BSE Sensex up 100 pts; ITC hits life high, IT stocks up
The BSE 30-share benchmark Sensex ended a busy day of trade in the green, up 100 points at 19387.50.
The BSE 30-share benchmark Sensex ended a busy day of trade in the green, up 100 points at 19387.50. The action was by and large focused around the stocks that had declared their results today. Positive Asian markets helped the Nifty to close above 5900 mark once again. Chinese and Japanese markets were shut today.
Broking house Religare expects to see some correction in Indian stocks in May due to macroeconomic headwinds. The May selloff is likely despite the satisfactory Jan-March corporate results so far and a possible 25 basis points reduction in interest rates by the RBI on May 3.
Key gainers in the Sensex were HUL, Wipro, Hero Motocorp, Sterlite Industries and ITC, up between 2-7 percent. Laggards included Jindal Steel, Coal India, Sun Pharma, HDFC and Tata Steel, down 1-4 percent.
Largecap IT stocks ended in green on the back of short covering. However, midcap IT stocks disappointed the street mirroring lackluster earnings performance of some of the largcap IT stocks. Hexaware, Polaris and Geometric missed street estimates on the operation front.
Realty stocks also surged in trade today ahead of the RBI credit policy on May 3. Shares of DLF, HDIL, Indiabulls Real Estate and Unitech were up between 1-6 percent.
Auto majors Hero Moto and Maruti Suzuki continued their good run after companies outperformed earnings estimate on Friday.
ITC closed at all-time high after its rival Hindustan Unilever (HUL) posted better-than-expected results despite challenging environment. HUL registered a 14.6 percent year-on-year rise in its net profit to Rs 787 crore. The street was surprised by volume growth of 6 percent in March quarter as against forecast of 5 percent.
The biggest earning shocker of the day so far was Indian Overseas Bank. The bank reported net profit of Rs 58.7 crore, ad drop of close to 90 percent over the previous year figures. The stock closed with 7 percent losses.
Bank of Maharashtra on the other hand ended 20 percent higher over its previous close. The bank’s net profit jumped more than 300 percent to Rs 259 crore in the fourth quarter compared to previous year.
Lanco Infratech announced that the long drawn litigation for a claim of AUD 3.5 billion intiated by Perdamn Chemicals against Griffin Coal (a Lanco subsidiary), Lanco Group and its officers ended in the Supreme Court of West Australia. The development pulled the stock up 11%.