Business

Sensex surges over 200 points; Nifty above 8,550

Markets have extended gains and are trading near day’s high led by strong buying among FMCG, Healthcare and financials shares.

At 15.05 PM, the 30-share Sensex is up 281 points at 28,238 and the 50-share Nifty has gained 86 points at 8,577.  

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Updated at 2:30 PM

Markets are trading firm in the late noon trades on renewed buying interest in FMCG, Healthcare and financials with Sun Pharma contributing the most to the gains ahead of record date set for the merger with Ranbaxy. 

However, upside gains are capped by loss in the technology stocks after HCL Technologies warned of adverse cross currency impact on the company’s revenue and EBIT in Q3 March 2015 in pre-quarter earnings update.

Markets will be closed on 2 April and 3 April on account of Mahavir Jayanti and Good Friday, respectively.

At 2.30 PM, the 30-share Sensex is up 134 points at 28,091 and the 50-share Nifty has gained 39 points at 8,530.  

On the domestic front, the growth in output of eight core industries, which has a weight of nearly 38% in the Index of Industrial Production, stood at 1.4% in February, a 17-month low.

The Centre’s fiscal deficit crossed the Budget’s revised estimate (RE) by 17.5%, during the April 2014-February 2015 period.

CRUDE OIL

Brent crude oil futures edged lower as markets kept a close watch on US-Iran nuclear talks and the build-up in US oil supplies. For India, the decline in global crude oil prices along with deregulation of diesel price announced by the Indian government in October 2014 will help reduce the government’s fuel subsidy burden and help contain its fiscal deficit. The steep slide in global crude oil prices will also help India in containing its current account deficit and fuel price inflation. India imports 80% of its crude oil requirement.

KEY STOCKS

On the sectoral front, BSE Bankex, FMCG, Healthcare indices are trading higher up to 2%. However, BSE IT and Teck indices are losing sheen and are down up to 1.3%. 

After a weak start, financials have gained momentum in the late noon deals and are gaining across the exchanges. ICICI Bank, Axis Bank, HDFC twins are trading higher up to 1%. State Bank of India, the country’s largest lender, may offer employee share options, recruit specialists and promote faster – radical changes that promise to shake up a bloated, debt-heavy sector. The stock is up nearly 1%.

Sun Pharma is among the top gainers and has gained 4%. ahead of record date set for the merger with Ranbaxy.  Dr Reddys Lab has gained 0.5% after it entered into a definitive agreement to acquire a select portfolio of the established products business of UCB in the territories of India, Nepal, Sri Lanka and Maldives.

Bharti Airtel has gained around 2%.  Bharti Airtel has informed BSE that Mr. Mukesh Bhavnani, Group General Counsel & Company Secretary has resigned from the Company to pursue an assignment outside of the Company.

Engineering conglomerate L&T has gained 0.4% after securing a turnkey order from NTPC for setting up a 2×660 MW greenfield ultra-supercritical thermal power plant in Khargone district of Madhya Pradesh on EPC basis. NTPC has gained nearly 1%.

Shares of Maruti Suzuki India have dropped 2% after reporting 1.6% year-on-year fall in total sales at 111,555 units in March 2015, due to lower sales in the compact segment. The company had sold a total of 113,350 units in March 2014.

M&M is trading higher by 0.5%. M&M has announced its total auto sales numbers at 45,212 units during March 2015 as against 51,636 units during March 2014.

Metal stocks are trading mixed after surveys of China’s manufacturing and services sectors showed persistent weakness in the world’s second-biggest economy in March, adding to bets that Beijing will have to roll out more policy support to avert a sharper slowdown.

The official Purchasing Managers’ Index (PMI), released by the National Bureau of Statistics on Wednesday, edged up to 50.1 in March from February’s 49.9.

Hindalco is up 2%. However, Coal India is down 0.2% and Sesa Sterlite has lost 0.5%.

Tata Steel has divested its entire stake in Lanka Special Steels Limited to E. B. Creasy & Company for a total consideration of around Rs 20.4 crore in an all cash deal.  The stock is up 0.5%.

Shares of three natural gas production companies including RIL, ONGC and GAIL are trading lower up to 1.5% after the government reduced the natural gas price by 7.72% from today, 1 April 2015.

IT stocks have dropped after HCL Technologies warned of adverse cross currency impact on the company’s revenue and EBIT in Q3 March 2015 in pre-quarter earnings update. Infosys and TCS are trading lower by 2.4% and 0.5% each.

FMCG majors ITC and HUL are trading high and are up 1% each.

Airline stocks are gaining after state-run oil marketing companies cut jet fuel prices. Jet Airways is up 0.6% and SpiceJet is up over 3%. Jet fuel accounts for one-third of operational costs of airlines, say analysts.

Shares of fertiliser companies are trading higher in early morning trade on reports that the government announced a uniform gas pricing policy and pooling of domestic and imported natural gas for urea plants in India.

Zuari Agro Chemicals has rallied 7% while Fertilizers & Chemicals Travancore  (FACT) has surged 5% on the Bombay Stock Exchange (BSE).

The BSE Midcap and Smallcap indices are outperforming the large counterparts and are up between 1-2%.

The market breadth is firm on the BSE with 1,826 advances against 738 declines.