ALSO READMarkets hold gains; pharma stocks under pressure after Trump speech Broader markets outperform benchmark indices; BSE Smallcap index up 0.6% Markets end flat amid volatility; F&O expiry eyed Markets trade flat ahead of Q3 earnings; Dr Reddy's fall over 3% Sensex gains 100 points, Nifty aims 8,050; Lupin surges 5%
Benchmark Indices settled the day higher amid choppy trade led by gains in the IT index after Donald Trump did not announce any stringent rules for H1B visa.
HSBC’s report indicating chances of a 2% fall In India’s GDP in the coming 2 quarters also didn’t dampen the sentiment.
Nifty settled the day above the 8,400 mark for the first time since November 9 while Sensex reclaimed its crucial 27,200 level.
Sensex ended at 27,247, up 107 points, while the broader Nifty50 ended at 8,407 up 26 points.
The broader market underperformed the headline indices with BSE Midcap gaining 0.16% and BSE Smallcap down 0.15%.
"The market continued to gain with a gradual change in perception over the quarter results and dollar losing strength after US president elect’s press conference. Global market momentum has got stuck and the sentiment turned cautious due to the absence of any economic policy announcement by Trump. Back home, today’s CPI & IIP data are throwing some positive momentum to the market as the consensus is expecting some pick up in industrial activity and inflation to remain under the RBIs target," said Vinod Nair, Head of Research, Geojit BNP Paribas Financial Services.
Sectors and Stocks
NTPC, Power Grid, Infosys, L&T and Wipro were the top gainers while Lupin, HUL, ITC, Coal India and M&M were the laggards in Sensex.
IT Index rose around 2% on BSE with Infosys gaining 3.5% in today’s trade ahead of it’s Q3 earnings tomorrow.
Pharma index pared earlier losses but still settled the day 0.73% lower. The index was down after Trump Trump said pharmaceutical companies are "getting away with murder". Lupin, Dr Reddy’s and Sun Pharma fell between 0.6-2%
Power stocks charged up today with the BSE Power index rising more than 3%. NHPC, NTPC, Power Grid, Torrent Power and Adani Power rallied 3.8-9%.
Shares of public sector undertaking companies (PSUs) were in focus with the S&P BSE PSU index hitting 22-month high on Thursday in intra-day trade after strong gain in electric utilities and oil & gas stocks.
Total 12 PSU stocks include NTPC, NHPC, Steel Authority of India (SAIL), Moil and MMTC hit their respective 52-week highs, while, Bharat Electronics, Hindustan Petroleum Corporation (HPCL), Indian Oil Corporation (IOC) and Power Grid Corporation of India hit lifetime highs on the BSE.
NTPC ended the day around 6% high after reports that it has signed a non-binding agreement with Rajasthan Rajya Vidyut Utpadan Nigam Ltd and Rajasthan Urja Vikas Nigam Ltd for takeover of Chhabra Thermal Power Plant.
HSBC sees 2% decline in GDP
India's GDP growth numbers are expected to see a decline of 2% in the third and fourth quarters of the current fiscal, as effective currency in circulation has contracted significantly, says an HSBC report.
However, it said, as enough notes are printed, growth is likely to return to the "7% ballpark".
"Using the cash elasticity of GDP, we estimate that growth could be about 2% lower in third quarter and fourth quarter of 2016-17 (ending March), given that effective currency in circulation has contracted by 60 per cent (as of early-December)," HSBC said in a research note.
The U.S. dollar nursed widespread losses on Thursday after President-elect Donald Trump's long-awaited news briefing provided scant clarity on future fiscal policies, disappointing bulls wagering on major stimulus.
Yet neither did Trump mention possible tariffs against Chinese exports, a relief for Asian share markets that have feared the outbreak of a global trade war.
It was enough to help MSCI's broadest index of Asia-Pacific shares outside Japan climb 0.6% to its highest since late October, while Shanghai stocks edged up 0.2%.
Going the other way, Japan's Nikkei slipped 0.9% as the yen climbed on a retreating dollar.
Bourses in Europe were lower as investors looked at fresh corporate reports and digested the latest remarks by President-elect Donald Trump. France's CAC, Germany's DAX and Britain's FTSE fell 0.2-0.5%.