.21 per cent down at 776.35. Sensex was up 4.25 points at 25,273. Nifty was trading 10.15 points up at 7,723.
1 pm: European shares fell to near a one-month low, with telecom shares slumping after talks between Orange and Bouygues on a deal to create a dominant French telecoms operator collapsed. The STOXX Europe 600 Telecommunications index fell 2 per cent, the top sectoral decliner, following the failure on Friday of the proposed 10 billion euro ($11.4 billion) cash-and-share deal. Sensex was trading 6.35 points down at 25,263.29, while NSE Nifty was up 8.80 points at 7,721.85.
12.45 am: MBL Infrastructures shares were trading 2.66 per cent up at Rs 158.00 after it bagged road development projects worth Rs 2,126 crore from NHAI in Uttarakhand and Uttar Pradesh. Sensex was trading 39.14 points down at 25,230.50, while NSE Nifty was trading 6.90 points down at 7,706.15.
11.52 am: Shares of Adani Enterprises advanced as much as 7.8 per cent after the company’s $21.7 billion coal mine project in Australia won three mining leases. Sensex was trading 9.78 points up at 25279. Nifty was up 9.05 points at 7,722.
11.20 am: Meanwhile, India’s manufacturing growth rose to an eight-month high in March driven by strong rise in business orders, leading firms to scale up output, while the build-up in inflationary pressures may result in RBI hitting the pause button, says a Nikkei survey.
11.16 am: Coal India’s (CIL) Jharkhand arm Central Coalfields (CCL) posted a record production of 61.35 million tonnes (MT) in 2015-16, which was the second consecutive year of double digit growth for the company. The growth in output was about 10.25 per cent and efforts are on to maintain double digit growth in future. Shares of Coal India were trading 0.85 per cent down at 285.35. Sensex was up 54.74 points at 25324. Nifty was trading 21.10 points up at 7,734.
11.13 am: Sensex was trading 65.27 points at 25,334.91, while Nifty was trading 21.05 points at 7,734.10.
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10.13 am: Sensex was trading 97.05 points up at 25366.69. Brokers said apart from positive cues from global market, widening of positions by investors and funds on expectations that Reserve Bank might lower key interest rates at its first bi-monthly monetary policy review for 2016-17 tomorrow, influenced sentiment.
9.41 am: Rupee depreciated by 10 paise to 66.36 against the US currency in early trade on Monday at the Interbank Foreign Exchange due to increased demand for the dollar from importers. Sensex was trading 76.39 points up at 25,346.
9.17 am: State-run MOIL has hiked prices of various grades of manganese ore by up to 50 per cent for April-June quarter. The prices of all grades of fines are increased by 10 per cent. The company revises prices of manganese ore on a quarterly basis. Prices of chemical grades ore have been increased by 35 per cent. There is no change in the existing price of Electrolytic Manganese Dioxide (EMD). Shares of MOIL were trading over 8 per cent up in the early trade.
9.16 am: Sensex was trading 123.39 points up at 25,393.03. Nifty was up 39.95 points, or 0.52 per cent, at 7,753.
9.15 am: The BSE Sensex opened 64.35 points, or 0.25 per cent, up at 25333.98, while NSE Nifty index opened 20.10 points, or 0.26 per cent, up at 7,733.15.
8.48 am: The BSE Sensex and NSE Nifty are likely to open in green on Monday tracking Nifty futures on the Singapore Stock Exchange (SGX Nifty) and firm global cues.
At 8.43 am (IST), SGX Nift was up 24.50 points, or 0.32 per cent, at 7,770.
The US markets bounced back and surged in last session, recovering from their early weakness due to crude decline; lifting Dow to its best closing level in almost four months, following the release of the Labor Department’s closely watched monthly jobs report.
The Asian markets have made mostly a positive start on Monday with traders in the region continuing to hope that the Federal Reserve will proceed cautiously on raising interest rates, despite some good economic data, though some of the important markets are closed for today.
The new fiscal commenced on a cautious note on Friday with the market benchmark Sensex closing 72 points lower at 25,269.64 as depressed stocks in Asia and Europe forced investors to book profit while selling in heavyweights energy and IT stocks also added to the fall.
The combined market valuation of top-seven companies dipped by Rs 32,188.32 crore last week, with HDFC and Sun Pharma taking the steepest hit.
(With agency inputs)