Sensex Ends 127 Points Higher Led By Gains In PSU Bank Shares

Sensex rose over 100 points while Nifty closed above its psychological level of 8,550 for the first time in 11 months led by strong gains in PSU banking, capital goods and power stocks. However, gains were capped as investors remained watchful ahead of quarterly corporate results and an expected government announcement on who would take over as the country's next central bank chief.

Meanwhile, on the macro-economic front data on Thursday showed India's wholesale prices rose at a faster-than-expected pace in June on higher food prices.

"There are not many factors left for markets to react to immediately, hence market is taking a breather now and we see some amount of consolidation," said Saurabh Jain, assistant vice president of research at SMC Global Securities.

The Sensex advanced 127 points to close at 27,942 and Nifty jumped 45 points to 8,565.

Banking shares saw good buying interest in trades today. Rally in banking shares was led by strong gains in PSU bank stocks like Punjab National Bank which advanced 6.76 per cent to close at Rs 133.50. Canara Bank, Bank of India, Federal Bank, Bank of Baroda and Yes Bank also closed 2.2-6 per cent each.

The banking sub-index on the NSE, Bank Nifty advanced 1.3 per cent or 245 points to settle at 18,864.

Cheering the government's move to relax excise duty norms on gold jewellery sales, shares of gold jewellers outperformed the markets today.  

According to the new rules, jewellers with turnover up to Rs 15 crore a year will be exempt from the excise duty. Earlier, the exemption limit was for jewellers with turnover up to Rs 12 crore.

3:11 p.m.: Stock markets continue to trade firmly higher. Sensex advances 133 points to 27,949 and Nifty rises 46 points to 8,565.

2:20 p.m.: Max India shares got listed today at Rs 180 on the NSE and Rs 195 on the BSE. However, after the listing, shares fell 5 per cent to their lower circuit limit to hit Rs 171 on the NSE and Rs 185 on the BSE. 

Max India manages investments in Max Healthcare, Max Bupa and Antara Senior Living. (Read)

1:40 p.m.: Banking stocks continue to witness strong buying interest. The Bank Nifty advances 1.2 per cent or 217 points to 18,836; Punjab National Bank was the top gainer from this space, up 7 per cent to Rs 134. Canara Bank, Bank of India, Bank of Baroda, Federal Bank and ICICI Bank were also among the gainers, up 2.3-6.6 per cent each.

1:28 p.m.: The market breadth remains positive as 1,525 stocks advance while 1,001 decline.

1:22 p.m.: Investors in Shilpi Cable Technologies have reaped big return in the past one year. Shares of the company, which manufactures wires and cables for telecom and automotive industries, have quadrupled in value over the past one year. 

Shares of Delhi-based Shilpi Cable Technologies on July 11 hit a fresh 52-week high of Rs 185. (Read)

12:34 p.m.: Buying visible across the sectors barring a few healthcare stocks. Capital goods, banking, auto and metal indices advance 0.4-0.9 per cent each.

12:21 p.m.: Cheering the government's move to relax excise duty norms on gold jewellery sales, shares of gold jewellers outperformed the markets today. 

According to the new rules, jewellers with turnover up to Rs 15 crore a year will be exempt from the excise duty. Earlier, the exemption limit was for jewellers with turnover up to Rs 12 crore. (Read)

12:04 p.m.: Stock markets edges higher on buying in banking shares. The Sensex advances 50 points to 27,865 and Nifty jumps 17 points to 8,540.

11:56 a.m.: Banking stocks were witnessing buying interest. The Bank Nifty was up 0.45 per cent; Punjab National Bank was the top gainer from this space, up 5 per cent to Rs 131.30. Bank of India, Canara Bank, Bank of Baroda, Federal Bank, State Bank of India and IndusInd Bank were also among the gainers, up 1.2-3.66 per cent each.

11:18 a.m.: Tata Consultancy Services, which snapped its six-quarter streak of earnings miss in April, will be the first major IT company to report June quarter earnings. TCS, India's biggest IT services outsourcer, is likely to report numbers post market hours today. (Read)

10:48 a.m.: Market breadth was positive as 1,214 stocks were advancing while 880 were declining.

10:45 a.m.: Pharma stocks were witnessing selling pressure. The BSE Healthcare index was down 0.53 per cent; Sun Pharma, Dr Reddy's Labs, Cipla, Apollo Hospitals, Lupin, Biocon and Divis Labs also among the laggards.

10:40 a.m.: Shares of National Aluminium Company Limited (Nalco) surged nearly 6 per cent to hit intraday high of Rs 50.95 after the state-run aluminium producer secured the mining lease of a bauxite mine in Odisha. (Read)

10:30 a.m.: Brokerage IIFL's Sanjeev Bhasin expects the Nifty to correct by 200 points after the sharp run up post Britain's decision to exit the European Union last month. Mr Bhasin, who has been bullish on stock markets, advised investors to book profits and get into cash. (Read)

10:06 a.m.: Citi has initiated coverage on NBCC with buy for target price of Rs 300/share. It says NBCC has an asset-light model and NBCC is uniquely placed with attractive financials. It expects 38 per cent compounded annual groth in earnings per share over FY16-18. (Click here for more brokerage calls)

9:59 a.m.: Small-cap stocks were outperforming the benchmark indices which were trading on a lacklustre note. The BSE Small-cap index was up 0.5 per cent; PMC Fincorp was the top gainer from the small-cap space, up 12 per cent. Carborundum Universal, SRF Ltd, V-Mart Retail, Orient Paper & Industries, Unitech, Navin Fluorine International and OnMobile Global were also among the gainers, up 5-8.5 per cent each.

9:21 a.m.: Sensex edged lower in opening deals while 50-share Nifty slipped closer to its crucial psychological level of 8,500 amid profit-booking.

As of 9:19 a.m., Sensex traded 7 points lower at 27,808 and Nifty slipped 7 points to 8,512.

In opening deals, selling pressure was visible in select realty, pharma, IT and FMCG shares.

From the Nifty 50 basket of stocks, 28 were advancing while 23 were declining.

Zee Entertainment was the top Nifty loser, down 1.6 per cent to Rs 449. ONGC, Dr Reddy's Labs, Mahindra & Mahindra, Sun Pharma, Hero MotoCorp, HDFC and Wipro were also among the laggards.

On the other hand, GAIL India was the top Nifty gainer, up 1.5 per cent to Rs 398. Power Grid, BPCL, UltraTech Cement and Coal India were also among gainers.

The broader markets were outperforming the benchmark indices. The BSE mid-cap and small-cap indices were up 0.24 and 0.36 per cent each.

8:03 a.m.: Sensex and Nifty are set to open on a flat note tracking Nifty futures traded on the Singapore Stock Exchange amid subdued global markets.

The Nifty futures traded on the Singapore Exchange also known as the SGX Nifty was trading flat, down 0.01 per cent or 0.5 points at 8,516.

Meanwhile, Asian shares held near eight-month high on Thursday but traded flat as investors bet the Bank of England will cut rates in a pre-emptive strike to ward off a recession following the country's decision to leave the European Union.

Hong Kong's Hang Seng was down 0.05 per cent and South Korea's KOSPI was down 0.12 per cent. But Japan's Nikkei advanced 0.72 per cent.

Overnight, major U.S. stock indexes gave back gains on Wednesday after hitting record intraday highs and European shares slipped after a plunge in oil prices pushed energy stocks lower on both sides of the Atlantic.

Oil prices plummeted more than 4 per cent, crimping the record-breaking rally in U.S. shares, while European shares dipped after four straight days of gains. Investors also awaited second-quarter corporate earnings.

The Dow Jones industrial average closed 0.13 per cent or 24 points higher at 18,372. The S&P 500 closed 0.01 per cent higher at 2,15 and the Nasdaq Composite closed 0.34 per cent lower at 5,006.

Back home, foreign institutional investors bought shares worth Rs 290 crore while domestic institutional investors sold shares worth Rs 655 crore on Wednesday.

TCS shares will be in focus today as the company will come out with its first quarter numbers later in the day. 

Analysts polled by NDTV Profit expect sales to come in at Rs 29,251 crore compared with Rs 28,448 crore during the previous quarter. While net profit is expected to come in at Rs 6,063 crore compared with Rs 6,413 crore during the previous quarter.

(With inputs from Reuters)