Market spurts as pivotals advance

Domestic stocks logged strong gains on steady buying demand in index pivotals. The barometer index, the S&P BSE Sensex, gained 424.50 points or 1.12% at 38,233.41. The Nifty 50 index gained 129 points or 1.14% at 11,483.25. The Sensex ended well above the psychological 38,000 mark after day's high above that level in intraday trade.

Local stocks drifted higher in early trade. A bout of volatility was seen as the key indices extended gains in morning trade. Stocks hovered in positive zone till afternoon trade. Indices extended gains in mid-afternoon trade. Strong buying demand in late trade propelled the key indices to day's high in late trade.

The S&P BSE Mid-Cap index rose 1.09%. The S&P BSE Small-Cap index rose 0.66%.

The market breadth, indicating the overall health of the market, was positive. On the BSE, 1402 shares rose and 1291 shares fell. A total of 165 shares were unchanged.

Index heavyweight Reliance Industries gained 3.16% to Rs 1,367.15

Larsen & Toubro fell 0.37%. L&T Hydrocarbon Engineering (LTHE), a wholly owned subsidiary of Larsen & Toubro, has won a large order from Tawfiq Coke Products-Oman. The contract scope includes selection of technology licensor, FEED & EPC for a 2 x 225,000 TPA plant of calcined coke from green pet coke. Process facilities include material handling, rotary kiln and cooler, combustion chamber, gas separation and associated offsite & utilities packages. The company said the order fall under "large" category which ranges between Rs 2,500 crore and Rs 5,000 crore as per its classification of contracts. The announcement was made during trading hours today, 26 March 2019.

Bharti Airtel rose 0.31%. Bharti Airtel announced new ISD call charges for Bangladesh and Nepal as part of its endeavour to simplify tariffs and add to customer convenience. The new ISD call charges, which are currently available to Airtel prepaid mobile users, are the most affordable in the industry and eliminate the need for buying additional ISD packs to make calls to Bangladesh and Nepal. Airtel mobile customers can now enjoy the most competitive ISO tariffs with their regular recharge packs and bundles. Calls to Bangladesh will now be charged at only Rs 2.99/minute (versus Rs. 12 per minute earlier) representing a reduction of 75%. Calls to Nepal will now be charged at Rs 7.99 per minute (versus Rs 13 earlier) representing a reduction of approximately 40%. The announcement was made after market hours yesterday, 25 March 2019.

Grasim Industries rose 2.14%. Grasim Industries said it has challenged the order of Deputy Commissioner of Income Tax (DCIT) dated 14 March 2019, raising demand of sum of Rs 5872.13 crore on account of dividend distribution tax (including interest) before the Bombay High Court. The company has submitted that the order passed by the DCIT is wholly unsustainable in law and the department has sought time to file reply. The company has received order dated 22 March 2019 from the Bombay High Court. The High Court, while granting time to the Department for filing reply, has granted stay against the recovery of demand. The announcement was made after market hours yesterday, 25 March 2019.

Overseas, European shares were trading higher, shurugging off uncertainty over Britain's exit from the European Union.

British lawmakers on Tuesday wrested control of the parliamentary agenda from the government for a day in a highly unusual bid to find a way through the Brexit impasse after Prime Minister Theresa May's EU divorce deal was rejected again. Lawmakers will now vote on a range of Brexit options on Wednesday, giving parliament a chance to indicate whether it can agree on a deal with closer ties to Brussels - and then try to push the government in that direction.

Asian stocks ended higher, a day after a regional sell-off sparked by fresh worries of a coming U.S. recession. US stocks closed mostly lower Monday after data showing weakness on the global economic front triggered heavy losses at the end of last week while investors continued to fret over the inversion of the yield curve. However, the Dow bucked the trend to rise as shares of Boeing Co. rallied after recent losses.

Meanwhile, the markets showed little reaction to the end of Special Counsel Robert Mueller's probe into Russian meddling in the 2016 presidential election.

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