Sensex rallies over 200 points; Nifty50 reclaims 7,900; ICICI Bank gains 3%

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NEW DELHI: The S&P BSE Sensex rallied over 200 points in morning trade on Thursday led by gains in ICICI Bank, Axis Bank, L&T, SBI, and Asian Paints.

The Nifty50 reclaimed its crucial psychological level of 7,900 supported by gains in consumer durable, capital goods, banks, auto, realty, and metal stocks.

“The minor blip that you are seeing — probably shows consolidation of 200 points on the Nifty50 – shows no real breakout either way. We already had two months of very strong upward trend and the market is not giving away that significantly, which is a good sign. From a short-term perspective, this consolidation should probably be taken positively. I am looking at a breakout of the 8,000 level soon and a May F&O expiry above that level,” said Kunal Bothra, Head Advisory, LKP.

The broader market traded in line with the benchmark indices with the BSE midcap and smallcap indices rising 0.51 and 0.49 per cent, respectively.

The rupee fell 7 paise to 66.63 against the US dollar in early trade on Thursday despite a strong show by most Asian currencies after the US dollar index June future on ICE overnight recorded its first decline in seven sessions.

The domestic currency had closed 11 paise higher at 66.56 in the previous session amid fag-end dollar selling by banks and exporters.
Market @ 9:20

The 30-share index was trading at 25,702, up 105 points or 0.41 per cent. It touched a high of 25,738.59 and a low of 25,676.32 in morning trade.

The Nifty50 was trading at 7,874 up 25 points or 0.32 per cent. It touched a high of 7,887.15 and a low of 7,871.45 in the first 30 minutes of trade.

The S&P BSE Midcap Index was up 0.34 per cent and BSE S&P Smallcap Index was trading 0.51 per cent higher.

ICICI Bank (up 2.3 per cent), Asian Paints (up 1.3 per cent), Axis Bank (up 1.2 per cent), M&M (up 1.1 per cent) were the major Sensex gainers.

HUL (down 0.6 per cent), HDFC Bank (down 0.27 per cent), Dr Reddy’s Laboratories (down 0.15 per cent) and CIL (down 0.02 per cent) were the major Sensex losers.

Five things you must know about today’s market:

Technical charts suggest rangebound trading: Experts believe Nifty50 should trade in a broad range in the coming days. “I still believe the broader range of 7,700-7,980-8,000 remains and within that we got a 90-point range i.e. 7,880-7,890 on the upside and the 7,810-7,800 range on the downside, where two or three important technical pivots are placed on the short-term half-hourly charts. For the time being, wait for that breakout to happen and remain stock-specific. If we get past the 7,890 level, we should head towards the upper end of the range. If we fall below the 7,800-7,810 range, then we should possibly head to retest the 7,700 level,” said Mitesh Thacker of miteshthacker.com.

Asian markets stay negative: Most Asian markets were trading lower this morning. Japan’s benchmark Nikkei traded 0.53 per cent lower at 16,486.26. Other Asian indices, including South Korea’s Kospi (down 0.15 per cent), China’s Shanghai Composite (down 1.06 per cent) and Taiwan’s TWSE (down 0.05 per cent), traded lower.

Earnings to generate stock-specific actions: Stock-specific action is likely on the counters of companies that are scheduled to disclose their quarterly numbers during the day.

On Thursday, Dr Reddy’s Labs, Glenmark, Arvind, Manappuram Finance, Nestle India, MPRL, Polaris Consulting, Zydus Wellness and Vijaya Bank will disclose their quarterly numbers.

As many as 257 companies will report their March quarter earnings through the week. “The earnings have been fairly in line with expectations. We have a top line growth of something like 6 per cent for the broad market and have seen 8-9 per cent growth in net profit. We have also seen margin expansion by about 100 basis points. I think this quarter has not been too bad,” said Sashi Krishnan, Chief Investment Officer, Birla Sun Life Insurance.

US market ended lower on Wednesday: The Dow Jones Industrial Average slumped 217.23 points, or 1.21 per cent, in overnight trade to close at 17,711.12. The S&P500 tanked 19.93 points, or 0.96 per cent, to 2,064.46. The Nasdaq Composite lost 49.19 points, or 1.02 per cent, to 4,760.69.

US stocks were down amid disappointing corporate earnings, while oil prices surged for the second day as data showed that US crude inventories fell unexpectedly last week, a Reuters report said.

Crude oil prices jump: Brent crude futures settled 4.6 per cent higher at $47.60 a barrel. US crude, on the other hand, advanced 3.5 per cent to $46.23 a barrel. Oil prices have recovered some ground after touching 12-year lows earlier in 2016, the Reuters report said.

US crude inventories fell unexpectedly for the first time since March, adding to concerns over supply disruptions in Canada and Nigeria.