Expectations of healthy Q4 results buoy markets (Roundup)

Mumbai, April 18 (IANS) Expectations of healthy quarterly results, along with better-than-expected macro-economic data and forecast of above-average monsoon rains, buoyed the Indian equity markets on Monday.

Consequently, the key indices of the Indian equity markets ended the day’s trade in the green.

The wider 50-scrip Nifty of the National Stock Exchange (NSE) ended higher by 64.25 points or 0.82 percent, to 7,914.70 points.

The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 25,833.16 points, closed the day’s trade at 25,816.36 points — up 189.61 points or 0.74 percent from the previous close at 25,626.75 points.

The Sensex touched a high of 25,870.03 points and a low of 25,634.12 points during the intra-day trade.

The BSE market breadth was tilted in favour of bulls — with 1,439 advances and 1,180 declines.

Both the key Indian indices had ended on a higher note in the previous trade session on Wednesday. The barometer index had surged 481 points or 1.91 percent, and the NSE Nifty gained 142 points or 1.84 percent.

On Monday, both the key indices opened on a firm note. However, gains were soon ceded due to worries over decline in global crude oil prices and negative Asian markets.

Nevertheless, expectations of healthy fourth quarter (Q4) results, helped equity markets pare their losses.

Besides, positive macro-economic data released on Monday showed that India’s annual wholesale inflation remained in the negative zone for the 17th straight month. The data cheered investors and supported prices.

“Markets opened on a positive note after a long weekend resulting in gains on account of strength in global markets,” Vaibhav Agarwal, vice president and research head at Angel Broking, told IANS.

“We have heavyweights such as HDFC bank and Wipro set to declare numbers this week. Earnings would be the key driver for the markets in the coming days.”

Anand James, chief market strategist, Geojit BNP Paribas Financial Services said: “Already on a roll, helped by good macros and weather forecasts, markets opened on a higher note welcoming by Infy’s Q4 results, raising expectations that the result season as a whole would be better than previously anticipated.”

“Meanwhile, there was little help from the global markets which were bogged down by the fall in oil prices, but with the outcome of the oil producers’ meeting largely unsurprising, the Indian markets closed on a firm note.”

Furthermore, foreign institutional investors (FIIs) were net buyers during the day’s trade, while the domestic institutional investors (DIIs) sold stocks.

Data with stock exchanges showed that FIIs invested Rs.977.98 crore, while the DIIs sold stocks worth Rs.313.22 crore.

Sector-wise, scrip of IT (information technology), consumer durables, and TECK (technology, entertainment and media) witnessed healthy buying, whereas banking and automobile stocks came under heavy selling pressure.

The S&P BSE IT index surged by 349.04 points, followed by the consumer durables index, which rose by 201.94 points; and the TECK index gained by 177.20 points.

In contrast, the S&P BSE banking index receded by 96.17 points and the automobile index declined by 50.34 points.

Major Sensex gainers during Monday’s trade were Infosys, up 5.70 percent at Rs.1,238.80; Cipla, up 2.42 percent at Rs.524.15; Bharti Airtel, up 1.92 percent at Rs.358.55; Lupin, up 1.77 percent at Rs.1,571.10; and NTPC, up 1.68 percent at Rs.139.45.

Major Sensex losers during the day’s trade were Hero MotoCorp, down 2.74 percent at Rs.3,065.35; State Bank of India (SBI), down 2.56 percent at Rs.186.85; GAIL, down 2.47 percent at Rs.359.45; ONGC, down 2.46 percent at Rs.207.75; and ICICI, down 1.76 percent at Rs.236.75.

The Indian equity markets will be closed on Tuesday on account of Mahavir Jayanti.

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