Sensex closes 256 points higher, Nifty nears 10,700 mark; banking stocks gain
BusinessToday.In April 27, 2018
The Sensex and Nifty closed higher on Friday buoyed by optimism over Q4 earnings and buying in banking stocks. While the Sensex closed 256 points higher to 34,969, Nifty rose 74 points to close at 10,692 level.The Sensex breached the 35000 level intra day but erased gains due to profit booking.
Axis Bank (8.97%), SBI (3.99%) and ICICI Bank (3.34%) were the top gainers on Sensex. The Axis Bank closed higher on positive management commentary that recognition of bad loans in this cycle was nearly complete during its Q4 earnings. The lender reported its first ever quarterly loss of Rs 2,189 crore in the January-March quarter of the last fiscal and made heavy provisions against bad loans.
Sameet Chavan, Chief Analyst, Technical and Derivatives at Angel Broking said, "Now, the recent hurdle of 10640 has been crossed on a closing basis and thus, we may see extension of this move towards 10750 - 10800 in coming days. On the lower side, the immediate base seems to have shifted higher towards 10640 - 10600 (earlier hurdle becomes support) from 10495. Hence, going ahead, traders should trade with a stock specific positive bias and look to lighten up positions around 10750 - 10800. At this juncture, we are a bit unsure whether market has enough strength to surpass 10800 or not. Hence, one need to keep booking timely profits and should rather shift stop losses higher at 10640 - 10600."
Banking stocks led the gains on benchmark indices with BSE bankex rising 559 points to 28529 level. Other major gainers among the BSE sectoral indexes were capital goods (1.40%) and oil and gas index (1.05%).
Information technology stocks which logged gains of late due to weak rupee succumbed to profit booking with the BSE IT index falling 1.06%- the maximum losses among the sectoral indexes.
The rupee closed at 66.66 level against the dollar compared to the currency's Thursday closing level of 66.75 level.
The Reliance Industries stock closed 1.99% higher ahead of the conglomerate's Q4 earnings set to be announced after market hours today. The stock opened at 988 level and hit a fresh 52-week high of 1,010.70 on BSE. The stock closed at 994.75 level on BSE.
The Maruti Suzuki stock closed 1.90% lower at Rs 8,777.95 after the firm reported posted a 10 percent rise in quarterly net profit but missed analysts' expectations due to higher tax expenses. The firm clocked Rs 1,882 crore ($281.74 million) net profit compared to Rs 1,711 crore a year earlier. That compared with the Rs 2,110 crore average estimate of 22 analysts, Thomson Reuters data showed.
Market breadth was positive with 1401 stocks rising against 1234 closing lower on BSE.
Abhijeet Dey, senior fund manager-Equities, BNP Paribas Mutual Fund said,"Markets witnessed a gap up opening today and continued to trade firm through the day. Encouraging Q4 numbers and positive global cues buoyed investor sentiment and pushed the Sensex to flirt with the psychologically important 35000 level. Global sentiment was also upbeat after Treasury yields in the US pulled back and the European Central Bank kept rates unchanged. Barring the IT index, all other sectoral indices on the National Stock Exchange closed the day in the green."
Most global stock markets followed Wall Street higher on Friday on strong U.S. earnings, as investors watched the inter-Korean summit.
In early trading, Germany's DAX rose 0.8 percent to 12,600.90 and France's CAC 40 added 0.1 percent to 5,460.95. London's FTSE 100 edged up 7 points to 7,428.50. On Wall Street, futures for the Standard & Poor's 500 index fell 0.2 percent and the future for the Dow Jones industrial average lost 0.3 percent.
The Shanghai Composite Index rose 0.2 percent to 3,082.23 and Tokyo's Nikkei 225 added 0.7 percent to 22,467.87. Hong Kong's Hang Seng advanced 0.9 percent to 30,280.67 and Seoul's Kospi was 0.7 percent higher at 2,492.40. Sydney's S&P-ASX 200 gained 0.7 percent to 5,939.60 and India's Sensex climbed 0.8 percent to 35,003.46. New Zealand, Taiwan and Southeast Asian markets also rose.
Stocks climbed as Facebook led a rally by technology companies. Amazon, Microsoft, Starbucks and United Parcel Service reported higher first-quarter profits. Strong results from companies including Chipotle Mexican Grill and O'Reilly Automotive helped retailers and other consumer-focused companies. Energy companies also climbed. The Standard & Poor's 500 index rose 1 percent to 2,666.94. The Dow Jones industrial average added 1 percent to 24,322.34. The technology-heavy Nasdaq composite advanced 1.6 percent to 7,118.68.