Market cheers stable government at the Centre along with GST rate cuts announced over the weekend.
A sharp surge in FMCG, infrastructure, metals as well as PSU banks ensured that the market had no encounter with any sorts of Monday blues. The Sensex managed to close at record closing high and managed to surpass its record intraday high of 36,747 which it had achieved earlier.
Meanwhile, the Nifty has managed to end at over 6-month high, a level that was last seen around the Union Budget in 2018.
The day began on a subdued note as indices opened flat, tracking tepid global cues. But a surge in FMCG stocks, pushed by GST rate cut that was announced over the weekend, helped the market trade somewhat higher. There was rangebound movement seen through the day. However, a surge in other sectors in the last hour helped them to close the day on a strong note.
The 50-share index is currently 100 points away from record high of 11,171.55, while the Nifty Bank managed to hold 27,000.
The Sensex is up 222.23 points or 0.61% at 36718.60, while the Nifty is up 74.60 points or 0.68% at 11084.80. The market breadth is positive as 1533 shares advanced, against a decline of 1061 shares, while 180 shares are unchanged.
All sectoral indices, barring energy and IT, ended the day in the green. In the broader markets space, midcaps ended over a percent higher, a huge gain from the negative opening it had seen during the initial part of the session.
Among stocks, ITC, Vedanta and UPL were the top gainers, while Hero MotoCorp and Bajaj Auto lost the most.
“Stock markets in India started the day and the week on an upbeat note as stocks edged higher in early trade boosted by the Narendra Modi government winning the no-confidence motion in the Lok Sabha on Friday, 20 July 2018. Following a 12-hour debate in the Lower House, in a 451-member House, 126 members voted in favour of the motion while 325 votes went against it. Subsequently, market participants gave the equity markets a vote of confidence as well and took to buying equities today. Both the benchmark Sensex and the Nifty finally closed the day with gains of over 0.50%. Barring the IT index, all other sectoral indices on the National Stock Exchange (NSE) closed the day in the positive zone,” Abhijeet Dey, Senior Fund Manager – Equities, BNP Paribas Mutual Fund
Stocks in news:
Share price of consumer durable stocks were trading higher in early trade on Monday on the back Goods and Services Tax (GST) Council decision to slash rates on a host of items in its Saturday meeting.
Share including Voltas, Bajaj Electricals, Symphony, Whirlpool, Havells, Kensai Neroloc, Asian Paints and Berger Paints rose up to 9%.
Shares of South Indian Bank plunged 17.5 percent as investors turned wary of a fall in its net profit. The Kerala-based South Indian Bank declared a net profit of Rs 23.04 crores for the first quarter of the financial year 2018-19 as against Rs 101.47 crore during the corresponding period last year.L&T Finance Holdings share price rallied 10 percent after it reported solid earnings growth in June quarter, though change in accounting method impacted asset quality. Consolidated profit during the quarter grew by 71.3 percent year-on-year to Rs 538 crore
and net interest income increased 51.2 percent to Rs 1,052 crore.
Wipro slipped 2.4 percent after India's third largest IT services firm signaled a flattish guidance for the next quarter. Wipro expects revenue from IT Services business to be in the range of $2,009 million to $2,049 million for July-September quarter.Havells India share price climbed 9.1 percent to hit a record high of Rs 614.70 after solid earnings growth in June quarter. The fast moving electrical equipment maker posted a 73.3 percent YoY rise in its standalone net profit to Rs 210.4 crore for the first
quarter beating estimates, on the back of a 39.5 percent rise in total income.
Shares of agrochemicals company UPL rallied nearly 15 percent after it announced acquisition of Arysta LifeScience Inc and its subsidiaries in a $4.2 billion all-cash deal.
Markets in Europe have begun the day negatively on the back of tepid global cues. The Stoxx 600 was off by 0.35 percent.Meanwhile, in Asia, stocks closed mixed on the back of strengthening of yen after dollar dropped post US President Trump’s comments. The Nikkei 225 dropped 1.33 percent, or 300.89 points, to close at 22,396.99.