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Sensex adds to gains for fourth day as earnings data loom


Mumbai : Stocks retained their winning knack for the fourth straight day as the Sensex today gained 127 points to end at a fresh 11-month high of 27,942 amid unabated foreign inflows on hopes of better corporate earnings numbers.

Expectations of more stimulus action from Japan to fast-track growth and another record close in the US laid the pitch for the rally.

But concerns lingered after WPI inflation accelerated for the third straight month in June hitting 1.62 per cent on costlier food and manufactured items, official data showed today.

June retail inflation, announced on Tuesday, was no better, which touched a 22-month high of 5.77 per cent.

While TCS is scheduled to come out with its results on Thursday after market hours, that of Infosys is due on Friday.

There was good news on the monsoon front, which cheered investors. According to IMD, the country has so far received four per cent more rainfall than normal. The monsoon has also covered the entire country two days ahead of its normal date after reaching last frontiers of Kutch and Western Rajasthan.

The covering-up of short positions aided the upmove. But the suspense over a new RBI Governor continued to hold back investors.

The Sensex opened higher before settling at 27,942.11, a gain of 126.93 points, or 0.46 per cent. The barometer ended at 28,067.31 on August 14 last year. It had gained 688.28 points in the previous three sessions.

The 50-share NSE Nifty settled 45.50 points, or 0.53 per cent higher at 8,565.

Globally, Asian markets followed overnight gains in the US, which saw a record close on the Wall Street and a higher opening in Europe. London’s FTSE gained 0.8 per cent, Germany’s DAX 1.3 per cent and Paris CAC 0.9 per cent in their early session.

As many as 22 scrips out of 30-share Sensex pack ended higher. ICICI Bank was right on top rising 2.72 per cent followed by Maruti Suzuki.

Shares of TCS ended 1.16 per cent higher ahead of earnings announcement.

Other big movers include SBI (2 per cent), Power Grid (1.82 per cent), GAIL (1.45 per cent) and Tata Motors (1.20 per cent).

Consumer durable sector was in the thick of action as the index rose 2.16 per cent, followed by banking 1.48 per cent, PSU 1.12 per cent and capital goods 1.01 per cent.

Small-cap and mid-cap too firmed up 0.73 per cent and 0.54 per cent, respectively, on increased buying by retail investors.

Jewellery stocks hogged limelight after the government increased excise duty exemption limit for small scale industry to Rs 10 crore that could bring relief to gold jewellers. Yesterday, it also decided to waive the levy on sale of traded goods and relaxed other procedural norms.

Shares of Tara Jewellers soared, Shree Ganesh Jewellery House, Gitanjali Gems, Tribovandas Bhimji Zaveri, PC Jeweller and Titan Company surged by up to 6.45 per cent.

Foreign portfolio investors (FPIs) remained net buyers, purchasing shares worth Rs 290.53 crore yesterday, as per provisional data.    “Given the global sanguine, the domestic market overlooked the surge in June WPI inflation… Upcoming monetary policies from central banks across the globe and the announcements of quarter results will set the near term tone in the market,” said Vinod Nair, Head of Research, Geojit BNP Paribas Financial Services.

The market breadth turned positive as 1,587 stocks ended higher, 1,100 declined, while 186 went unchanged.

Total turnover dropped to Rs 3,097.36 crore, from Rs 3,941.25 crore yesterday.

“Markets roared ahead, mostly fuelled by expectations of GST clearance in the monsoon session of Parliament. It also helped that European markets also rose, greeting the new British PM,” said Anand James, Chief Market Strategist, Geojit BNP Paribas Financial Services.

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