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Market ends with strong gains

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Key benchmark indices ended with robust gains on Thursday, supported by positive global stocks. The Nifty ended above 11800 mark. Strong rally in the final hour of trading session was supported by pharma, metal and banks stocks.

The barometer index, the S&P BSE Sensex, rose 488.89 points or 1.25% to 39,601.63, as per the provisional closing data. The Nifty 50 index rose 140.30 points or 1.20% to 11,691.45, as per the provisional closing data.

Global shares traded higher after a dovish US Federal Reserve opened the door to further rate cuts. Following the Fed meeting on Wednesday, the US central bank left interest rates unchanged but opened the door for a possible rate cut in the future.

The rally was broad based. Among secondary barometers, the BSE Mid-Cap index was up 1.64%. The BSE Small-Cap index was up 1.05%.

The market breadth, indicating the overall health of the market, was strong. On BSE, 1532 shares rose and 1008 shares fell. A total of 140 shares were unchanged.

Wind turbine maker Suzlon Energy surged 24.18% to Rs 4.16 after media reports suggested that the company's lenders will meet tomorrow to decide on the debt restructuring proposal for the company.

Jet Airways India soared 93.35% to Rs 64. A consortium of 26 bankers led by the State Bank of India earlier this week took the airline to the National Company Law Tribunal (NCLT) for the speedy recovery of their dues. NCLT will pass an order at 17:00 IST today, 20 June 2019, on whether the bankruptcy case will be admitted, reports suggested.

Titan Company was up 2.44% at Rs 1,305.80. The stock hit a record high of Rs 1,308.50 in intraday today.

Bajaj Finserv was up 2.03% to Rs 8,422. The stock hit a 52-week high of Rs 8,440 in intraday today.

Bajaj Finance was up 1.71% to Rs 3,585. The stock hit a 52-week high of Rs 3,590.70.

Housing Development Finance Corporation (HDFC) rose 1.04% to Rs 2,200.90. HDFC said it has entered into agreements for acquiring up to 51.2% of the equity share capital of Apollo Munich Health Insurance Company for a total consideration of Rs 1346.84 crore. The announcement was made after market hours yesterday, 19 June 2019.

Apollo Hospitals Enterprise rose 1.42% to Rs 1371.40 after the company said that the board of directors of the company approved the sale of the entire 9.96% equity stake held by the company in Apollo Munich Health Insurance Company, an unlisted public limited company for a total consideration of around Rs 300 crore. The announcement was made after market hours yesterday, 19 June 2019.

Adani Green Energy (AEGL) was up 3.66% to Rs 41.10 after the company announced that it had won bids for setting up 600 MWac ISTS-connected wind-solar hybrid power projects in a tender issued by Solar Energy Corporation of India (SECI). The fixed power purchase agreement (PPA) tariff is Rs. 2.69/ kWh for a period of 25 years. Projects are expected to be commissioned by Q4 FY 2021.

UPL was down 8.40% to Rs 870.70. The stock hit an intraday high of Rs 947.55 and an intraday low of Rs 833.65. The stock hit a 52-week low of Rs 537.90 on 19 July 2018 and a 52-week high of Rs 1045 on 12 June 2019.

Overseas, European stocks were trading higher as investors await an interest rate decision from the Bank of England. Asian stocks ended higher on Thursday. Investors globally were rejoiced after the US Federal Reserve spurred hopes of a rate cut as soon as July, even though it left interest rates unchanged. The Fed news came in after European Central Bank chief Mario Draghi said in his latest speech said that the European Central Bank could cut interest rates again or provide further asset purchases, if inflation does not reach its target.

Meanwhile, on the US-China trade front, hopes in Beijing appear to have risen for a trade deal between the two economic powerhouses. US President Donald Trump and Chinese Xi Jinping are reportedly set to meet at the upcoming G-20 summit in Japan, which will happen next week.

US stocks closed higher Wednesday after the Federal Reserve kept interest rates unchanged as widely expected but dropped the reference to "patient" in its statement to indicate it is ready to make ease monetary policy if needed.

The Fed said it will closely monitor the economy given increasing uncertainty about government policy though it signaled it may not need to lower rates before 2020. The central bank remained mostly optimistic about the economic outlook, but said inflationary pressures have receded, compelling it to lower its forecast for PCE inflation in 2019 to 1.5% from 1.8%, below its 2% target. At the same time, it left its gross domestic product estimate at 2.1%.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, June 20 2019. 15:44 IST