Closing bell: Sensex, Nifty scale over 1%; Reliance Industries, Aban Offshore, Hindustan Zinc, SAIL gain
On account of ease in US-China trade standoff and heavy buying in all major indices, the Indian bourses rose over 1 per cent on Wednesday intraday trade session. The BSE Sensex scaled 403 points to 35,756 while 50-stock Nifty rose 131 points to 10,735 levels. Metals, oil & gas, basic material infrastructure stocks were the major gainers in today's rally at the Dalal Street. Metal indices added more than 3 per cent from its previous close while oil & gas, basic material and inra stocks gained by 2.39 per cent, 2.38 per cent and 2.32 per cent respectively.
Speaking about the market outlook SEBI registered technical equity analyst Simi Bhaumik told Zee Business Online, "The market is range bound and is trading in the range of 10,500 to 10,950. further trends would be clear when either side of the range is broken."
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Sensex rise over 400 points, Nifty scales 131 points
On account of ease in US-China trade standoff and heavy buying in all major indices, the Indian bourses rose over 1 per cent on Wednesday intraday trade session. The BSe Sensex scaled 403 points to 35,756 while 50-stock Nifty rose 131 points to 10,735 levels. Metals, oil & gas, basic material infrastructure stocks were the major gainers in today's rally at the Dalal Street. Metal indices added more than 3 per cent from its previous close while oil & gas, basic material and inra stocks gained by 2.39 per cent, 2.38 per cent and 2.32 per cent respectively.
BSE PSU gains in Dalal Street rally
The BSE PSU index went northward by near 2 per cent in Wednesday intraday trade. The PSU major Allahabad Bank skyrocketed by more than 5.5 per cent, Andhra Bank scrip jump by more than 2.5 per cent, Balmer Lawrie & Company Ltd went up by near 1.5 per cent, Bharat Electronics rose by near 2 per cent, shares of the Central Bank of India rose by 3.84 per cent, Corporation Bank counter went up by more than 3 per cent, Dena Bank stock surged by near 1.5 per cent, GIC counter edged higher by around 1.5 per cent, HPCL counter jump by more than 3 per cent, IDBI Bank Ltd shares went up by near 2.8 per cent while NLC India Ltd rose by near 6.75 per cent.
Infra index continue to gain momentum
After gaining over 1 per cent in the early intraday trade, the BSE infra index further gained momentum and consolidated its gains beyond 2 per cent. Infra major Aban Offshore Ltd gained 3.2 per cent, shares of Adani Ports & Special Economic Zone scaled 4.5 per cent, Ashoka Buildcon stock went northward by near 3 per cent, Bharti Airtel counter rose by near 1.9 per cent, PSU major GAIL (India) rise by more than 3 per cent, NTPC counter rose by more than 2.5 per cent, Power Grid wend upward by more than 1.5 per cent while PFC counter edged higher by near 1.1 per cent.
Metal stocks extend its early morning rally
After gaining over 1 per cent in the early intraday trade, the BSE Metal index further gained momentum and consolidated its gains beyond 2.5 per cent. Metal major Jindal Steel & Power Ltd scaled over 6 per cent, shares of Steel Authority of India (SAIL) Ltd went up by more than 3.5 per cent, Tata Steel counters rose by more than 3.25 per cent, Vedanta Ltd stocks surged over 4.25 per cent while Hindalco Industries counter had a bull run of near 3 per cent.
Sensex, Nifty retains early gains
On account of ease in Sino-US trade standoff as both sides seem committed towards the scheduled March 1 meet, Indian indices jumped more than half a per cent on Wednesday. The BSE Sensex added 265 points to 35,624 levels while the 50-stock Nifty scaled 82 points to 10,687 levels.
Oil and Gas stock surges
The BSE Oil and Gas index surged over 1 per cent in Wednesday intraday trade. Oil and Gas major Bharat Petroleum Corporation Ltd. added 1.3 per cent, shares of Castrol India went up by around 1.05 per cent, GAIL (India) Ltd stock rose near 1.8 per cent, Hindustan Petroleum Corporation shares scaled around 1.6 per cent, Indian Oil Corporation Ltd scrip went northward by around 0.9 per cent, ONGC stocks rose near 1.2 per cent while Reliance Industries counter went up by more than half a point.
BSE Basic Material stocks follow metal shares
Following the metal index BSE Basic Material index scaled near 1.6 per cent. Index major ACC stock rose by near 1 per cent, Agrawal Industries Corp stock jumped over 3 per cent, Bhansali Engineering Polymers Ltd. added near 1 per cent, Century Textiles & Industries Ltd. went up by more than 1.5 per cent, Deepak Fertilisers & Petrochemicals Corporation Ltd. shares scaled by more than 3.5 per cent, shares of Excel Industries Ltd. rose by 2.86 per cent while Hindalco Industries Ltd. counter rose by more than 2 per cent. Shares of Hindustan Zinc and Hindustan Copper rose by 1.6 and 1.25 per cent respectively.
Metal stocks scale in Dalal Street rally
The BSE Metal index rose around 1.74 per cent on Wednesday early morning trade. Metal major Steel Authority of India Ltd or SAIL added 3.36 per cent from its previous close, Tata Steel scale more than 2.2 per cent while Hindalco, Jindal Steel, and Vedanta added more than 2.25 per cent from Tuesday close.
Buy Ambuja Cement for 21% gains, advises Elara Securities
Ambuja Cements reported an EBITDA of Rs 4.0bn vs our estimates of Rs 4.6bn and Consensus estimates of Rs 5.1bn. Net sales for Q2CY18 rose 6.9% YoY to Rs 28.6bn on higher volume. EBITDA fell by 20.4% YoY on a 480bp margin decline. Due to a 77% YoY increase in other income, the adjusted PAT decline was restricted to 24.3% YoY. Reported PAT increased by 58.8% YoY to Rs 5.4 bn, due to a tax write-back.
On suggestion to the market investors in regard to Ambuja Cement counter Ravi Sodah, Analyst at Elara Securities told, "Fundamentals of the scrip suggests an upside potential for near 21 per cent. An investor can take buy position in the counter for the target of Rs 240/stock levels." Curently, the counter is oscillating around Rs 198/shares.
IndiaNIvesh view on banking stocks
As per the IndiaNivesh research team led by Dharmesh Kant, the market expect two themes to play out for the Indian banking sector in near term: 1) on deposit growth – the requirement varies across banks as they are at varying levels of leverage, but a combination of on-balance sheet liquidity (surplus SLRs), improving term-deposit flow, and market share shifts should support growth in the near term; however, 2) a structural pick-up in systemic loan growth, which seems underway, shall eventually place a premium on the cost of liquidity if deposit growth continues to lag behind.
A] Deposit growth acquires primacy: 1) Private banks’ reliance on non-deposit resources has gone up by an average 10% in the last 10 years, HDFCB and old private banks have been most consistent in funding their loan books through deposits; 2) CASA migration to TD playing out, average CASA ratios can further dip if term deposit curve steepens; 3) historical trends suggest comfortable liquidity scenario in election years; 4) recent reduction in SLR requirements, along with the pick-up in term deposits, should support targeted loan growth for banks in our coverage universe; and 5) they expect term deposits to exhibit an upward pricing bias.
B] Corporate banks de-risking, retail banks adding risk: 1) Turnaround in corporate banks is being driven primarily by reduction in incremental stress and expected chunky recoveries—also a consensus theme; 2) corporate banks have de-risked with blended risk weights declining while those of retail banks having increased in the past decade, RoRWAs however remain stable; 3) retail loans to dominate loan growth theme, including for corporate banks, which have built strong retail franchises even as their corporate balance sheets went through a stress cycle; 4) on tenor, despite banks generally focusing on STLs/WCLs, we find TLs of SCBs have increased as a result of strong NBFC and housing loan financing components.
Energy stocks lead the rally
Leading the rally at Dalal Street, BSE Energy index added 0.9 per cent from its previous close. Energy major Aban Offshore scaled up by more than 5 per cent, Bharat Petroleum shares were up by more than1 per cent, Jindal Drilling and Industries stock scaled more than 10 per cent, ONGC stock rose by 1 per cent while Sensex heavyweight Reliance Industries rose by o.8 per cent.
On account of ease in Sino-US trade standoff as both sides seem committed towards the scheduled March 1 meet, Indian indices jumped more than half a per cent on Wednesday. The BSE Sensex added 195 points to 35,550 levels while the 50-stock Nifty scaled 60 points to 10,663 levels.
Asian stocks rise on strong global sentiments
The Asian bourses rose on the expected ease in Sino-US trade stand-off though talks of extending the March 1 talks is still hovering into the news headlines. Japan's Nikkei rose 0.75 per cent to 21,462 levels, Hang Seng rose 1.17 per cent to 28,565, Shanghai index added 0.07 per cent from its Tuesday close while South Korea's Kospi jumped 1.18 per cent to 2,231 levels.
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