Sensex reclaims 25,000 mark as trading for the week begins on positive note

A rally on the first trading session of the week took the barometer index, the S&P Sensex, past the psychologically important 25,000 mark. The surged 348.32 points or 1.41% to settle at 25,022.16. The gains for the 50 index were higher than the Sensex’s gains in percentage terms. The Nifty gained 116.20 points or 1.54% to settle at 7,671.40. Telecom, IT and stocks and index heavyweight led the rally for the two key benchmark indices. The Sensex and the Nifty, both, hit one-week closing high. All the nineteen sectoral indices on BSE registered gains.

The latest rally on the domestic bourses materialized as world stocks rose after data showing low Chinese inflation for March 2016 triggered expectations of more stimulus measures from the Chinese government to boost China’s economic growth. The Sensex snapped a two-day losing streak. The Nifty edged higher for the second day in a row.

Metal & mining stocks gained as data showing low Chinese inflation for March 2016 triggered expectations of more stimulus measures from the Chinese government to boost China’s economic growth. Tata Steel rose after the company said its total steel sales increased 12.87% to 27.18 lakh tonnes in Q4 March 2016 over Q4 March 2015. L&T gained after a wholly owned subsidiary of the company won two orders valued at approximately $370 million from Petroleum Development Oman LLC.

Bharti Airtel rose after the company said it would pay Rs 3500 crore to acquire rights to use 4G spectrum of Aircel in eight telecom circles. Shares of state-run power equipment major Bharat Heavy Electricals extended recent gains triggered by the company announcing a surge in its order inflow for the year ended 31 March 2016. Tata Motors rose after the company said that its global wholesales including Jaguar Land Rover rose 11% to 1.18 lakh units in March 2016 over March 2015.

In overseas stock markets, Italian banks led gains for European stocks on speculation that a fund may be set up to deal with Italian banking sector’s bad loans. A meeting between Italy’s central bank and Italian Treasury officials is being convened today, 11 April 2016. Earlier during the global day, Chinese stocks edged higher as data showing low Chinese inflation for March 2016 triggered expectations of more stimulus measures from the Chinese government to boost economic growth. In mainland China, the Shanghai Composite closed 1.64% higher. Bullish remarks from a Chinese investment analyst on China A-shares or yuan-denominated stocks trading on the mainland aided the upmove in Chinese stocks. In Hong Kong, the Hang Seng index settled 0.35% higher.

US stocks registered small gains during the previous trading session on Friday, 8 April 2016, as yen eased from its highest level against the dollar in almost 18-months after Japan’s finance minister Taro Aso said he may act against what he termed one-sided yen rise. The yen, typically viewed as a safe-harbor asset, edged higher in recent trading sessions as fears that global central banks won’t be able to fix the sluggish global economy sapped investor sentiment and spurred a flight to perceived safety. Meanwhile, New York Fed President William Dudley on Friday, 8 April 2016, said that the US central bank must maintain a cautious and gradual approach to raising interest rates.

The Sensex rose 348.32 points or 1.41% to settle at 25,022.16, its highest closing level since 4 April 2016. The index rose 376.08 points or 1.52% at the day’s high of 25,049.92. The index lost 150.64 points or 0.61% at the day’s low of 24,523.20.

The Nifty rose 116.20 points or 1.54% to settle at 7,671.40, its highest closing level since 4 April 2016. The index rose 123.60 points or 1.63% at the day’s high of 7,678.80. The index lost 38.35 points or 0.5% at the day’s low of 7,516.85.

The BSE Mid-Cap index rose 1.09%. The BSE Small-Cap index rose 0.63%. Both these indices underperformed the Sensex.

The market breadth indicating the overall health of the market was positive. On BSE, 1,490 shares rose and 1,097 shares fell. A total of 125 shares were unchanged.

The total turnover on BSE amounted to Rs 3854.09 crore, higher than turnover of Rs 1956.81 crore registered during the previous trading session.

Among the sectoral indices on BSE, the S&P BSE Industrials index (up 1.83%), the BSE IT index (up 1.92%), the BSE Telecom index (up 3.89%), the BSE Auto index (up 2%), the BSE Bankex index (up 1.67%), the BSE Capital Goods index (up 1.7%), the BSE Metal index (up 1.78%) and the BSE Power index (up 2.1%) outperformed the Sensex. The S&P BSE Finance index (up 1.18%), the BSE Oil & Gas index (up 1.01%) and the BSE Realty index (up 1.1%) underperformed the Sensex.

Index heavyweight and cigarette major ITC rose 1.6% at Rs 326.50. The stock hit a high of Rs 327.50 and a low of Rs 316.95 in intraday trade.

L&T gained after the company announced that its wholly owned subsidiary L&T Hydrocarbon Engineering (LTHE) has won two orders valued at approximately $370 million from Petroleum Development Oman LLC. The stock rose 1.86% at Rs 1,212.80.

Shares of state-run power equipment major Bharat Heavy Electricals (Bhel) rose 4% at Rs 127.35, with the stock extending recent gains triggered by the company announcing a surge in its order inflow for the year ended 31 March 2016 (FY 2016). The stock had risen 7.41% in the preceding two trading sessions to settle at Rs 122.45 on Friday, 8 April 2016, from its close of Rs 114 on 6 April 2016. On provisional basis, Bhel’s order inflow jumped 41.9% at Rs 43727 crore in FY 2016 over FY 2015.

Bank stocks edged higher on renewed buying. Among public sector banks, Bank of Baroda (up 4.26%), Union Bank of India (up 2.98%), State Bank of India (up 2.76%), Canara Bank (up 2.63%), Bank of India (up 1.97%), Punjab National Bank (up 1.84%), IDBI Bank (up 1.34%) edged higher. Central Bank of India (down 0.53%) and United Bank of India (down 0.51%) edged lower.

Among private sector banks, IndusInd Bank (up 2.43%), Axis Bank (up 1.99%), ICICI Bank (up 1.54%), Yes Bank (up 1.15%) and HDFC Bank (up 0.41%) edged higher.

Kotak Mahindra Bank rose 1.02% at Rs 671.75. The bank announced after market hours on Friday, 8 April 2016, that its subsidiary, Kotak Mahindra (International) (KMIL), which is registered as a foreign portfolio investor (FPI) has acquired 12.89 lakh shares at Rs 92.69 each, aggregating to Rs 11.90 crore being 7.61% of the paid-up capital of Banswara Syntex. Banswara Syntex was incorporated on 5 May 1976 and registered total income of Rs 1243.05 crore in FY 2015. It has operations in textiles industry. Shares of Banswara Syntex rose 2.72% at Rs 109.70.

Metal & mining stocks gained as data showing low Chinese inflation for March 2016 triggered expectations of more stimulus measures from the Chinese government to boost economic growth. Hindalco Industries (up 5.12%), Steel Authority of India (up 2.58%), National Aluminium Company (up 2.19%), JSW Steel (up 2.18%), Hindustan Copper (up 1.1%) and NMDC (up 0.69%) edged higher. Jindal Steel & Power (down 1.2%) and Hindustan Zinc (down 0.06%) edged lower. China is the world’s largest consumer of copper, steel and aluminum.

Meanwhile, High Grade Copper for May 2016 delivery was currently down 0.41% at $2.0785 per pound on the COMEX.

Tata Steel rose after the company said its total steel sales increased 12.87% to 27.18 lakh tonnes in Q4 March 2016 over Q4 March 2015. The stock rose 2.76% at Rs 331.15. Hot Metal production rose 1.42% to 27.14 lakh tonnes in Q4 March 2016 over Q4 March 2015. Crude Steel production rose 4.88% to 25.60 lakh tonnes in Q4 March 2016 over Q4 March 2015. Saleable Steel production rose 6.57% to 25.46 lakh tonnes in Q4 March 2016 over Q4 March 2015.

Meanwhile, Tata Steel’s British subsidiary Tata Steel UK clarified that the company has been cooperating fully with regard to a criminal investigation initiated by UK’s Serious Fraud Office which relates to events in 2015 when during an internal audit conducted by the company, certain inappropriate testing and certification procedures at the South Yorkshire-based speciality steels business were identified. Tata Steel UK took immediate action to address the issues uncovered and the practices were immediately stopped. There have been no recalls of material in service by any customer and no customer has brought a legal claim so far, Tata Steel UK said in a statement.

Vedanta rose 3.2% at Rs 90.25. At the time of releasing data on the company’s production for Q4 March 2016, Vedanta today, 11 April 2016, announced that it is the process of reviewing the carrying value of its assets and long term price assumptions in the light of recent weakness in commodity prices, primarily its oil and gas assets. Any impact of changes to these assumptions on the carrying values will be a non-cash charge and would be reflected in the preliminary results for the year ended 31 March 2016, Vedanta said.

Telecom stocks edged higher on renewed buying. Tata Teleservices (Maharashtra) (up 0.3%), Reliance Communications (up 2.38%) and Idea Cellular (up 5.88%) gained.

Bharti Airtel rose after the company said it would pay Rs 3500 crore to acquire rights to use 4G spectrum of Aircel in eight telecom circles. The stock gained 4.2% at Rs 348.35. Bharti Airtel and its subsidiary, Bharti Hexacom, have entered into a definitive agreement with Aircel and its subsidiaries Dishnet Wireless and Aircel Cellular (together Aircel) to acquire rights to use 20 megahertz (MHz) 2300 Band 4G TD spectrum for eight circles namely, Tamil Nadu (including Chennai), Bihar, Jammu & Kashmir, West Bengal, Assam, North East, Andhra Pradesh and Orissa at an aggregate consideration of Rs 3500 crore.

The spectrum was allotted to Aircel and Dishnet by the Government of India, Ministry of Communication & IT, Department of Telecommunication (DoT) and is valid upto 20 September 2030. The transfer of the right to use for the circles of Andhra Pradesh and Orissa is subject to the revision of spectrum caps with the upcoming auction to be conducted by DoT. With the rights to use 4G spectrum of Aircel in eight telecom circles, Bharti Airtel will become pan India 4G operator. The announcement was made after market hours on Friday, 8 April 2016.

Shares of oil exploration and production (E&P) companies edged higher after surge in crude oil prices. ONGC (up 0.68%) and Oil India (up 0.44%) rose. Higher crude oil prices could result in higher realization from crude sales for oil exploration firms.

Cairn India rose 1.78% at Rs 151.55. The company’s average gross production fell 9% to 1.97 lakh barrels of oil equivalent per day (boepd) in Q4 March 2016 over Q4 March 2015. The decline in production was primarily due to lower volumes from the Ravva field on account of its natural decline. The announcement was made during market hours today, 11 April 2016.

Index heavyweight Reliance Industries rose 0.19% at Rs 1,039.85. The stock hit a high of Rs 1,045 and a low of Rs 1,033.30 in intraday trade.

In the global commodities markets, Brent for June settlement was currently up 0.05 cents at $41.99 a barrel. The contract had jumped $2.51 a barrel 6.36% to settle at $41.94 a barrel during the previous trading session following a decline in US drilling and on hopes that the world’s major oil exporters would freeze output.

The world’s major crude oil producers led by Russia and Saudi Arabia have convened a meeting on Sunday, 17 April 2016, in Doha, Qatar to discuss measures to stabilise prices, including a proposal to freeze output. Saudi Arabia has said that it would freeze oil production only if Iran follows suit. Iran has ruled out freezing output until its production recovers to pre-sanction levels.

Shares of public sector oil marketing companies (PSU OMCs) gained. BPCL (up 1.67%), HPCL (up 2.29%) and Indian Oil Corporation (IOC) (up 0.84%) gained.

IT stocks gained. HCL Technologies (up 0.55%), TCS (up 3.21%), Tech Mahindra (up 2.86%) and Wipro (up 3.36%) edged higher.

IT major and index heavyweight Infosys edged higher in volatile trade. The stock gained 1.43% to Rs 1,184.40. The stock hit high of Rs 1,187.25 and low of Rs 1,151.40 in intraday trade. Aberdeen Asset Management Asia sold 56.26 lakh shares or 0.24% equity in the IT major in open market transaction on 7 April 2016. Aberdeen Asset Management Asia now holds 7.01 crore shares or 3.04% stake in Infosys. The disclosure was made after market hours on Friday, 8 April 2016.

Infosys will announce its Q4 March 2016 result on Friday, 15 April 2016, when the stock market is closed for a holiday.

Auto stocks rose. TVS Motor Company (up 0.67%), Hero MotoCorp (up 1.93%), Eicher Motors (up 0.95%), Bajaj Auto (up 1.86%), Maruti Suzuki India (up 1.45%) and Ashok Leyland (up 2.52%) edged higher. Mahindra & Mahindra declined 0.04%.

Tata Motors rose 3.67% at Rs 385.85 after the company said that its global wholesales including Jaguar Land Rover (JLR) rose 11% to 1.18 lakh units in March 2016 over March 2015. The company announced the monthly global wholesale volume data during market hours today, 11 April 2016.

Lupin declined 1.51% to Rs 1,517.50 on profit taking. The stock had gained 5.43% in the preceding four trading sessions to settle at Rs 1,540.75 on Friday, 8 April 2016, from its close of Rs 1,461.30 on 4 April 2016. Lupin and Novartis Healthcare (NHPL) have entered into a co-marketing agreement to promote Novartis’ Indacaterol/Glycopyrronium 110mcg/50mcg inhaler, used for a treatment of chronic obstructive pulmonary disease (COPD) under the brand name of Loftair in India. Lupin would be using its own specialty field force to promote Loftair inhaler. NHPL will continue to market Indacaterol/Glycopyrronium 110mcg/50mcg inhaler under its brand name Sequadra through its own sales force. The announcement was made during market hours today, 11 April 2016.

The Sensex snapped a two-day losing streak. The Sensex had fallen 226.79 points or 0.91% in the preceding two trading sessions to settle at 24,673.84 on Friday, 8 April 2016, from its close of 24,900.63 on 6 April 2016. The Sensex has fallen 319.70 points or 1.26% in this month so far (till 11 April 2016). The Sensex has fallen 1,095.38 points or 4.19% in calendar year 2016 so far (till 11 April 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the Sensex has risen 2,527.55 points or 11.23%. The Sensex is off 4,072.45 points or 13.99% from a 52-week high of 29,094.61 hit on 15 April 2015. The Sensex is off 5,002.58 points or 16.66% from a record high of 30,024.74 hit on 4 March 2015.