Sensex gains 91 points, logs longest winning streak since Nov 2017; Infosys Q4 earnings eyed
Sensex gains 91 points, logs longest winning streak since Nov 2017; Infosys Q4 earnings eyed
Sensex today: The benchmark indices settled off day's high, but gained for a seventh straight session, their longest winning streak since November 2017, on the back of gains in index heavyweights such as Reliance Industries and Adani Ports, while positive trend in global markets also contributed to the gains. The Sensex ended at 34,192, up 91.52 points, while the broader Nifty50 closed at 10,480, up 21.95 points.
Meanwhile, investors await the March quarter results of Infosys. Q4FY18 is seasonally weak for Infosys but analysts expect growth in earnings as compared to the previous year. The IT major is expected to report 1.4 per cent growth in revenues at Rs 18,040 crore as compared to Rs 17,794 crore reported in the previous quarter.
Investors also cheered the positive macro data released yesterday. Industrial output as measured by the index of industrial production (IIP) rose 7.1 per cent in February while the consumer price index (CPI) showed retail inflation at 4.28 per cent in March, the fourth successive month of decline. IIP growth was 7.4 per cent in January while consumer inflation stood at 4.44 per cent in February.
Overseas, World stocks and commodities rose on Friday, with stocks set to post their biggest weekly gain in over a month as investors seemed to shrug off the uncertainty over tension in the Middle East and the prospect of a global trade war.
Global stock markets have had a whipsaw week, largely fuelled by US President Donald Trump’s tendency to change his mind over key policy and political issues. The MSCI All-Country World Index, which tracks shares in 47 countries was up nearly 0.1 per cent on the day. It has gained nearly 2 per cent this week, its best weekly showing since March.
European bourses opened positive, with the pan-European STOXX 600 index on track for its third straight week of gains, its longest winning streak since January. The beginnings of European companies’ first-quarter results were largely positive, though misses were badly punished.
Earlier in Asia, MSCI’s broadest index of Asia-Pacific shares outside Japan was up a slim 0.1 per cent, still up about 2 percent on the week. Overall, Friday’s performance in stocks seemed to suggest investors were relieved at apparent suggestions from Trump that a military strike on Syria may not be imminent.
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Market Breadth at Close
Market breadth, indicating the overall health of the market, turned negative. On the BSE, 1,438 stocks slipped, 1,248 stocks gained, while 133 stocks remained unchanged.
Markets at Close
The Sensex ended at 34,192, up 91.52 points, while the broader Nifty50 closed at 10,480, up 21.95 points. In the broader market, the BSE Midcap and the BSE Smallcap indices added 0.4 per cent and 0.2 per cent each.
Axis Bank, Kotak Mahindra Bank merger makes sense; 4 reasons why
Now that Axis Bank's long-time chief Shikha Sharma is all set to step down at the end of 2018, time is ripe for Kotak Mahindra Bank to make a bid for merging Axis Bank with itself. A report by Nomura says this is Kotak's best chance to merge with Axis Bank. "With a very short time left in the CEO’s term at Axis Bank (nine months), RBI’s pressure on Axis Bank’s management/board and with an asset quality clean-up exercise continuing, we believe this is the best opportunity for Kotak Bank to acquire/merge with Axis Bank," Nomura said.
Nomura noted that from Axis Bank’s perspective, there would be limited push- back this time for any merger, given the loss of confidence that the regulator has expressed by not approving the renewal of the CEO’s term, and a vacuum in top management.
Reliance Industries share price rally as it seeks another acquisition
Reliance Industries share price rallied marginally in trade on Friday after the company said it will buy a majority stake in the artificial intelligence (AI)-based education technology provider Indiavidual Learning Pvt Ltd (Embibe) from existing investors over the next three years, and will invest $180 million into the company over the next three years. Reacting to the news, the RIL stock gained 1 per cent to hit an intraday high of Rs 936.90 on the BSE.
Nifty reclaims 10,500
Markets extended gains with the Nifty50 reclaiming its crucial 10,500 mark for first time since March 1, 2018.
Sensex Heatmap at Open
Source: BSE
Indian Hotels, Future Retail among key buy calls for intraday trade
Future Retail (Buy)
Target: Rs 620
Stoploss: Rs 595- Buying in retail stocks
- Buying in future group stocks
Market Breadth
Market breadth, indicating the overall health of the market turned positive. On the BSE, 1,137 stocks gained, 506 stocks declined, while 74 stocks remained unchanged.
Markets at Open
At 9:40 am, the Sensex was trading at 34,207, up 106.44 points, while the broader Nifty50 was ruling at 10,485, 26.75 up points.
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