Axis Bank share price surges 5% even as Sensex gains 91 points; Nifty reclaims 10,400
The benchmark indices rose for a fourth straight session on Tuesday, tracking gains in Asian markets as conciliatory-sounding comments from Chinese President Xi Jinping helped soothe investor concerns about an escalating US-China trade spat. The Sensex ended at 33,880, up 91.71 points, while the broader Nifty50 closed at 10,402, up 22.90 points.
In the broader market, the BSE Midcap added 0.2 per cent, but the BSE Smallcap remained unchanged. Market breadth, indicating the overall health of the market turned negative. On the BSE, 1,290 stocks rallied, 1,417 stocks declined, while 133 remained unchanged. Axis Bank rallied 5 per cent and was the top Sensex gainer after bank's board curtailed the fourth term of its CEO and Managing Director Shikha Sharma to seven months following an unusual request from her that she be relieved on December 2018, 29 months ahead of the scheduled term. The board's decision come amidst RBI raising questions over her re-appointment for the fourth term as MD and CEO of the third largest private sector lender in the wake of mounting non-performing assets (NPAs).
Overseas, Asian shares recovered from early falls to rise as much as 0.9 per cent after Xi said China will take measures to sharply widen market access for foreign investors, raise the foreign ownership limit in the automobile sector and protect intellectual property of foreign firms.
European markets followed their Asian counterparts at the open with solid gains. Germany’s DAX rose 1 per cent, France’s CAC 40 0.57 per cent and Britain FTSE 100 0.41 per cent. The US S&P 500 E-mini futures gained 0.93 per cent. The MSCI World Index rose 0.25 per cent.
Global financial markets have been rattled over the past few weeks on fears that the tit-for-tat US-China tariffs will explode into a full-scale trade war in a blow to global growth.
On Monday, the key equity indices rose in line with international peers after signs emerged over easing of recent global trade protectionist measures. Index-wise, the wider Nifty50 of the National Stock Exchange (NSE) ended the day's trade at 10,379.35 points -- up 47.75 points or 0.46 per cent from its previous close.
In terms of investments, provisional data with the exchanges showed that foreign institutional investors sold scrips worth Rs 1,300.93 crore, while the domestic institutional investors purchased stocks worth Rs 359.35 crore.
The benchmark indices rose for a fourth straight session on Tuesday, tracking gains in Asian markets as conciliatory-sounding comments from Chinese President Xi Jinping helped soothe investor concerns about an escalating US-China trade spat. The Sensex ended at 33,880, up 91.71 points, while the broader Nifty50 closed at 10,402, up 22.90 points.
In the broader market, the BSE Midcap added 0.2 per cent, but the BSE Smallcap remained unchanged. Market breadth, indicating the overall health of the market turned negative. On the BSE, 1,290 stocks rallied, 1,417 stocks declined, while 133 remained unchanged. Axis Bank rallied 5 per cent and was the top Sensex gainer after bank's board curtailed the fourth term of its CEO and Managing Director Shikha Sharma to seven months following an unusual request from her that she be relieved on December 2018, 29 months ahead of the scheduled term. The board's decision come amidst RBI raising questions over her re-appointment for the fourth term as MD and CEO of the third largest private sector lender in the wake of mounting non-performing assets (NPAs).
Overseas, Asian shares recovered from early falls to rise as much as 0.9 per cent after Xi said China will take measures to sharply widen market access for foreign investors, raise the foreign ownership limit in the automobile sector and protect intellectual property of foreign firms.
European markets followed their Asian counterparts at the open with solid gains. Germany’s DAX rose 1 per cent, France’s CAC 40 0.57 per cent and Britain FTSE 100 0.41 per cent. The US S&P 500 E-mini futures gained 0.93 per cent. The MSCI World Index rose 0.25 per cent.
Global financial markets have been rattled over the past few weeks on fears that the tit-for-tat US-China tariffs will explode into a full-scale trade war in a blow to global growth.
On Monday, the key equity indices rose in line with international peers after signs emerged over easing of recent global trade protectionist measures. Index-wise, the wider Nifty50 of the National Stock Exchange (NSE) ended the day's trade at 10,379.35 points -- up 47.75 points or 0.46 per cent from its previous close.
In terms of investments, provisional data with the exchanges showed that foreign institutional investors sold scrips worth Rs 1,300.93 crore, while the domestic institutional investors purchased stocks worth Rs 359.35 crore.
Latest Updates
Anand Shah, Deputy CEO & Head of Investments, BNP Paribas Mutual Fund
Stock markets in Asia, including those in India, opened the day on a buoyant note. Positive investor sentiment was given a fillip after comments from Chinese President Xi Jinping on measures planned to further open up the Chinese economy assuaged fears of an escalating US-China trade row. While benchmark indices in India opened higher and hit fresh intraday high in morning trade, they subsequently succumbed to profit booking at higher levels to finally close the day with marginal gains. The auto and healthcare indices on the National stock Exchange (NSE) closed the day in the red, while the metals and banking indices witnessed sharp gains.
Sensex Heatmap at Close
Source: BSE
Markets at Close
The Sensex ended at 33,880, up 91.71 points, while the broader Nifty50 closed at 10,402, up 22.90 points.
Axis Bank spikes 6%
Axis Bank extended gains in the last leg of trade on reports of Shikha Sharma requesting to cut short her tenure.
Earnings recovery imminent, says Motilal Oswal Securities
As we step into FY19, the clamor for an earnings recovery has become louder. This is particularly because the last three years were characterized by a muted earnings performance due to macro disruptions and several policy changes pertaining to asset quality in the banking sector. Although we expect Nifty earnings to grow by a decent 11% in FY18, it is much below our FY18-beginning estimate of +17% – this can be mainly attributed to the drag from corporate banks (ICICI Bank, Axis Bank and SBI, which together accounted for 62% of the cut in Nifty PAT estimate in a span of a year.
FAST MONEY: Wipro, HDFC, Axis Bank among top ten intraday trading calls
HDFC (Buy)
Target: Rs 1890
Stoploss: Rs 1820
- HDFC upped lending rates by up to 0.20 per cent
- New rates effective from April 1
- PLR increased for the first time since 2013
Axis Bank share price soars 4% after Shikha Sharma exit announcement
Axis Bank share price rallied over 4 per cent on Tuesday after the private sector bank's board curtailed the fourth term of its CEO and Managing Director Shikha Sharma to seven months. This follows an unusual request from her that she be relieved on December 2018, 29 months ahead of the scheduled term. Reacting to the news, the stock gained as much as 4.26 per cent to Rs 540 on the BSE. The stock was the top gainer on Sensex, Nifty and Bank Nifty. Analysts at IDFC Securities believes the change in top management is positive for Axis Bank in the long run, but it doesn't see any short-term benefit. "We believe change in top management is positive in the long run as the new CEO would join at a time when most of the clean-up is done and can focus on reviving earnings growth. But it would lead to short term pressure on asset quality and growth as the team under the existing leadership will likely frontload slippages over Q4FY18-Q3FY19," said IDFC Securities in a research note.
Angel Broking on Nifty
The Nifty remained in a positive territory throughout the day; however, the day clearly belongs to the individual stocks. We did see stock specific moves in both directions, which we believe is likely to continue as index is now approaching the important resistance zone of 10400 – 10450. As a momentum trader, one should strictly adopt a stock centric approach as index enters this territory. On the downside, 10350 – 10322 would be seen as important support levels.
Metal stocks on fire
The Nifty Metal index added over 2 per cent and was the best performing sectoral gainer, led by gains in Hindalco, Nalco, NMDC, Vedanta and SAIL, which advanced in the range of 2 per cent to 4 per cent.
All about today'd trading set-up
Sensex Heatmap at Open
Source: BSE
Nifty crosses 10,400 at open
At 9:20 am, the Sensex was trading at 33,899, up 111.35 points, while the broader Nifty50 was ruling at 10,410, up 31 points.
Asian markets
Asian shares edged lower on Tuesday as Wall Street retreated from its highs after the FBI raided the offices of U.S. President Donald Trump’s long time lawyer, dampening risk appetite already under strain from an escalating U.S.-China trade spat.
MSCI's broadest index of Asia-Pacific shares outside Japan eased 0.2 percent. South Korea's KOSPI fell 0.8 percent, while Japan's Nikkei shed 0.4 percent. The sharp pull-back on Wall Street late in Monday’s trading seems to be dampening market sentiment, said Hirofumi Suzuki, an economist for Sumitomo Mitsui Banking Corporation in Singapore.
Rupee at Open
Rupee opens at 64.87/$ against Monday’s close of 65.02/$
Markets on Monday
Markets finished higher for the third straight session today, with benchmark Sensex rising about 162 points to close at almost four-week high of 33,788.54 on continued buying by domestic institutional investors (DIIs). Besides, investor sentiment got a further boost amid optimism ahead of the earnings season, which will begin later this week with Infosys' January-March results on Friday. Brokers said a firm trend in other Asian markets and a higher opening of European shares on easing concerns about a sharp rise in US interest rates also helped in adding to positive cues.