MUMBAI: Benchmark share indices ended higher on Wednesday led by IT majors while steel stocks rallied on hopes that the government may impose import duty on long and flat steel products.
The 30-share Sensex ended up 151 points at 28,223 and the 50-share Nifty ended up 51 points at 8,568.
Markets continue to trade higher owing to broad based rally on renewed buying interest at attractive valuations. Also, the mood is uplifted after RBI in its monetary policy review yesterday indicated that there is a possibility of further rate cuts in the coming months as it cut the consumer inflation forecast for January-March 2016 by 0.2 percent on the back of declining crude oil prices and a better than expected monsoon.
However, banks are losing sheen after RBI warned banks against under-declaring NPAs and on ever-greening of accounts to prevent them from slipping into default.
At 2:50 pm, the Sensex was at 28234, higher by 162 points and the Nifty was at 8569, up 52 points. The broader markets were outperforming their largecap peers, with the midcap and smallcap indices gaining 0.8 percent and 1.1 percent respectively. The market breadth is strong, with 1,839 advancing stocks as against 1,015 declines.
RUPEE
The rupee has depreciated 8 paise to 63.82 against the dollar due to rise in the dollar against other currencies overseas helped by a possible US Fed rate hike.
SECTORS IN FOCUS
SUGAR
Sugar stocks surged up to 18 percent amid reports that the government was considering bringing in mandatory export rules, which will pave the way for compulsory export of millions of tonnes of the sweetener.
Bannari Amman Sugars , Dwarikesh Sugar, Rajshree Sugars, Balrampur Chini, Bajaj Hindustan, Simbhaoli Sugars, Oudh Sugar Mills and Shree Renuka, Dhampur Sugar Mills, Sakthi Sugars and Triveni Engg gained between 5-15 percent.
STEEL
Shares of steel companies are trading higher between 2-5 percent on the BSE on reports that the finance ministry may hike the import duty on long and flat steel products to curb imports and protect the ailing domestic industry.
Tata Steel, SAIL, JSW Steel, JSPL and Bhushan Steel are trading higher between 1-4 percent on the BSE.
STOCK TRENDS
On the sectoral front, BSE FMCG, IT, Realty, Healthcare, Auto indices are trading higher between 1-4 percent. However, BSE Bankex is losing sheen and is down 0.4 percent.
Bharti Airtel is up 1.3 percent after the company reported a 40.2 percent jump in net profit for the quarter ended June at Rs 1,554 crore. Strong data growth —both in India and Africa —is a key highlight of the quarter. During the quarter, mobile data revenues (consolidated) grew 57 percent year-on-year to Rs 3,459 crore, as data traffic rose by 86.5 percent. Mobile data revenues now account for 14.6 percent of the total revenues compared to 9.6 percent in the corresponding quarter last year.
IT stocks gained momentum on the back of a weakening rupee. Infosys, Wipro and TCS are up 1-2.5 percent.
HDFC is up 0.2 percent. The company plans to raise roughly Rs 5,000 crore through a structured quasi-debt offer to domestic institutions soon.
Tata Steel has incorporated its Long Products Europe (LPE) division into a new standalone wholly-owned subsidiary within its European operations to create a sustainable future. The stock is up 2.5 percent.
Maruti Suzuki, India's biggest car maker, today launched the S-Cross, a premium crossover, priced in the range of Rs 8.34 lakh to Rs 13.74 lakh (Ex-showroom, Delhi). The stock is up 0.6 percent.
Nestle India shares are up 7 percent after a PTI report suggested that a FSSAI-approved laboratory of Central Food Technological Research Institutue (CFTRI) has found Maggi noodles to be in compliance with the country's food safety standards.
Shares of DLF have jumped 7 percent on reports that the company is seeking approval from its board to raise Rs 7,500 crore.
