Markets continue upward march; financials rally

Markets continue the upward march for the fifth straight session with Sensex regaining its 27,000 mark as market participants breathe a sigh of relief after the US Federal Reserve left its benchmark interest rate unchanged. 

Advancement of Monsoons and favorable macroeconomic parameters coupled with a strengthened rupee has further lifted the sentiments.  

By 11.40, the Sensex was higher by 224 points at 27,057 and the Nifty gained 54 points at 8,146.

A broad-based rally is evident on the bourses led by a stellar performance by Reliance Industries which is rallying higher for the fifth straight session post the AGM on optimism about company's plans to start 4G phone services in December.

RUPEE

The rupee has appreciated by 25 paise to trade at 63.87 against the dollar after the American currency weakened overseas on the back of sustained selling by exporters and banks amid a firm opening in the local equity market.

BRENT CRUDE

Brent crude gained after the Federal Reserve kept the outlook for interest rate increases uncertain.

GOLD

Gold extended gains after the dollar came under pressure as the Federal Reserve indicated it may hike US rates later than market expectations and cut economic growth forecasts. 

STOCKS ON THE RADAR

On the sectoral front, all sectoral indices are trading in the positive territory with BSE Bankex, Capital Goods, Oil & gas and Consumer Durables indices trading higher between 1-2%.

RIL is rallying higher for the fifth straight session post the AGM on optimism about company's plans to start 4G phone services in December. The stock is up over 4%.

HDFC Bank has slashed base rate by 0.15%, a move which will lower EMIs for its borrowers. The stock is up 1.6%.

The Bombay High Court on Wednesday termed the appointment of two directors on YES Bank's board as invalid and stated that the proposed appointments of three others - Rajat Monga, Sanjay Palve and Pralay Mondal - were void. The stock is trading with marginal losses.

Industrial action by workers at Tata Steel UK has been suspended until Saturday so that a new offer on pensions can be considered. The stock is trading with marginal losses.

Torrent Pharma has got a nod from the government to raise the limit of investment by foreign institutional investors (FII) from 13.09% to 35%. The stock is up 2.6%.

PTC India Financial Services has raised nearly $60 million from two international development finance bodies to fund renewable energy projects. The stock has surged 5%.

SBI is targeting 12% growth in credit in the state this fiscal, banking on a turnaround in the mining sector which it expects to happen by the third quarter. The stock is up 1%.

ONGC Videsh Limited (OVL), the external arm of state-run explorer Oil and Natural Gas Corporation, will invest up to $400 million for exploration activities in Kazakhstan, an official said on Wednesday. The stock is up 1.5%.

SpiceJet has put up 50,000 tickets on sale for four days to popular international destinations such as Colombo, Bangkok and Dubai. The stock is up 0.6%.

Orchid Chemicals & Pharmaceuticals has received nod from the US health regulator USFDA for generic anti-bacterial Gemifloxacin Mesylate tablets. The stock has zoomed 15%.

Shares of housing finance companies were in focus and trading higher in the range of 2%-4% on the bourses after the Cabinet on Wednesday cleared Housing for All by 2022 — a scheme with an interest subvention of 6.5% on housing loans to the economically weaker section (EWS).

Shares of Strides Arcolab have dipped 5.4% to Rs 1,091 on the BSE in early morning trade after the government has rejected proposal of pharmaceutical company.

Maruti Suzuki has signed a deal with Malaysian carmaker Proton for the assembly and sale of an entry-level model in its domestic market. The stock has gained nearly 1%.

Cipla has dropped nearly 1% on reports that Cipla business head Sameer Goel has resigned from his post.

Among broader markets, BSE Midcap and Smallcap indices are in line with large counterparts and are up between 0.7-1.2%. The market breadth is strong with 1,504 shares advancing and 749 shares declining on the BSE.

  


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