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Benign reaction to UK poll verdict; Sensex, Nifty erase losses to end in green

The S&P BSE Midcap and the S&P BSE Smallcap indices gained 0.3% and 0.5%, respectively

SI Reporter  |  New Delhi 

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The benchmark indices ended marginally higher on Friday tracking mixed trend seen in global as investors reacted benignly to the verdict, which left no single party with a clear claim to power.  

The S&P BSE settled at 31,262, up 48 points, while the broader Nifty50 closed at 9,668, up 21 points. 

In the broader market, the S&P BSE Midcap and the S&P BSE Smallcap indices gained 0.3% and 0.5%, respectively.   

The breadth, indicating the overall health of the market, was positive. On the BSE, 1,380 shares rose and 1,289 shares fell. A total of 187 shares were unchanged.

"The market bounced back after a subdued momentum during the day as the verdict of UK election has not created any impact among the emerging (EMs). On the other hand, investors are a bit cautious given the market’s strong performance in the last one year compared to the tepid results. Some are under profit-booking mode and waiting for some correction to come back to the market. Also, investors are shifting their focus to the events lined up for the next week," said Vinod Nair, Head of Research, Geojit Financial Services.

Buzzing stocks

India surpassed information technology (IT) major and state-owned oil exploration & production company Oil and Natural Gas Corporation (ONGC) in overall market capitalization (market-cap) ranking after a sharp rally in automobiles giant share price. The stock was the top gainer, adding over 3% to Rs 7,460 on the BSE. 

With the market-cap of Rs 2,25,351 crore, the company currently stands ahead of ONGC (Rs 2,17,266 crore) and (Rs 2,17,865 crore), the BSE data showed.

pared most losses to settle nearly 1% lower at Rs 948 after the company issued clarification with regard to reports speculating on plans of stake sale by the promoters. The stock dropped nearly 4% in intraday trade.

“The reports in the media are speculating on plans of stake sale by the promoters. This speculation has already been categorically denied by the promoters”, said on clarification of the news report.

Reliance Communications continued its slide, falling as much as 3.2% in intraday trade. The company on Wednesday pushed back against Moody's and Fitch, disagreeing with the ratings agencies' downgrade. The stock ended at Rs 18, down 0.5%.

Among gainers, Natco Pharma hit a new high of Rs 1,054, up 3%, extending its 15% gains of the last eight trading sessions after the company registered a nearly three-fold growth in consolidated net profit at Rs 176 crore in Q4FY17 against Rs 63 crore posted in the corresponding quarter of the previous year.

Shares of state-owned electric utilities companies such as NHPC and SJVN rallied more than 5% each on reports that the government has decided to provide a Rs 16,000-crore bailout package to the hydropower sector, drowning under a spate of stalled and stressed projects.

Global markets

were trading higher as investors reacted to the prospects of a hung in The pan-European Stoxx 600 was 0.24% higher with the Britain's FTSE 100 rising 1.17%, supported by a fall in sterling as big conglomerates on the index earn revenues in the US dollar.

Japan's Nikkei added 0.5% and MSCI's broadest index of Asia-Pacific shares outside Japan were all but flat. China's Shanghai Composite was up 0.2%, while Hong Kong's Hang Seng dipped 0.1%. 

On Wall Street, E-mini futures for the S&P 500 edged up 0.1%.

(With inputs from Reuters)

First Published: Fri, June 09 2017. 15:39 IST
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