Sensex rides global rally, surges 611 points; Nifty ends above 10,400

The Sensex closed 610.80 points or 1.83 per cent higher at 33,917.94, logging its biggest single-day gain since March 2017. The NSE Nifty rose 194.55 points or 1.9 per cent to end at  10,421.40. The broader Nifty touched an intra-day high of 10,433.65. 

The BSE benchmark Sensex today posted its biggest intra-day gain in nearly 12 months by surging over 650 points to 33,962.48 tracking a relief rally in global markets after better-than-expected US jobs report.  

“Friday's US employment data was about as perfect a set of figures as you can get from a policy maker's point of view. The increase in jobs was nothing short of amazing,” said Marshall Gittler, a strategist at ACLS Global, a currency brokerage. “In other words, it was a 'Goldilocks' report: not too hot, not too cold, just right.”

FMCG, IT, Teck, oil & gas, metal, capital goods, bankex and auto counters saw heavy buying activity ahead of key IIP and inflation numbers, to be released after market hours today.

Bharti Airtel, ITC, Tata Motors, Infosys, NTPC were among the top gainers, rising up to 3.59 per cent.

Firm trend in other Asian markets and higher opening in European bourses, following a good show by Wall Street on Friday, lifted investors’ mood in domestic markets.

Brokers said fresh buying by investors ahead of inflation data improved the market sentiment.

The government will announce inflation data based on consumer price index (CPI) and industrial production data after market hours today.

Sensex movers and shakers on Monday at close of markets

Sensex at 3.30 pm

World stocks surged to a two-week high on Monday after strong US jobs data at the end of last week helped take the edge off investors' concerns about the potential outbreak of trade war between the United States and other major economies. Read more

Hong Kong's benchmark stock index rose nearly 2 per cent to its highest closing level in five weeks on Monday, as fears of a global trade war, and faster US rate hikes eased. Read more

The domestic share indices continued to rally in late afternoon trade. At about 2.30 pm, the Sensex was up 465 points or 1.4 per cent at 33,772.60. Similarly, the NSE Nifty was up 142 points or 1.39 per cent at 10,369.05. On the Nifty 46 stocks advanced against 4 that declined. The four that declined are Coal India, Aurobindo Pharma, SBI and Bosch. 

The top Nifty gainers included: Bharti Airtel (+4.17%), ITC (+4.01%), Vedanta (+2.91%), HCL Tech (+2.83%) and Bharti Infratel (+2.63%).

Sensex movers and shakers at 2.30 pm

Sensex 30 at 2.30 pm

Among the sectoral indices, telecom, IT, Teck, metal, oil and gas and auto led the gainers with up to 2.2 per cent increase.

Shares were trading over 1 per cent higher in the afternoon trade tracking a rally in global markets after a US jobs report assuaged fears around inflation and faster rate hikes.

The government will release inflation and IIP data post market hours. Retail inflation is expected to ease to a four-month low in February on softening prices for vegetables and other perishable foods, but will probably stay above the central bank's target, according to a Reuters poll.

At about 1.15 pm, the Sensex was trading 1.11 per cent or 369.49 points higher at 33,676.33 while the NSE Nifty was up 120.95 points or 1.18 per cent at 10,347.80.

Sensex at 1.20 pm

“There is a little bit of positivity after Asian markets opened on a positive footing on stronger U.S. markets,” said Anand James, chief market strategist at Geojit Financial Services. ”Another point of view is that it (market) bounced off its 200-day moving average, which is attracting some bargain buying at the bottom. The first test of this critical level was seen last week. Also, markets are looking at firmer inflation numbers, especially in the backdrop of other central banks also taking a tighter stance on monetary policy. So, upside looks to be little restrained ahead of key macro numbers,” he said.

The S&P Nifty index, which has been on a downswing since the beginning of February, found support at its 200-day simple moving average last week. The Relative Strength Index (RSI) has bounced back from an oversold zone in the past week, which suggests a reversal in trend.

Nifty gainers

Nifty losers

The Nifty 50 futures contract opened with a wide gap-up of 115-points. However, the contract is not receiving strong follow-through buying to keep the momentum going. The index futures is stuck in a narrow range between 10,295 and 10,345. Read more

The Sensex and the Nifty continued to trade higher in the noon session. At about 12.15 pm, the 30-share index was up 306.81 points or 0.92 per cent at 33,613.95. Similarly, the broad-based Nifty was up 94.65 points or 0.93 per cent at 10,321.50. 

Sensex at 12.15 pm

Gains in ITC, Infosys, HDFC, HDFC Bank, Reliance and TCS pushed up Sensex.  Among the BSE sectoral indices, IT, TECk and FMCG were the top gainers (up to +1.5%).  Realty, power and healthcare indices were trading in the red.

BSE Healthcare index at about 12.15 pm

BSE Power index at about 12.15 pm

BSE Realty index at about 12.15 pm

Cigarette makers rally 3% Shares of cigarette makers jumped on Monday after GST Council, at its meet on Saturday, left cigarette tax rate unchanged. ITC shares moved up as much as 3.4 per cent to Rs 268, in its biggest intra-day percentage gain since February 2. At about 11.50 am, the stock was quoting at Rs 266.70, up Rs 7.30 or 2.81 per cent.

Godfrey Phillips India Ltd too rose as much as 3 per cent to Rs 828.60 in morning trade. At about 11.50 am, the stock was up 2.26 per cent or Rs 18.25 at Rs 824.30.

Up to Friday's close, ITC's stock had slipped 2.2 per cent in the past 12 months, while Godfrey Phillips India's stock fell 20 per cent.

Cigarettes_tobacco_stocks

Wind turbine maker Suzlon today said it has bagged an order for development of 75 (MW) wind energy project from an independent power producer through Maharashtra State Electricity Distribution Company Ltd (MSEDCL) bid. Read more

JSW Steel today said it is contemplating raising funds through issue of dollar-denominated senior notes. “The company is contemplating issuing of debt instruments in the form of US dollar denominated senior notes, subject to market conditions,” JSW Steel said in a BSE filing. Read more

Eicher shuts down Polaris joint venture

Eicher Motors Ltd said on Monday it is shutting down its joint venture with the US' Polaris Industries Inc effective immediately, after it failed to sustain its initial success. “The initial interest could not be sustained and the subsequent sales performance was significantly slower than the company's expectations,” Eicher Motors, maker of the Royal Enfield motorcycles, said in a statement.  Eicher shares were up 0.85 per cent or Rs 238.05 at 28,113.05 on the BSE at about 11.35 am.

Larsen & Toubro today said its construction arm has won orders worth Rs 2,597 crore across business segments. L&T, in a BSE filing, said its transportation infrastructure business has secured an order worth Rs 1,047 crore. Read more

Lumax Industries: Lighten your share

Like many other small-cap stocks that have had a dream run in the booming market conditions of the last two to three years, Lumax Industries too has had its time under the sun. From our ‘buy’ recommendation at ₹452 in January 2016, the stock has zoomed five-fold to touch ₹2,240 at close last Friday. While the prospects appear bright for this player in the automotive lighting space, the stock has become pricey. It currently trades at about 38 times its trailing 12-month earnings. This valuation multiple is much higher than peers such as Fiem Industries (31 times) and other similar sized auto component players such as Gabriel India (23 times) and Jamna Auto Industries (27 times). Read more

  

 

 

Synergy benefits for Tata Steel from Bhushan acquisition

The news of Tata Steel’s winning bid for Bhushan Steel sent the shares of the latter soaring by over 12 per cent on Thursday. However, the proposed acquisition seems to have been factored in the stock price of Tata Steel already, as seen from the relatively muted reaction of its stock prices. Read more

Index outlook

Only a strong decline below the crucial support level of 31,000 will change the medium-term trend to negative. Next key supports are at 30,600 and 30,200. Key resistances above 34,600 are at 35,200 and 36,000. Read more

Gold prices were steady on Monday as the US dollar inched lower, with the latest US jobs report easing fears of inflation and faster US rate hikes. Read more

Money market traders stuck to bets that the US Federal Reserve would raise interest rates three times this year, with only around a one-in-four chance seen for a fourth rate hike in 2018.

Sensex movers and shakers at 10.30 am

The domestic share indices continued to rally in morning trade on on fresh capital inflows by foreign funds ahead of key IIP and inflation data to be released after market hours today.  The 30-share Sensex rallied  350.63 points, or 1.05 per cent, to 33,657.77 at about 10.15 am. The index had lost 44.43 points in the previous session on Friday.

All the sectoral indices, led by IT, Teck, oil & gas, FMCG and realty sectors, were trading in the green with gains up to 1.24 per cent.

The broader NSE Nifty rose 106.20 points, or 1.04 per cent, to 10,333.05.

Major gainers were ITC, Tata Steel, Sun Pharma, Infosys, Wipro, Adani Ports, Bharti Airtel, HDFC, RIL, IndusInd Bank, M&M and L&T, rising up to 2.74. Meanwhile, SBI dropped nearly 1 per cent to Rs 250.80.

Sensex 30 at about 10.15 am.

Brokers said fresh buying by investors and foreign funds amid a firm trend in other Asian bourses improved market sentiment.

The rupee strengthened by 23 paise to 64.94 against the US dollar at the interbank forex market today on fresh selling of the greenback by exporters and banks amid foreign capital inflows. Read more

Dollar's weakness against a basket of currencies, strong gains in equities supported the rupee.

Indraprastha Gas: Piped up

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Go global with your money

What’s the investment scene like, on the domestic front? Not too inviting at the moment. For one, Indian markets are headed for a phase of extended volatility, going by their expensive valuations. The upcoming Central and state elections and their likely political outcomes are adding to the uncertainty. Moreover, the debilitating effects of the banking fraud on the economy haven’t played out fully. Read more

MSCI's broadest index of Asia-Pacific shares outside Japan climbed 1.1 per cent, for a third session of gains. South Korea rose 1 per cent while Australia's main index added 0.7 per cent, boosting by mining shares on news that Australia could be exempt from new US trade tariffs on steel and aluminium imports. Read more

A relief rally swept across Asian share markets on Monday. File Photo

The domestic share indices rallied on Monday tracking firm Asian markets.

The Sensex opened 314.98 higher at 33,468.16 against Friday's close of 33,307.14. Similarly, the NSE Nifty opened 74.75 points higher at 10,301.60 against 10,226.85. 

A relief rally swept across Asian share markets on Monday after the latest US jobs report managed to impress with its strength while also easing fears of inflation and faster rate hikes, a neat feat that whetted risk appetites globally.

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