Moneycontrol
May 15, 2017 05:25 PM IST | Source: Moneycontrol.com

Sensex, Nifty at fresh closing high post macro data; Tata Steel, Hindalco up 4%

Investors cheered better macro data that raised hopes for rate cut. Even likely early start to the monsoon also lifted sentiment.

Sensex, Nifty at fresh closing high post macro data; Tata Steel, Hindalco up 4%

Moneycontrol News

Equity benchmarks recouped previous session's losses on Monday, ending at fresh record closing high as investors cheered better macro data that raised hopes for a rate cut. Even a likely early start to the monsoon also lifted sentiment.

The 30-share BSE Sensex was up 133.97 points at 30,322.12 and the 50-share NSE Nifty rose 44.50 points to 9,445.40, backed by banks, FMCG, metals and pharma stocks.

"We feel odds are higher that the prevailing uptrend will continue with intermediate corrective phases in index," Jayant Manglik, President, Retail Distribution, Religare Securities said.

Stocks, on the other hand, are trading mixed mainly in response to the earning announcements. So, he suggests continuing with the approach of focusing on stock selection and managing them during volatile times.

The broader markets outperformed benchmarks, with the BSE Midcap index up 1.25 percent and Smallcap up 0.78 percent despite the gap between advances & declines narrowed. About 1497 shares advanced against 1315 declining shares on the exchange.

Meanwhile, retail inflation in April eased to 2.99 percent from 3.81 percent in previous month while March industrial output growth was at 2.7 percent against 1.9 percent in February under new series.

India Meteorological Department, on May 14, said the Southwest Monsoon has covered the Nicobar Islands and the entire south Andaman Sea, three days ahead of its normal onset date. This may be an indication that monsoon may hit Kerala earlier than expected but Meteorological Department Director General KG Ramesh said it was too early to forecast whether the monsoon would hit the Kerala coast ahead of schedule.

The rupee ended at highest closing level since August 10, 2015, up 25 paise at 64.05 against the US dollar.

Nifty Metal gained the most among sectoral indices, up over 2 percent. Hindalco Industries, JSW Steel, Jindal Steel, SAIL and NMDC rallied 2-4 percent.

Tata Steel surged 4 percent ahead of March quarter earnings due on May 16. A CNBC-TV18 poll expects profit at Rs 1,000 crore for the quarter against loss of Rs 3,213 crore in same quarter last year.

Vedanta was up 2 percent after better-than-expected earnings in the quarter ended March 2017. Profit stood at Rs 2,988 crore against loss of Rs 21,103 crore in corresponding quarter of last fiscal while revenue jumped 40.5 percent YoY.

Pharma index rose over a percent. Lupin was up 2.4 percent while Dr Reddy's Labs spiked 3.5 percent on hopes of recovery in US business and early resolution to regulatory concerns.

Among others, ICICI Bank, ITC, Asian Paints, SBI and Maruti Suzuki gained 1-2 percent whereas Infosys, Reliance Industries, Axis Bank, Hero Motocorp and Adani Ports were down 0.5-1 percent.

Idea Cellular share price tanked 7 percent post earnings while Piramal Enterprises was the top midcap gainer, up 10 percent.

On the global front, Asian markets barring Nikkei closed higher despite concerns over trade protectionism during the G7 meeting in Italy and North Korea's latest missile launch at the weekend. European markets were mixed after hitting record highs.
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