Sensex spikes 416 points ahead of Q4 GDP data; Adani Ports, HDFC Bank top gainers
Vinod Nair, Head of Research, Geojit Financial Services
Market witnessed strong bounce back led by positive global cues and fall in oil prices from 80$/bbl to 76$/bbl which has mildly improved sentiment. Additionally investors are expecting a strong Q4 GDP growth which is adding some positive vibes. Banks led from the front while midcaps underperformed due to concern on valuation.
Investors in Manpasand Beverages are in trouble as the FMCG firm's share price hit the lower circuit for the third session in a row on Tuesday. The stock has been under pressure ever since the company’s auditor Deloitte Haskins & Sells refused to audit the company’s March quarter results, as the company, it said, failed to provide enough details on its financials.
With a 10 per cent fall today, the Manpasand Beverages scrip has plunged 49.87 per cent to Rs 223.50 in the last seven sessions. The sharp plunge on the counter is reminiscent of the crash seen in shares of Vakrangee earlier this month. Vakrangee auditor Price Waterhouse & Co too resigned 'in the absence of adequate and relevant information and explanations'. Vakrangee share price has fallen a whopping 92 per cent so far this year.
HDFC Bank share price rallied nearly 4 per cent on Thursday on BSE after the bank's shares listed on New York Stock Exchange spiked a whopping 8 per cent overnight. The HDFC Bank American Depository Receipt (ADR) advanced as much as 8.6 per cent to $105.17 on NYSE.
The gains came after Securities and Exchange Board of India (SEBI) announced that it is discontinuing with the institutional trading series (6 lakh series) with effect from 1 July 2018 in the equity segment. The fact that the local window for FII buying will open on the same day, it will trigger huge demand for HDFC Bank stock in the domestic market tomorrow.
Nestle India (Buy)
Target: Rs 9850
Stoploss: Rs 9400
- 80% cash delivery in stock
- The stock is trading around key support level
Wall Street Overnight
US stocks ended higher on Wednesday, and the S&P 500 and Dow registered their biggest daily percentage gains since May 4, on signs of easing political turmoil in Italy and as a surge in oil prices boosted energy stocks.
The Dow Jones Industrial Average rose 306.33 points, or 1.26 percent, to 24,667.78, the S&P 500 .SPX gained 34.15 points, or 1.27 percent, to 2,724.01, and the Nasdaq Composite added 65.86 points, or 0.89 percent, to 7,462.45.
Markets on Wednesday
Benchmark indices closed lower for the second straight day today as political uncertainty in Italy and flaring up of trade tensions between the US and China triggered a global sell-off.
Moody's cutting India's 2018 GDP growth forecast added to the sombre mood, with no let-up in selling by participants ahead of May derivatives expiry, brokers said.
The BSE Sensex slipped over 43 points in volatile trade to end at 34,906.11, while the 50-share Nifty shed 18.95 points to finish at 10,614.35.