Fantastic Friday for D-Street! Bulls managed to bounce back on Friday and close the week on a positive note, supported by gains in oil & gas, metals, auto, PSU, and banking stocks. The Nifty50 closed flat but with a positive bias for the week ended May 25.
The Nifty50 slipped towards 10,400 levels before bouncing back towards 10,600 levels on Friday. The index hit an intraday low of 10,417 on May 23 largely weighed down by rising crude oil prices, falling rupee, geopolitical concerns as well as political uncertainty.
‘Market participants have been confused by contradictory cues in the last couple of months. While boiling crude oil prices and the rupee-dollar equation are headwinds for the Indian economy, the demand scenario for automobiles, robust trends in the consumption growth from both rural & urban side are tailwinds,” Devang Mehta, Head – Equity Advisory, Centrum Wealth Management told Moneycontrol.
The Nifty formed a bullish candle on the daily charts and recouped all its losses witnessed in the week. The index is likely to remain volatile in the coming week ahead of F&O expiry on 31st May.
The S&P BSE Sensex closed 261 points higher or 0.76 percent at 34,924 on the other hand Nifty50 ended 91 points higher at 10,605.
Sectorally, the S&P BSE oil & gas index rose 3 percent, followed by the S&P BSE metal index which gained 2.2 percent, and the S&P BSE auto index which was up 1.7 percent.
The S&P BSE Midcap index rose 1.5 percent while the S&P BSE Smallcap index gained 1.17 percent.
Top Sensex gainers include names like ONGC (up 4.5 percent), Tata Steel (up 3.4 percent), Yes Bank (up 2.7 percent), Adani Ports (up 2.3 percent), and IndusInd Bank (up 2.3 percent).
Top Sensex losers include names like Coal India (down 1.3 percent), followed by ITC (down 1.04 percent), SBI (down 0.5 percent), and TCS (down 0.43 percent).
A month after hitting a market cap of USD 100 billion, Tata Consultancy Services hit a record Rs 7 lakh crore m-cap in intraday trade. The stock which touched a fresh 52-week high of Rs 3674, pared gains towards the close of the trade. TCS ended 0.4 percent down and mcap slipped to Rs6.8 lakh crore.
Stocks in news:
Cadila Healthcare share price rallied 7 percent after the company’s March quarter earnings beat analyst expectations on all parameters. Consolidated profit for the quarter grew by 53.3 percent year-on-year to Rs 590.8 crore compared to Rs 385.5 crore and revenue from operations increased 29.3 percent to Rs 3,250.2 crore from Rs 2,513.3 crore YoY.
Shares of Avenue Supermarts gained 6.6 percent as a promoter of the company sold the stake in the company for achieving minimum public shareholding.
Private sector lender Karur Vysya Bank has reported a sharp 76.8 percent decline year-on-year in profit at Rs 50.6 crore for the quarter ended March 2018, dented by a massive jump in bad loans provisions. The stock closed 4 percent higher.
Shares of Pidilite Industries touched a 52-week high of Rs 1,146.50 in trade after the company’s Q4 net profit rose 57.4 percent at Rs 247.5 crore against Rs 157.2 crore in a year ago period. The stock closed 5.4 percent higher.
The IDBI Bank Ltd reported a loss of Rs5,663 crore ($834.82 million) for the fourth quarter, hurt by higher provisions for bad loans. The stock closed 3.1 percent lower.
In other news/Global Update:
HD Kumaraswamy’s government has passed the floor test after a voice vote. 117 MLAs voted in its favour. BJP MLAs had staged a walkout before the floor test.
The rupee gains 60 paise against the US dollar while the Brent crude futures trade around $77 a barrel, down 2 percent from the previous close.
Asian markets closed slightly lower after US President Donald Trump cancelled a scheduled summit with Kim Jong Un. Hong Kong’s Hang Seng fell half a percent and China’s Shanghai Composite was down 0.4 percent.
European stocks were higher after North Korea’s response to President Donald Trump’s decision to cancel a landmark summit appeased investors’ fears.