Sensex rebounds 244 pts, Nifty ends tad below 9900; broader markets outperform
The market recouped more than half of previous session’s losses on Wednesday, with the Nifty closing near 9,900 level, lifted by good progress of monsoon, consistency in USDFA approvals, stable earnings so far and positive global cues.
The 30-share BSE Sensex rallied 244.36 points or 0.77 percent to 31955.35 and the 50-share NSE Nifty rose 72.45 points or 0.74 percent to 9,899.60, backed by FMCG, pharma and metals stocks.
“This recovery shows that bulls are in full control and likely to push the markets higher. However, we’re seeing selective buying now and thus suggest continuing stock specific trading approach,” Jayant Manglik, President, Retail Distribution, Religare Securities said.
He further said earnings season has just begun and it holds the key for the next directional move so closely watch the announcements for further cues. He expects Nifty to consolidate in a broader range 9,700-10,000 in near future.
The broader markets also participated in the rally and outperformed benchmarks. The BSE Midcap and Smallcap indices gained 1 percent each as about two shares advanced for every share falling on the exchange.
Nifty Pharma showed solid performance among sectoral indices, up 2.1 percent followed by Metal (up 1.94 percent) and FMCG (up 1.4 percent).
Aurobindo Pharma was biggest gainer, up 4.3 percent on US FDA approval for Sevelamer tablets that are used to treat patients with chronic kidney diseases.
Cadila Healthcare gained nearly 4 percent after the launch of drug that used for the treatment of mild to moderate ulcerative colitis, in the US and the FDA approval for cholesterol and antifibrinolytic drugs.
Lupin (up 1.4 percent) and Sun Pharma (up 1.8 percent) also participated in rally as the former received approval from US Food and Drug Administration for Armodafinil that is used to treat excessive sleeping disorder and later got approval for Paroxetine Hydrochloride that is used for treatment of OCD, panic attacks.
Index heavyweights ITC and Reliance Industries rebounded 2.4 percent and 0.9 percent after a 12.6 percent and 2 percent correction in previous session, respectively.
HPCL shares rallied 4 percent after oil minister Dharmendra Pradhan, in parliament, said PSU oil giant ONGC sent proposal to acquire oil retailer HPCL and the ministry is working on in-principle approval to ONGC’s plan for HPCL acquisition. Sources told CNBC-TV18 that the Cabinet is likely to approve this merger deal later today.
MRPL also surged 6 percent as both ONGC and HPCL these companies hold major stake in the company. ONGC was up 0.8 percent.
Telecom stocks saw huge buying interest as Idea Cellular rallied 9 percent and Bharti Airtel gained 3.2 percent.
Nifty Bank ended at record closing high of 24,152.65, up 0.54 percent as Kotak Mahindra Bank, HDFC Bank, SBI and Axis Bank rose up to 1.8 percent.
TCS, Tata Motors, Dr Reddy’s Labs, Cipla and Coal India among others rallied 1-3 percent whereas Infosys, HDFC, HUL, ICICI Bank and Hero MotoCorp were moderately under pressure.
Mastek, Sterlite Technologies, Bajaj Finance and Havells rallied up to 20 percent after June quarter earnings.
European bourses were moderately higher as investors took stock of a series of corporate announcements from across the continent. France’s CAC and Britain’s FTSE were up 0.2 percent each at the time of writing this article. Asia markets closed in the green, with China’s Shanghai Composite, Hong Kong’s Hang Seng, Australia’s ASX 200 up 0.6-1.4 percent.
