India : Sensex up 181 pts, Nifty above 8500 for 1st time since Aug 2015
Tue Jul 12 2016
Rajesh Sharma (2003 articles)

India : Sensex up 181 pts, Nifty above 8500 for 1st time since Aug 2015

Mumbai : Indian equity benchmarks participated in global rally for the second consecutive session on Tuesday, hitting 11-month closing highs ahead of industrial output and CPI inflation data due later today.The 30-share BSE Sensex climbed 181.45 points or 0.66 percent to 27808.14, supported by banking & financials, oil and metals stocks.

The 50-share NSE Nifty closed above the 8500 level for the first time since August 14, 2015. The index jumped 53.15 points or 0.63 percent to 8521.05.

Expectation of global easing of liquidity or global easing of rates has obviously helped the markets not only in India, but across other markets also, says Rahul Singh of Ampersand Capital Investment Advisors LLP.

According to him, as the market heads into earnings season, some consolidation is expected but a correction, if it happens, will not be deep.

The BSE Midcap index gained 0.5 percent, closing at record high despite the negative market breadth. About 1522 shares declined against 1237 advancing shares on Bombay Stock Exchange.

Global markets remained strong today as well. Asia closed higher, tracking positive lead from the Wall Street. Nikkei extended its rally, up 2.5 percent as stimulus comments made by Japanese Prime Minister Shinzo Abe late on Monday helped to weaken the yen. China’s Shanghai was up 1.8 percent and Hong Kong’s Hang Seng rose 1.65 percent.

European markets like France’s CAC and Germany’s DAX were up 1.65 percent (at 16 hours IST) as uncertainty over the UK’s political scene diminished after news of the imminent appointment of Home Secretary Theresa May as UK prime minister. Britain’s FTSE was flat. Brent crude oil prices jumped over 2 percent on weaker US dollar.

On home turf, Nifty Bank ended at fresh 11-month closing high, up 1.5 percent. It was majorly supported by ICICI Bank that contributed 40 percent to Nifty gain & over 60 percent to Nifty Bank gain, up 4.68 percent.

ICICI Bank in its annual general meeting yesterday said shareholders approved fundraising up to Rs 25,000 crore in this fiscal and it will launch IPO for ICICI Prudential Life this year. Meanwhile, rating agency S&P Global has removed bank’s Bahrain branch bond from credit watch negative and affirmed ‘BBB-‘ rating.

IDFC Bank was up 8.4 percent after it acquired Tamil Nadu-based micro finance company Grama Vidiyal Micro Finance.

Hindalco Industries gained 4.8 percent and Nalco rallied 13.3 percent after New York-based aluminum company Alcoa’s second quarter (April-June) earnings beat analysts’ expectations.

Cairn India and Vedanta rallied 7-8 percent. The merger of both companies is now imminent as Life Insurance Company (LIC) has given an informal green light for it, sources have told CNBC-TV18.

Among other largecaps, Tata Steel surged 4.6 percent followed by HDFC, Axis Bank, Reliance Industries, Maruti Suzuki and ONGC with 1-2 percent rally. ITC, Asian Paints, Sun Pharma, HUL, Dr Reddy’s Labs, Cipla and Coal India fell 0.5-1 percent.

Quess Corp, the subsidiary of travel company Thomas Cook, has a stellar debut. The stock closed at Rs 503.10, up 58.7 percent over its issue price of Rs 317.

Rajesh Sharma

Rajesh Sharma

Rajesh Sharma is Correspondent for Stock Market of South East Asia based in Mumbai. He has been covering Asian markets for more than 5 years.