MARKET COMMENT Jayant Manglik, President, Religare Brokin Markets started the week on robust note and posted decent gains in the end. Among the benchmark indices, Nifty opened with an uptick and gradually inched higher, tracking encouraging earnings announcements. Banking and pharma led the rebound and others also joined in as session progressed. Besides, recovery in broader market indices further boosted the sentiment. Nifty finally settled around 10,250; up by over two percent. We may see further rebound ahead but upside seems capped. We reiterate our view maintaining stock specific trading approach and focusing more on position management. Earnings and global cues would largely dictate the market trend in near future
The S&P BSE Sensex reclaimed the 34,000-mark, ending at 34,067, up 718 points, while the broader Nifty50 index settled at 10,251, up 221 points.
Among key stocks, ICICI Bank settled over 11 per cent to Rs 351.45 on the National Stock Exchange (NSE) after the private sector lender reported better-than-expected results for the September quarter of FY19.
Divi’s Laboratories surged 15 per cent to end at Rs 1,444.20 on the NSE after the it reported a healthy 92% year-on-year (Y-o-Y) jump in its net profit at Rs 3.98 billion in September quarter (Q2FY19), on back of strong revenue growth. The company had a profit of Rs 2.07 billion in the year-ago quarter.
In sectoral indices, Nifty PSU Bank index post sharpest single-day gain in past one year, surging 8 per cent after a media report suggested that the government expects some changes in the prompt corrective action (PCA) framework prescribed by the Reserve Bank of India (RBI) to enable more sanction of credit by PSU banks.
The Nifty Pharma index rose 5.2 per cent led by gains in Divi's Labs and Dr. Reddy's Laboratories. Shares of Dr Reddy’s have gained 5.3% to end at Rs 2,531.65 on the NSE after the company reported a good operational performance in September quarter (Q2FY19), on account of lower R&D, higher other income, financial income, and lower tax.