Post Session: Quick Review

The May series Futures and Options contract settlement turned out to be a encouraging event for the Indian frontline indices which showcased a phenomenal performance, with key gauges surpassing their crucial 26,300 (Sensex) and 8,050 (Nifty) bastions. Extending their jubilation for third straight day, bulls tightened grip on Dalal Street after upbeat March-quarter results, raising hopes about the domestic economy. Sentiments remained up-beat since start as key bourses opened with huge gap on upside and there appeared not even an iota of profit booking in the session as the benchmarks managed to fervently gain from strength to strength as investors continued hunt for fundamentally strong stocks.

Domestic sentiment was buoyed as oil advanced to $50 a barrel for the first time this year as US industry data showed a decline in stockpile. The G7 summit in Japan to take stock of the global economy also infused a sense of confidence. Appreciation in Indian rupee aided sentiments. The rupee firmed up by 14 paise to 67.18 against the dollar at the time of equity markets closing on increased selling of the US currency by exporters and banks.

Firm global cues too supported sentiments with European counters making firm start and Asian markets ending mostly in green as gains in oil prices outweighed concerns about a slowdown in Chinese growth and prospects of higher interest rates in the U.S. Closer home, better-than-expected Q4 earnings from GAIL, L&T and Bajaj Auto too helped to uplift sentiments. GAIL posted a rise of 50.76% in its net profit at Rs 769.99 crore for the quarter ended March 31, 2016, while Larsen & Toubro posted a rise of 23.22% in its net profit at Rs 2539.14 crore as compared to Rs 2060.65 crore for the same quarter in the previous year. Moreover, Bajaj Auto reported a 29% rise in its March-quarter net profit.

Buying in capital goods counter mainly supported markets by surging over eight percent, as government approved the country’s first ‘National Capital Goods Policy’, which seeks to treble the production of capital goods in 10 years to Rs 7,50,000 crore and raise employment in the sector almost four times to 30 million. Banking stocks too remained on buyers’ radar after global credit rating agency Moody's Investors Service on Thursday said India's bankruptcy code boosts creditors bargaining power against big borrowers. Shares of oil exploration and production companies too edged higher as crude oil prices gained.

The NSE’s 50-share broadly followed index -- Nifty -- rose by over one hundred and thirty points to end above the psychological 8,050 support level, while Bombay Stock Exchange’s Sensitive Index -- Sensex -- jumped by around four hundred and ninety points to finish above the psychological 26,300 mark. Broader markets too traded with traction and ended the session with a gain of around a percent.

The market breadth remained in favor of advances, as there were 1,399 shares on the gaining side against 1,151 shares on the losing side while 197 shares remain unchanged. (Provisional)

The BSE Sensex ended at 26366.68, up by 485.51 points or 1.88% after trading in a range of 25941.51 and 26398.94. There were 22 stocks advancing against 7 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 1.00%, while Small cap index up by 0.86%. (Provisional)

The top gaining sectoral indices on the BSE were Capital Goods up by 8.78%, Industrials up by 3.97%, Bankex up by 2.22%, Finance up by 1.89% and Realty up by 1.82%, while there were no losers on the BSE sectoral front. (Provisional)

The top gainers on the Sensex were Larsen & Toubro up by 14.04%, SBI up by 4.91%, BHEL up by 4.73%, Axis Bank up by 3.35% and ONGC up by 3.09%. On the flip side, Sun Pharma down by 0.61%, Cipla down by 0.57%, GAIL India down by 0.31%, Reliance Industries down by 0.27% and NTPC down by 0.25% were the top losers. (Provisional)

Meanwhile, the Cabinet Committee on Economic Affairs (CCEA) at its meeting chaired by Prime Minister Narendra Modi has cleared Railway projects worth Rs 10,736 crore for improving infrastructure. The projects, including three for doubling of existing rail lines and two for laying a third rail line on busy routes are in various states, including poll bound Uttar Pradesh and Gujarat.

In Gujarat the CCEA has given approval for doubling of Surendranagar-Rajkot project at an estimated cost of Rs 1,002.39 crore with expected completion cost of Rs 1,137.17 crore with 5 per cent escalation per annum. The length of the railway line will be 116.17 kms. The completion period of the project will be four years. Railway Minister Suresh Prabhu has said that the doubling of this line will greatly ease the ever increasing freight traffic between Okha-Rajkot, Porbandar-Kanalus, Veraval-Rajkot and Maliya Maiyana - Navalakhi-Dahinsara-Wankaner sections.

In UP approval was given for the doubling of Roza-Sitapur Cantt-Burhwal broad gauge single line project at an estimated cost of Rs 1,295.42 crore with expected completion cost of Rs 1,486.46 crore with 5 per cent escalation per annum. The length of the railway line will be 180.77 kms and the completion period of the project will be five years.

CCEA also gave its nod for doubling of Pune-Miraj-Londa railway line in Maharashtra at an estimated cost of Rs 3,627.47 crore and expected completion cost of Rs 4,246.84 crore in five years keeping in view the 5 per cent escalation per annum.The length of the railway line will be 467 kms. Approval for the Vizianagaram and Titlagarh third line project too was given at an estimated cost of Rs 2,335.68 crore. The length of the railway line will be 264.6 kms and the completion period of the project will be five years.

The CNX Nifty ended at 8069.65, up by 134.75 points or 1.70% after trading in a range of 7948.50 and 8083.00. There were 37 stocks advancing against 14 stocks declining on the index. (Provisional)

The top gainers on Nifty were Larsen & Toubro up by 14.13%, SBI up by 5.17%, BHEL up by 4.94%, Idea Cellular up by 3.88% and Axis Bank up by 3.36%. On the flip side, Bharti Infratel down by 1.19%, HCL Tech down by 1.13%, Sun Pharma down by 0.78%, Eicher Motors down by 0.74% and Reliance Industries down by 0.46% were the top losers. (Provisional)

European markets were trading in green; UK’s FTSE 100 rose 5.23 points or 0.08% to 6,268.08, France’s CAC increased 7.47 points or 0.17% to 4,489.11 and Germany’s DAX was up by 37.16 points or 0.36% to 10,242.37.

Asian equity markets ended mostly higher on Thursday as gains in oil prices and positive cues from overseas markets outweighed concerns about a slowdown in Chinese growth and prospects of higher interest rates in the US. The yen saw a sudden spike on the eve of G7 summit talks, with leaders of the world's seven major industrial democracies expected to promote monetary, fiscal and structural policies to spur growth in their communique, when the summit ends on Friday. Also, Fed Chair Janet Yellen speaks Friday on the economy at Harvard and her comments could provide further clues about whether the central bank would raise interest rates in June. Chinese shares closed higher to snap a two-day losing streak after falling to 2-1/2 month lows in early trade on growing worries that the economy is losing momentum. The combined profits of China's non-financial state-owned enterprises fell an annual 8.4 percent in the first four months of this year, highlighting the policy changes facing Beijing as it goes through a full-scale economic transformation. Japanese shares ended flat as an early rally fizzled out amid the yen's strength.