Mumbai: Investors cheered as benchmark indices settled the day at their respectinve closing highs with Nifty ending above 9,400 for the first time ever as IMD’s new monsoon forecast raised prospects of higher agricultural and economic growth, cheering the investors.
India is likely to receive higher monsoon rainfall than previously forecast as concern over the El Nino weather condition has eased, the chief of the weather office said on Tuesday. IMD earlier estimated this year’s monsoon rains at 96% of the 50-year average of 89 cm.
Sentiment was also lifted by Asian stocks, which edged higher for a third consecutive day, as investors focused on strong corporate earnings and the dollar gave back some of its recent gains.
During the day, the broader NSE index rose as much as 1.05% or 98 points to a record high of 9,415, surpassing its previous milestone of 9,377. The index moved from 9,300 to 9,400 in 11 trading sessions. The 30-share Sensex also rose as much as 338 points to its record high of 30,271 at intra-day moving beyong its previous peak of 30,177.
Both indices also scaled new closing highs with BSE Sensex settling the day 315 points higher at 30,248 while the broader Nifty50 was ended at 9,407, up 90 points. Both indices hit their last closing highs on May 5.
Along with the benchmark S&P BSE Sensex, S&P BSE 500, S&P BSE Midcap and S&P BSE Smallcap index hit new highs after the IMD said that the prospects of the monsoon have brightened.
In broader markets, BSE Midcap and BSE Smallcap indices gained 0.8% each, in line with the benchmark indices.
“IMD’s bullish monsoon forecast eased concerns over El Nino weather conditions and added further legs to the ongoing rally. Earnings positivity has obviously been keeping markets buoyant and prospects of FII turning buyers in equities also kept markets push higher. Financial services stocks were also seen rallying reflecting markets’ expectations for further strength in equities,” said Anand James, Chief Market Strategist, Geojit Financial Services in a note.
Meanwhile, after a gap of nearly two weeks, the foreign institutional investors (FII) have turned net buyers in the Tuesday’s trading session first time after April 25, 2017. The made net investments worth of Rs 333 crore in equities, the stock exchange provisional data shows.
Sectors and Stocks
FMCG, Pharma, and auto indices gained over a percent on the Nifty, while the IT index was down by half a percent.
Bharti Airtel, Hindustan Unilever, HDFC and M&M were the top gainers, while Wipro, TCS, Asian Paints and ICICI Bank lost the most.
The market price of 77 stocks from the BSE 500 and Smallcap indices have hit their respective 52-week highs today. Of these, more than half or 40 stocks hit their fresh lifetime highs on the BSE.
Hindustan Unilever, ABB India, Kotak Mahindra Bank, UltraTech Cement, Britannia Industries, Cadila Healthcare, Eicher Motors, Reliance Capital and Siemens hit their respective 52-week highs from S&P BSE 100.
Bharti Airtel rose over 10% to Rs 380, marking their biggest intraday gain in over two months on subscriber additions and Africa business although it reported its smallest quarterly profit in over four years on Tuesday amid strong competition. The stock later pared some gains to end 8% higher.
Chambal Fertilisers, Coromandel International, Escorts, Finolex Industries, Gujarat State Fertilisers & Chemicals, National Fertilisers, Rashtriya Chemicals and Fertilizers and Zuari Agro Chemicals from the agri-related sector stocks hit new highs on hopes of good monsoon.
Shares of Petronet LNG rose 4.4% intraday on strong Q4 numbers and bonus declaration. The company’s standalone Q4FY17 (Jan-March) net profit was up 18.4% at Rs 470.8 crore against Rs 397.5 crore, in the previous quarter. The stock ended 1.2% higher.
Among losers, IDBI Bank fell 5% after RBI initiated “prompt corrective action” (PCA) for the bank over its high bad loans and negative return on assets.
Global Markets
European shares pulled back on Wednesday from 21-month highs hit after strong earnings while the dollar fell on concerns that US President Donald Trump’s dismissal of his FBI chief could make passage of his tax reform plans more difficult.
The pan-European STOXX 600 index fell 0.2%, led down by construction and materials stocks, having hit its highest since August 2015 on Tuesday.
Asian shares, however, edged up for a third consecutive day. MSCI’s main index of Asia-Pacific shares, excluding Japan rising 0.1%, having earlier matched a two-year high hit last week.
South Korean stocks led losers as investors took profits after liberal leader Moon Jae-in was elected president, while Chinese shares closed lower after factory gate prices ion the world’s second-biggest economy cooled more than expected in April.
Tokyo shares hit a 17-month high, up 0.3% on the day as a relatively weak yen outweighed concerns triggered by Trump’s sacking of Comey.
