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Benchmark indices continue their winning streak on sustained buying in IT and metal shares bouyed by economic reforms announced by the government. Further, strong corporate earnings and global cues have influenced the sentiments of the market participants.
At 10.40 AM, the 30-share Sensex is up 297 points at 27,643 and the 50-share Nifty has gained 89 points at 8,257.
On Thursday, FIIs were net buyers to the tune of around Rs 1,257.49 crore.
The Indian rupee is trading at Rs 61.36 compared to the previous close of Rs 61.43 after the US Federal Reserve expressed confidence about growth in the economy.
Global Markets:
Asian shares ticked higher on Friday as investors cheered upbeat U.S. growth data, while the dollar held near four-week highs against the yen as markets awaited the outcome of the Bank of Japan's monetary policy meeting.
The BOJ is widely expected to maintain its massive asset buying programme and its upbeat forecast that inflation will hit its 2 percent target next year, suggesting no further stimulus is on the horizon. Japan's Nikkei is up 5%
Hang Seng and Shanghai Composite have gained around 1%. Straits Times is up 0.5%
US markets rose sharply on better than expected third quarter economic data. Gross domestic product grew at a 3.5% annual rate in the third quarter while underlying trends of the rate of new applications for unemployment benefits hit its lowest level since May, 2000. Markets were also boosted by another round of strong earnings data from corporates. The Dow Jones gained around 1.3%, the S&P added 0.6% while Nasdaq gained 0.3%.
Sectors & Stocks:
On the sectoral front, BSE Oil & Gas index is the top gainer up 1.5% followed by IT, Metal, Realty and Power indices up 1%. However, BSE Consumer Durables index is losing sheen and is down over 2.5%.
Telecom major Bharti Airtel is the top loser and is down 1%. The company reported a 170.2 per cent jump in net income during the July-September quarter to Rs 1,383 crore. The company’s highest quarterly profit since March 2011 was backed by a 74 per cent increase in data revenue in India as data volume doubled. Its net profit stood at Rs 512 crore in the corresponding quarter last year.
The country’s largest car maker, Maruti Suzuki India Limited (MSIL), on Thursday reported 29 per cent increase in the net profit to Rs 862 crore for the second quarter ended September, on the back of cost reduction efforts and strong growth in domestic sales. The company had posted net profit of Rs 670 crore in the corresponding period of the previous financial year. The stock is up 0.5%. However, Tata Motors and Bajaj Auto are trading lower on profit taking. M&M is trading with marginal losses on caution ahead of the quarterly results.
IT Services exporters and healthcare stocks have surged on Friday after US Federal Reserve expresses optimism about US economic recovery. Infosys, TCS , Persistent Sys, HCL Tech, Oracle Finance, Tech Mahindra, Midtree and Wipro have gained between 1-3% on the BSE.
Sun Pharma, Cipla and Dr Reddy’s Lab are up between 0.3-1%
Oil & Gas stocks continue its upward march with GAIL, ONGC and RIL are trading higher between 0.5-0.8%. GAIL is trading higher ahead of the quarterly results due later during the day.
Cigarette maker and Index heavyweight ITC is trading 1% higher ahead of the Q2 results.
The government has relaxed the norms for allowing foreign direct investment (FDI) in the construction development sector. It is expected the move will boost affordable housing projects and smart cities across the country. As a result, capital goods, financials, metal and mining, power and realty stocks are witnessing an upsurge.
L&T, Tata Power, Tata Steel, Sesa Sterlite, Coal India, Hindalco and BHEL are trading higher between 0.1-2%.
NTPC is trading with marginal gains ahead of the quarterly results.
Barring ICICI Bank, all financial stocks are trading firm. HDFC twins, SBI and Axis Bank are up between 0.5-1%. ICICI Bank is down over 0.5%. ICICI Bank – the country’s largest private sector lender reported a net profit of Rs 2,709 crore for the quarter ended September 30 which is higher by 15% as compared to the same period of the previous year.
Among other shares, Jubilant Foodworks that runs food chains, including Domino's Pizza and Dunkin' Donuts in India has declined around 1.7% on BSE at Rs 1,285.05 after reporting a 12.7% drop in its net profit at Rs 29 crore in the July-September quarter of 2015 fiscal compared to the Rs 33.24 crore net profit in the same quarter last fiscal.
Shares of Thermax have surged over 4% to Rs 917 on the BSE after the Energy and environment major secured Rs 321 crore worth order to build and commission a captive power plant in Africa.
In the broader market, the BSE Mid-cap and Small-cap indices are up between 1-1,4%.
Market breadth is very strong with 1,548 gainers and 598 losers on the BSE.
