Market logs 2nd gain in 10 sessions; Sensex soars 295 pts
Mumbai: Domestic equities managed their second gain in last ten sessions and recovered from two back- to-back weekly declines today, with Sensex surging nearly 295 points and Nifty 85 points as investors turned towards recent battered stocks for value-buying amid positive global cues.
Besides, strong corporate earnings and expectations of some moderation in retail inflation numbers - to be released after market hours today - also added to sentiment revival.
Investors heavily bought into recently battered power, realty, capital goods and banking stocks amid continued buying by domestic funds and retail investors.
In the Sensex pack, shares of Tata Steel emerged best performer by climbing 4.22 per cent after the company reported 5-fold jump in third quarter net profit. Recently over-sold healthcare counters rebounded, even as public sector State Bank of India tumbled after registering a surprise quarterly loss.
"Market reversed from previous day's losses owing to positive global cues and expectation of marginal decline in January CPI inflation today.
Mid and small cap outperformed the benchmark indices as investors start accumulating the over sold stocks. The economy is forecasted to improve in the long-term with strong earnings growth...," Vinod Nair, Head of Research, Geojit Financial Services Ltd, said. A firming trend on Asian and European bourses following a good show by Wall Street on Friday too lifted mood of investors in domestic markets.
Oil prices were up after sinking on Friday for a sixth straight day and the rupee also appeared to be on the recovery path, adding to revived sentiments. After opening on a strong footing, the Sensex advanced to hit a fresh high of 34,351.34 on the back of continued buying by domestic funds and retail investors but later declined to 34,115.12 on profit booking. It finally settled 294.71 points, or 0.87 per cent, higher at 34,300.47.
The index had lost 407.40 points, or 1.18 per cent, to settle at a one-month low of 34,005.76 on Friday, weighed by weak global stocks. The broader Nifty, after touching a high (intra-day) of 10,555.50 points, finished at 10,539.75, up 84.80 points, or 0.81 per cent.
Brokers said sustained buying by domestic institutional investors ahead of inflation data improved the market sentiment. Domestic institutional investors bought shares worth a net Rs 588.42 crore while foreign portfolio investors sold shares worth a net Rs 1,351.70 crore on Friday, provisional data showed.
Tata Steel on February 9 had reported a five-fold rise in consolidated net profit at Rs 1,135.92 crore for the third quarter ended December 31. It had posted consolidated net profit of Rs 231.90 crore in the same quarter last fiscal.
Tata Communications also ended 1.71 per cent higher after the company posted a net profit of Rs 10.12 crore for the December quarter, a fraction of what it earned in the year-ago period as some of its operations were sold and discontinued.
Tata Motors closed higher by 0.88 per cent after the company on Friday had reported a 20 per cent increase in global sales, including that of Jaguar Land Rover at 1,14,797 units. Larsen and Toubro rose by 1.63 per cent after it announced a Rs 2,200 crore order win by its wholly-owned arm L&T Hydrocarbon Engineering from Abu Dhabi-based Al Dhafra Petroleum Operations Company Limited.
Other prominent gainers included Yes Bank, Power Grid, IndusInd Bank, Heromotocorp, RIL, HDFC LTD, Maruti Suzuki, ONGC, HDFC Bank, Wipro, Bajaj Auto, Asian Paint and Sun Pharma, rising by up to 2.89 per cent. SBI, however, dropped 2.67 per cent following poor quarterly results.
The PSU lender on Friday posted a net loss of Rs 1,886.57 crore after a massive under-reporting of dud assets in the past fiscal and reverses in treasury operations. Sector-wise, the upmove was driven by power (up 1.87 per cent), realty (1.73 per cent), capital goods (1.65 per cent), infrastructure (1.47 per cent), healthcare (1.18 per cent), auto (1.06 per cent), metal (1.01 per cent), banking (0.68 per cent) and oil & gas (0.62 per cent).
While, IT and teck ended in the negative zone, falling up to 0.43 per cent. The BSE small-cap index higher by 1.60 per cent and mid- cap index ended up 1.31 per cent. Global investors, However, were still fretting about the risks from looming US inflation data after last week's sharp sell-off. Trading was brisk across global markets.
Shanghai Composite gained 0.78 per cent, Singapore up 0.28 per cent and Malaysia rose by 0.57 per cent. However, Hong Kong's Hang Seng flate 0.16 per cent. Japanese markets are closed today in observance of a public holiday.
European markets were higher in early trade, with Frankfurt's DAX rising 1.95 per cent and Paris CAC 40 up 1.59 per cent. London's FTSE too rose 1.26 per cent. The stock markets will remain closed tomorrow, 13 February 2018, on account of 'Mahashivratri'.
China began an anti-dumping investigation on Monday into stainless steel imports worth $1.3 billion, including from a privately owned Chinese mill with operations offshore, after complaints of damage to the local industry.
State-owned PNB today said it has received Rs 2,816 crore as capital infusion from the government via preferential allotment of equity shares.
The Border Roads Organisation has spent more than Rs 1,900 crore on construction and improvement of infrastructure on the north-western and north-eastern borders of India, the government said.
The population of tigers is on the rise, the government said today quoting preliminary census data.
Barely two weeks since launch, BSNL's internet telephony service 'Wings' has received over 4,000 bookings for the new offering that will allow users to dial any phone number in India through a mobile app, starting this week, its Chairman said today.
The station, which was named after Lord Elphinstone, the Governor of Bombay Presidency from 1853 to 1860, has now been renamed in honour of a local deity.
Lavasa -an ultimate getaway, a city that would offer the charms of European locales, with five star comforts in a scenic part of Maharashtra has now become an abandoned town.
A second chargesheet by the ED has confirmed the trail of illegal cash Mallya transferred to his accounts across global tax havens.
Delayed payment by GMR-led DIAL, the Delhi airport operator, to the CISF guards could eventually lead to passengers paying more to fly out of the Indian Capital.
The West Bengal Police has claimed to have busted a Rs 100 crore plus job racket in the Indian Railways following a crucial arrest in the Indian Capital.