Markets end higher amid volatile trading session

Bank shares gained after Moody's raised India's outlook to positive from stable

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Benchmark indices ended higher amid volatile trading session led by index heavyweight Reliance Inds and bank shares.

The 30-share Sensex provisionally ended higher 161 points at 28,869 and the 50-share Nifty gained 61 points at 8,775.
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(Updated at 14:40)
Benchmark indices continue to remain volatile in late trades even as gains in bank shares helped offset losses in pharma shares. Meanwhile, a Reuter’s poll of economists hinted that factory growth slowed for a third month running in February.

Weaker growth and inflation below the RBI's goal of 6% by January 2016 would give the central bank room to ease policy further this year to spur activity. The survey of 17 forecasters predicted India's industrial production (IIP) increased 2.4% in February from a year earlier, below January's 2.6%.

At 14:40PM, the 30-share Sensex was up 18 points at 28,725 and the 50-share Nifty was up 14 points at 8,729.

Among broader markets, BSE Midcap index has slipped 0.2% whereas the BSE Smallcap index has gained over 0.1%.

The market breadth is strong with 1,513 advances against 1,110 declines on the BSE.

GLOBAL MARKETS

Tokyo's benchmark index hit a 15-year high on Wednesday after Japanese retail investors ploughed a sizable amount of cash into new stock mutual funds and as regional bourses appeared to  benefit from rotation of funds out of U.S. equities.

Retailers and other domestic-demand oriented shares led the gains, with department store operator Takashimaya erasing earlier losses to gain sharply despite reporting modest earnings.

The Nikkei rose 0.8% to 19,789.81, closing at its highest level since April 2000, even as Wall Street shares posted small losses the previous day.

SECTORS & STOCKS

BSE Bankex and BSE Metal index have surged between 1-2%. However, BSE Healthcare index has slumped over 2% followed by counters like Realty, Consumer Durables and Capital Goods, all dipping between 1-1.6%.

Banking shares are trading higher up to 5% on the bourses after Moody's Investors Service changed India's outlook to 'positive' from 'stable' earlier and affirmed 'Baa3' credit rating on Thursday.

Kotak Mahindra Bank has rallied 5% to Rs 1,439, while Punjab National Bank (PNB) gained 4% at Rs 159 on the National Stock Exchange (NSE). IndusInd Bank, Bank of India, YES Bank, Axis Bank, Bank of Baroda, ICICI Bank and Canara Bank up 2% to 3%.

RIL has extended the gains of the previous session, soaring by 2% on reports that the company has discovered massive gas reserves at MJ-1 block in its KG-D6 basin. However, HPCL and BPCL, besides ONGC are trading marginally in the red.

India's summer monsoon rains are expected to be normal this year, the chief economic adviser at the finance ministry said on Thursday.

Monsoon rains are vital for India's farm sector, which accounts for 14 per cent of the $2 trillion economy, as half of the country's farmland lacks irrigation. Weak monsoon rains have cut farm output in the past, stoking inflation. Tracking the news FMCG major HUL firmed up and gained over 1%.

Other notable gainers are Tata Steel, Coal India, Maruti Suzuki and Hero Moto.

On the losing side, Sun Pharma, GAIL, Bharti Airtel, Cipla and BHEL have fallen between 1-3.5%.

Shares of frontline pharmaceutical companies are trading lower 2-4% on the bourses on profit bookings.

Sun Pharmaceutical Industries, Lupin, Cipla, Dr Reddy’s Laboratories, Torrent Pharmaceuticals, Strides Arcolab, Wockhardt, Glenmark Pharmaceuticals and Cadila Healthcare were down 2%-3% on the Bombay Stock Exchange (BSE).