Mumbai: India’s Nifty 50 Index on Tuesday hit an all-time high, while the benchmark Sensex hit a near-all-time high as investors cheered an unprecedented victory by the Bharatiya Janata Party (BJP) in Uttar Pradesh. Both Sensex and Nifty gained over 2% each.
In intraday trade, the Sensex index gained as much as 2.13% or 615.70 points to 29,561.93 points, a level last seen on 4 March 2015. The Sensex is now 500 points away from its all-time high. Nifty 50 Index surged as much as 2.11% or 188.20 points to hit an all-time high of 9122.75.
At 9.27am, Sensex was trading at 29,456.82 points, up 1.76% or 510.59, while Nifty 50 Index rose 1.8% or 160.50 points to 9,095.05.
On Saturday, the BJP won an unexpected 312 out of 403 seats in the assembly elections of the India’s largest state, raising expectations of continued political stability, smooth implementation of a proposed goods and services tax and reforms in areas such as labour laws and land acquisition.
Experts said that the remaining two years of the current government at the Centre will see bolder initiatives than even the politically risky demonetisation move. BJP leaders said that the focus will now be on compliance and improving the ease of doing business. Also, a far more aggressive campaign against illegal wealth is expected, with focus on the implementation of the new benami law in property transactions.
“The recent state elections win may intensify the government’s economic reform efforts, accelerate economic progress of the large state of UP and strengthen the government’s resolve to address key pending issues (NPLs or non-preforming loans, power). Nonetheless, earnings will be the key to the market’s performance as global and domestic interest rate cycles will likely turn less supportive,” said Kotak Institutional Equities, in a report to its investors.
The government will issue the consumer price inflation (CPI) data and wholesale price inflation (WPI) data for February due later on Tuesday. According to Bloomberg analyst polls, CPI will be at 3.6% for February versus 3.17% a month ago, while WPI will be at 6.1% for February from 5.25% in January.
All the Sensex stocks were trading in green. Among the gainers, ICICI Bank Ltd jumped 4.6%, while Housing Development Finance Corp. Ltd rose 3.2%.
All the sectoral indices, except BSE Metal index, were trading higher. BSE Finance and Bankex were the top gainers, up 2.2% each, followed by BSE Capital Goods, which was up 2%. BSE Realty, Power and FMCG were up 1.6% each.
Investors are cautious as the Federal Open Market Committee is set to raise rates at the conclusion of its two-day meeting on Wednesday. Investors are also looking for clues on how quickly the US central bank is planning to tighten the monetary policy.
12.15pm: Tata Motors Ltd shares rise 1% to Rs473.80. The company said it has offered voluntary retirement scheme . The company expects significant cost benefit from VRS Scheme.
12.00noon: Reliance Capital Ltd shares rise 4% to Rs 559.85. The company said in a notice to BSE that Devan Mody to join the company as the chief executive officer of commercial lending business.
11.50am: Telecom stocks trade lower. Bharti Airtel Ltd shares fall 1.2%, Idea Cellular Ltd shares fall 0.1%.
11.40am: BSE Sensex trades higher by 490 points, or 1.69%, to 29,436, while the Nifty 50 rises 145 points, or 1.62%, to 9.080.
11.32am: Shares of Housing finance companies trading higher. Indiabulls Housing Finance Ltd rose 7.1%, Dewan Housing Finance Ltd 5.2%, Housing Development Finance Corp Ltd rose 3.4%, LIC Housing Finance Ltd rose 2.6%, Repco Home Finance Ltd rose 2.1%, GIC Housing Finance Ltd 3.8%, Can Fin Homes Ltd 2.4%.
11.30am: Golden Tobacco Ltd shares rise 11% to Rs 77.30 after the Income Tax Tribunal quashed orders related to a tax demand of Rs 33.14 crore related to the previous tax assessment years.
11.25am: Ramco Systems Ltd shares rise 3.1% to Rs 359.65 after the company said it won order from New Zealand-based Ravensdown Aerowork to automate and unify the maintenance.
11.20am: Bank of Baroda shares rise 2% to Rs 162.25. The bank will consider fund raising plans in a board meeting due later today.
11.15am: IL&FS Transportation Network Ltd shares rise 2.4% to Rs 102.75 after the company sold stake in Andhra Pradesh Expressway Ltd. for Rs 140.37 crore.
11.10am: Canara Bank Ltd shares rise 1.3% to Rs 288 after the bank on Friday said it had sold a 13.45% stake in its subsidiary Can Fin Homes Ltd for Rs 753.77 crore to an affiliate of Singapore’s sovereign wealth fund GIC Pte Ltd.
11.03am: BSE Sensex trades higher by 497 points, or 1.72%, to 29,443, while the Nifty 50 rises 148 points, or 1.66%, to 9.083.
10.25am: BSE Sensex trades higher by 473 points, or 1.63%, to 29,419, while the Nifty 50 rises 142 points, or 1.59%, to 9.076.
10.20am: Diamond Power Infrastructure Ltd rose 5% to Rs 42.40 after the company said in a notice to BSE that its lenders have approved Rs 1200 crore fund infusion plant by CKP Group.
10.15am: Yes Bank Ltd rose 3.2% to Rs 1527.45. Rating firm CLSA has maintained its buy rating on the bank and increased its target price to Rs 1780 a share from Rs 1620 a share.
10.10am: Oil marketing companies trading higher after international crude oil fell. Bharat Petroleum Corp Ltd rose 1.4%, Hindustan Petroleum Corp 1%, Indian Oil Corp Ltd 0.5%.
10.05am: Gitanjali Gems Ltd rose 6% to Rs 66.80 after its arem Nakshatra World filed draft red herring prospectus with regulator for share listing.
10.00am: NBCC India Ltd rose 2% to Rs 173.80 after the company said it signed an agreement to construct a new court building in Mauritius valued at $35 million.
9.55am: Alkem Laboratories Ltd fell 1.4% to Rs 1945 after the company said its Baddi unit gets three FDA observations.
9.50am: Power Grid Corp Ltd rose 1.5% to Rs 195.35 after the company said it approved various investment proposals aggregating to Rs 1197.10 crore
9.40am: Adani Enterprises Ltd rose 2.4% to Rs 96.30 after Reuters reported that it has applied for financing from an Australian infrastructure fund to build a rail line that is part of a $16 billion coal project in the state of Queensland, Australia’s resources minister said on Monday.
9.33am: BSE Sensex trades higher by 419 points, or 1.45%, to 29.365, while the Nifty 50 rises 127 points, or 1.43%, to 9.062.
9.15am: The rupee opened at 66.21 a dollar and touched a high of 66.18 -- a level last seen on 20 April 2016. At 9.15am, the home currency was trading at 66.19, up 0.63% from its previous close of 66.61.
9.10am: The 10-year bond yield was trading at 6.889% compared to its Friday’s close of 6.904%. Bond yields and prices move in opposite directions. Markets were closed on Monday on occasion of Holi.
9.00am: Asian currencies were trading marginally lower. The Federal Open Market Committee is set to raise rates at the conclusion of its two-day meeting on Wednesday. Traders also looking for clues on how quickly the U.S. central bank is planning to tighten monetary policy. South Korean won was down 0.29%, China Offshore 0.11%, Philippines peso 0.06%, Singapore dollar 0.05%. However, Japanese yen was up 0.05%.
