Kicking off a new week on a bullish note, Indian equity benchmarks jumped by more than 1 per cent on Monday with the Sensex soaring by over 300 points and the Nifty surpassing the psychological level of 7,700 as the government’s decision to cut interest rates on small savings further bolstered speculation of a rate cut by the Reserve Bank of India (RBI) at its upcoming policy meet on April 5.
Marking a second straight rally, the 30-share Sensex jumped by 332.63 points or by 1.33 per cent to end at 25,285.37, while the Nifty closed at 7,704.25 up by 99.9 points or by 1.31 per cent.
The BSE Sensex touched intraday high of 25,327.45 and intraday low of 24,988.27. The NSE Nifty touched intraday high of 7,713.55 and intraday low of 7,617.7.
The country’s central bank is poised to cut the repo rate by at least 25 basis points next month as softening consumer inflation, coupled with the government’s decision to maintain fiscal prudence in the Union Budget leave more leeway for policy easing to help buoy demand and revive investments in Asia’s third biggest economy. Moreover, a reduction in the rate offered on small savings schemes, which are seen competing with term deposits offered by banks, also pave the way for further softening of borrowing costs.
Sentiment was also boosted after the Foreign Investment Promotion Board (FIPB) has given the green signal to 15 FDI investment proposals worth Rs 7,262 crore including that of Japanese insurer Nippon Life Insurance, Tata AIA and Aviva Life.
The top gainers of the BSE Sensex pack were Hindustan Unilever Ltd. (Rs. 880.35,+4.05%), State Bank of India (Rs. 196.65,+2.93%), Sun Pharmaceutical Industries Ltd. (Rs. 835.65,+2.42%), Larsen & Toubro Ltd. (Rs. 1227.80,+2.38%), Tata Motors Ltd. (Rs. 374.55,+2.36%), among others.
On the Sectoral front, consumer goods and capital goods advanced 2.01 per cent and 1.80 per cent, respectively.
The Market breadth, indicating the overall health of the market, was strong. On BSE out of total shares traded 3061, shares advanced were 1615 while 1246 shares declined and 200 were unchanged.
In Asia, China’s Shanghai Composite surged by more than 2 per cent to a two-month high and Hang Seng ended tad higher, as policymakers vowed to loosen curbs on the Chinese stock market. China Securities Finance Corp. stressed that it will boost lending to brokerages for their margin trading business in measures aimed at boosting the country’s stock market which recently fell prey to a rout and leverage more than halved from last year’s peak. Japan’s Nikkei 225 was closed for a holiday.
- Indian equities are likely to witness a gap down opening today after a hefty sell off yesterday following weak global cues and SGX Nifty which was trading lower at 7,264.50, down by 63.5 points or 0.87% at 11:00 am Singapore time, a sign that Dalal Street may witness a bearish opening today.
- On the Asian market front, while markets in China and Hong Kong remained closed for Lunar New Year holidays, Japan’s Nikkei 225 extended yesterday’s slide, falling over 2% as fears over market volatility pushed up the yen, raising concerns over Japan’s economic recovery.
- Traders also turned cautious ahead of Fed Chair Janet Yellen’s testimony to the Congress on Wednesday in which she may offer some cues over when the Fed is likely to raise interest rates next.
- Further, a plunge in crude oil prices which fell below USD 28 a barrel mark after the IEA forecast the global oil surplus would be larger than previously expected in the first half of 2016 was weighing on the sentiments.
- Back home, investors focus will be on ACC and Ambuja Cements ahead of the quarterly earnings today.
- Further, shares of Apollo tyres would remian in focus in today’s trade as the company reported 51.35% increase in consolidated net profit at Rs 278.5 crore for the third quarter ended December 31, 2015. Further, the net sales during the quarter stood at Rs 2,929.45 crore as against Rs 3,037.29 crore in the corresponding period of the previous fiscal.
At 9:49AM BSE SENSEX was at 24025.29, down by 454.55 points or by 1.86 per cent while the NSE Nifty was at 7308.2, down by 126.9 points or by 1.71 per cent.
The BSE MIDCAP was at 10010.27, down by 228.17 points or by 2.23 per cent while the BSE SMLCAP was at 10283.5, down by 242.42 points or by 2.3 per cent.
The top gainers of the BSE Sensex pack were Sun Pharmaceutical Industries Ltd. (Rs. 797.00,+0.36 per cent), among others.
The top losers of the BSE Sensex pack were Tata Steel Ltd. (Rs. 228.80,-3.85 per cent), Oil And Natural Gas Corporation Ltd. (Rs. 209.90,-3.72 per cent), State Bank of India (Rs. 176.30,-3.71 per cent), Reliance Industries Ltd. (Rs. 1006.50,-3.56 per cent), Axis Bank Ltd. (Rs. 379.30,-3.51 per cent), among others.
The Market breadth, indicating the overall strength of the market, was weak. On BSE, out of total 1798 shares traded, 203 shares advanced, 1545 shares declined while 50 were unchanged.
Among the sectoral indices on BSE, BSE Realty index was at 1161.84, down by 36.26 points or by 3.03 per cent led by Prestige Estates Projects Ltd. (Rs. 176.80,-4.48 per cent), Indiabulls Real Estate Ltd. (Rs. 49.55,-3.88 per cent), DLF Ltd. (Rs. 92.40,-3.80 per cent), Housing Development & Infrastructure Ltd. (Rs. 65.50,-3.68 per cent), Unitech Ltd. (Rs. 5.52,-3.66 per cent).
Asian stocks retreated after gaining in the previous session as further slide in global crude oil prices weighed on investor sentiment. US crude futures fell below $28 per barrel while Brent crude was trading below $29 a barrel. Chinese stocks which had surged over 3 per cent in the previous session were trading with marginal losses. Among other markets in the region, Nikkei was down 2.2 per cent, Hang Seng eased 3 per cent while Straits Times was down nearly 2 per cent.