Sensex ends 128 points higher; BSE Smallcap index up 1%

Benchmark indices ended higher in trades today, amid firm European cues, with pharma shares leading the gains.

The S&P BSE Sensex rose 128 points to end at 27,916 while the Nifty50 gained 37 points to close the session at 8,566. Broader markets outperformed the benchmark indices- BSE Midcap and Smallcap indices were up almost 1%.

"Market is gaining momentum supported by continued FII inflow and expectation that GST will see the light of day in the current session. FIIs till 19th July have pumped in Rs55bn to the market as compared to Rs52bn in June. On the global front, the market expects to maintain status quo in tomorrow’s ECBs interest rate decision and will keenly watch any cues on further stimulus plan," says Vinod Nair, Head of Research, Geojit BNP Paribas Financial Services.

The International Monetary Fund (IMF) has lowered India's economic growth projections by 0.1 percentage point to 7.4 per cent each for the current financial year and 2017-18, due to a slower investment revival than expected earlier.  

In overseas markets, European stocks edged higher as investors struck a cautiously optimistic tone ahead of the European Central Bank's (ECB) meeting tomorrow. The ECB is expected to keep monetary policy unchanged. Market participants are looking forward to ECB President Mario Draghi's news conference for hints on future moves. Asian stocks witnessed a mixed trend.

In the US, the S&P 500 index pulled back from record highs yesterday, while the Dow Jones Industrials Average edged up for an eighth straight day of gains, as investors pondered mixed earnings reports. Data released yesterday, showed that housing starts rose 4.8% in June, a sign of steady improvement in the market for newly constructed homes.

Back home, Wipro was the top loser down almost 2% after first quarter profits was lower-than-expected while subdued IT services revenue growth forecast for September quarter. Among others, Infosys was down nearly 1%. HCL Tech eased 1%.

Sun Pharmaceutical Industries rose 2% after the company announced that one of its subsidiaries received final approval from United States Food & Drug Administration (USFDA) for its Abbreviated New Drug Application (ANDA) for generic version of Crestor, Rosuvastatin Calcium tablets 5 mg (base), 10 mg (base), 20 mg (base) and 40 mg (base).

ITC ended higher by over 1% higher ahead of its first quarter earnings on Thursday. Hindustan Unilever firmed up after on short covering after losses in the previous sessions amid volume growth concerns in the first quarter.

For the second straight quarter, HUL reported only a four per cent volume growth in April-June 2016 quarter, lower than the six-seven per cent band it had seen in previous periods.

Reliance Industries extended gains and was up 0.8% after the company reported a bigger-than-expected 18% jump in June quarter profit on account of highest refining margin in eight years and robust petrochemical earnings.

Anant Raj surged 20% after the company said that its board of directors at a meeting held yesterday approved demerger of real estate division of Anant Raj Agencies (ARAPL) into Tauras Promoters & Developers (TPDPL) and subsequent amalgamation of remaining ARAPL with the company.

JBM Auto zoomed 18% after the company announced that JBM Solaris will invest Rs 300 crore towards engineering, design and development and manufacturing, of electric and hybrid buses in India.

Shares of cement companies ended higher by up to 8% on the bourses on expectation of healthy growth in earnings for the quarter ended June 30, 2016 (Q1FY17).

Deccan Cements, HeidelbergCement India, Saurashtra Cement, Birla Corporation, India Cements, Sagar Cements, Prism Cement and Dalmia Bharat were up more than 2% each, while ACC, UltraTech Cement, Ramco Cement, J K Lakshmi Cement and Orient Cement were up in the range of 1% to 2% on the Bombay Stock Exchange (BSE).

Financial Technologies (India) slipped over 5%, after hitting 52-week low on the BSE in an intra-day trade on the back of heavy volumes after the company said that the Mumbai police has secured assets of the company.

Aurobindo Pharma moved higher by over 5% after the company said that it has received nod from the US drug regulator to manufacture and market Rosuvastatin Calcium tablets.


With Capital Market input