Oil-to-telecom conglomerate RIL alone contributed 431 points to Sensex’s gains as it jumped 7.10 per cent on reported that the company was close to sealing a deal with Future Group for acquiring their retail business.
Shutterstock.comYES Bank climbed 2 per cent after the rating agency Moody's Investors Service upgraded the private lender's long-term foreign-currency issuer rating to B3 from Caa1.
Mumbai: Benchmark equity indices snapped four-session losing streak and jumped over 2 per cent on Tuesday, helped by strong gains in index heavyweights Reliance Industries (RIL) and HDFC Bank. Recovery in Indian exports, upbeat Asian markets and promising US manufacturing data also helped the sentiment.
Today's surge added Rs 2.08 lakh to investor wealth in terms of market capitalization of the BSE-listed companies.
Sensex jumped 748 points to close at 37,688 while peer Nifty climbed 211 points to end at 11,103.
“Indian benchmark indices ended the day with gains with positivity emerging post the RBI decision to approve the new CEO for HDFC Bank. Private banks and RIL supported the gains in the benchmark indices. Global cues were also mostly positive, and aided the markets, following better US manufacturing data,” said Vinod Nair, head of research at Geojit Financial Services.
“With Indian exports reaching almost the same level on a YoY basis, economic activities are showing signs of revival which offset concerns about the increasing virus infections and the uncertainties that this brings across,” he added.
Nair said that while the markets were looking to consolidate, the current liquidity can ensure that any corrections will be bought into.
The country's exports in July have reached almost the level of the corresponding month last year, Commerce and Industry Minister Piyush Goyal said on Tuesday, adding that several indicators are reflecting that the economic activities are reviving in the country.
Improving sales or auto companies in July from a month ago led to hopes that the much-needed recovery was closer than earlier expectations. Maruti Suzuki, India’s largest carmaker, surged over 3 per cent to Rs 6,360. HeroMoto also spiked nearly 3 per cent to Rs 2,707.
Oil-to-telecom conglomerate RIL contributed 431 points to Sensex’s gains as it jumped 7.10 per cent on reported that the company was close to sealing a deal with Future Group for acquiring their retail business. The stock has been trading on a volatile note post its annual general meeting on July 15. The scrip has surged nearly 150 per cent from its March lows.
Top private lender HDFC Bank celebrated the appointment of new CEO Sashidhar Jagdishan and rose 3.94 per cent to end at Rs 1,041.40 per share. The bank’s succession plan was keenly awaited. The private sector lender informed in an exchange filing that it has received the Reserve Bank of India’s (RBI) approval for his appointment.
The bulls were back on the forefront, with advancing shares beating the declining ones in the ratio of 1.8:1 on the BSE. The broader market underperformed, with BSE mid and smallcap indices rising 1.02 per cent and 1.23 per cent, respectively.
BSE Energy index was the top sectoral gainer and jumped 5.61 per cent, followed by BSE Finance index which climbed 2.09 per cent.
Only BSE IT and BSE Teck indices closed in the red. They shed 0.73 per cent and 0.45 per cent, respectively.
YES Bank climbed 2 per cent after the rating agency Moody's Investors Service upgraded the private lender's long-term foreign-currency issuer rating to B3 from Caa1.
Wockhardt surged 10 per cent after the biotechnology major said it has entered into an agreement with the UK government to fill-finish Covid-19 vaccines.
Kansai Nerolac dropped 2.92 per cent as the paint maker reported a 79.42 per cent decline in consolidated net profit at Rs 29.64 crore for the first quarter ended June .
Foreign institutional investors (FIIs) pumped in a net of $1.1 billion or Rs 8,590 crore in Indian shares in July, while domestic institutional investors (DIIs) pulled out a net of Rs 10,143 crore from the asset class in the month.
Globally, Asian shares advanced thanks to strong US manufacturing data and upbeat tech stocks, though broader worries about the coronavirus and global economy saw some markets trim early gains, Reuters reported.
Markets at a glance
Sensex jumps 2.03% or 748 to close at 37,688
Nifty rises 1.94% or 211 points to close at 11,103
Rs 2.08 lakh crore added to investors’ wealth
19 of 30 Sensex stocks close higher
RIL top Sensex gainer, jumps 7.1%
RIL contributes over half of benchmark’s gains
HDFC Bank up 3.94% on new CEO appointment
Top Sensex losers: TechM down 2.75%, IndusInd 2.11%
Market breadth positive; advance-decline ratio 1.8:1
Minnows underperform; BSE Midcap up 1.02%, smallcap 1.23%
BSE Energy top gainer, up 5.60%; RIL leads
BSE Finance up 2.09%; Dolat Investments up 14.22%, MCX 8.78%
YES Bank up 2% as Moody’s upgrades rating
Wockhardt jumps 10% on Covid vaccine agreement with UK govt
Kansai Nerolac down 2.92% as Q1 net drops 79%
What to watch out for
The Monetary Policy Committee (MPC), headed by RBI Governor, is scheduled to meet for three days beginning August 4 and will announce its decision on August 6.
The coronavirus cases in India are yet to peak and are witnessing a record surge each day and are a major cause of worry.
The movement of global markets will be closely watched as the domestic market tends to follow suit.
Progress on a domestic as well as overseas vaccine for Covid-19 treatment will be closely watched.
The ongoing June quarter corporate earnings season is providing a better picture of the impact caused by the Covid19-induced lockdown. More than the numbers for the quarter, the commentary and the outlook have been the moniterables.
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