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Benchmark share indices ended higher on April F&O expiry, amid a volatile trading session, led by rate sensitive sectors like auto and banks after slump in food inflation numbers, rekindled hopes of rate cut by the central bank in the upcoming policy meet.
The 30-share Sensex ended at 19,406 up 227 points or 1.19% and the 50-share Nifty ended at 5,916 up 79 points or 1.36%. The Sensex and the Nifty reached an intra-day high of 19,435 levels and 5,925 mark, respectively.
Says Sahaj Agrawal, Deputy Vice President – Derivatives Research, Kotak Securities, “April series has witnessed strong up-move led by the Banking. IT and Metal stocks remained under pressure. Nifty and component stocks have witnessed strong rollovers with minimal pending positions. Do not expect any significant volatility as we approach the expiry which is expected to be around 5900-5930 levels.On the global front, Asian markets ended higher in trades on Thursday on hopes that the weak global economic data will encourage major central banks to keep or deepen their monetary stimulus improving risk sentiment.
Hang Seng advanced 218 points to close at 22,401, Nikkei jumped 83 points to end at 13,926, Straits Times ended, up 11 points 3,334 and Seoul Composite closed higher by 16 points at 1,952. While, Shanghai Composite closed lower by 19 points at 22,401 and the Taiwan Weighted ended lower by a point to settle at 8021.
Back home, President Pranab Mukherjee today expressed confidence that the country would be able to return to the 7 to 8% growth level in the next two to three years.
Stating that India's strategy of inclusive economic growth has shown positive results, he pointed out that average annual economic growth during the last 10 years was 7.9% though it has decelerated to 5% in 2012-13.
On the sectoral front, BSE Auto index zoomed by nearly 3% followed by counters like Healthcare, Oil & Gas, Metal, Banks, Power, PSU and Capital Goods, all gaining between 1-2%.
From the auto space, Tata Motors was the top Sensex gainer, up over 4%. Maruti Suzuki, Hero Moto, Bajaj Auto, M&M and Maruti Suzuki surged between 2-3%.
Banking and financial shares like SBI, ICICI Bank, HDFC Bank and HDFC gained between 0.4-3% on expectations that the RBI will start cutting interest rates in the coming months to support the slowing economy.
Index heavyweight Reliance Inds gained over 2%.
Dr Reddy’s Laboratories ended higher by 4%. The pharmaceutical stock has outperformed the market by surging 13% in past one month after the company settled its claims against Ottawa headquartered Nordion Inc. (formerly MDS Inc.) in a case pending in a district court of New Jersey in the US, for a cash payment of $ 22.5 million by Nordion to Dr Reddy’s Lab.
Other notable gainers included NTPC, GAIL, Sun Pharma, Cipla, Sterlite and Hindalco.
On the losing side, Wipro, TCS, Infosys, HUL and JSPL declined between 1-2%.
The broader markets ended marginally higher, gaining between 0.1-1%.
The market breadth in BSE ended slightly positive with 1,222 shares advancing and 1,156 shares declining.
SMART MOVERS
Kotak Mahindra Bank ended higher by 2%, extending its 10% rally in past seven trading sessions, after the Singapore's Heliconia Pte Limited proposes to buy 2.6 % stake in the bank for Rs 1,296 crore.
Axis Bank ended higher by 4% at Rs 1,503 after reporting a better-than-expected 22% year-on-year (yoy) jump in net profit at Rs 1,555 crore for the quarter ended March 2013 (Q4) on back of higher interest income, growth in non-interest income.
SpiceJet rallied 18% to Rs 37 on the Bombay Stock Exchange on back of heavy volumes after Abu Dhabi-based Etihad Airways said it is acquiring 24% stake in rival Jet Airways at over 30% premium to Jet's closing share price on Tuesday.
Motilal Oswal Financial Services surged 6% after the broking firm announces its plan to buyback shares of the company.
