Sensex, Nifty surge to record high; Sesa gains

MUMBAI Mon Apr 21, 2014 4:41pm IST

The Bombay Stock Exchange (BSE) building is pictured next to a police van in Mumbai April 9, 2014. REUTERS/Danish Siddiqui

The Bombay Stock Exchange (BSE) building is pictured next to a police van in Mumbai April 9, 2014.

Credit: Reuters/Danish Siddiqui

Related Topics

Stocks

   

MUMBAI (Reuters) - The Sensex and Nifty hit record highs on Monday as lenders such as Axis Bank rallied ahead of their financial results starting later this week, while strong gains in debt markets reduced concerns about potential losses in the sector's bond portfolios.

Sentiment also got a boost after the Supreme Court allowed resumption of mining in Goa, sending shares in miners such as Sesa Sterlite (SESA.NS) surging.

Overseas investors, who have pumped in nearly $4.8 billion into Indian shares so far this year, were net buyers worth 4.3 billion rupees ($71.20 million) on Thursday, snapping three days of a selling streak totalling 5.69 billion rupees ($94.21 million), exchange and regulatory data showed.

Still, analysts warned the stock markets were unlikely to sustain strong gains given the Nifty is already up 8.2 percent so far this year while caution is likely to prevail ahead of the outcome of the elections next month.

"We think markets will trade range-bound, and do expect profit-taking at higher levels. We have seen even FIIs have started booking profits. So, one should be careful in entering a position," said Suresh Parmar, head, institutional equities at KJMC Capital Markets.

The Sensex closed 0.6 percent higher at 22,764.83.

The Nifty ended 0.56 percent higher at 6,817.65.

Banking shares led the gains, with the sector's sub-index up 1.34 percent on hopes banks will show sturdier earnings when they start reporting their financial results later this week.

Concerns about potential mark-to-market losses in their bond portfolios were also calmed after the central bank fully sold the 200 billion rupees ($3.31 billion) worth of debt on offer on Thursday without any devolvements.

Axis Bank Ltd (AXBK.NS) rose 2.67 percent while ICICI Bank (ICBK.NS) gained 1.52 percent. Both the banks are set to report their earnings on Friday.

State-run lenders also gained, with State Bank of India ending up 2.72 percent.

A ruling by the Supreme Court allowing mining from Goa of up to 20 million tonnes iron ores a year boosted miners. Sesa Sterlite (SESA.NS) rose 4.64 percent, its biggest single-day gain since Dec. 9, 2013.

Capital goods and auto stocks also gained sharply as dealers cited strong buying by foreign institutional investors. Larsen and Toubro (LART.NS) gained 4.2 percent while Mahindra & Mahindra (MAHM.NS) gained 3.6 percent.

Among other gainers, Natco Pharma Ltd (NATP.NS) gained 7.5 percent after U.S. Supreme Court Chief Justice John Roberts denied a request by Teva Pharmaceutical Industries Ltd (TEVA.TA) to stay a lower-court ruling in a patent case that favoured the developers of generic versions of Teva's multiple sclerosis drug.

Shares in AstraZeneca India (ASTR.NS) gained 4.3 percent after the Sunday Times newspaper reported Pfizer Inc (PFE.N) approached its parent AstraZeneca PLC (AZN.L) to propose a 60 billion pound ($101 billion) takeover.

However, shares in third largest software exporter, Wipro Ltd (WIPR.NS) plunged 6.8 percent after the company's IT revenue guidance was seen as below estimates by some analysts.

($1 = 60.3950 rupees)

(Reporting by Indulal PM; Editing by Anupama Dwivedi)

FILED UNDER:
Photo

After wave of QE, onus shifts to leaders to boost economy

DAVOS, Switzerland - Central banks have done their best to rescue the world economy by printing money and politicians must now act fast to enact structural reforms and pro-investment policies to boost growth, central bankers said on Saturday.

Barack Obama in India

Reuters Showcase

Coal Mining

Coal Mining

India to open coal to commercial mining firms soon, minister says  Full Article 

RBI Loan Rules

RBI Loan Rules

RBI relaxes overseas loan recast rules   Full Article 

E-commerce Firms

E-commerce Firms

Amazon, e-commerce rivals fuel commercial property boom in India  Full Article 

Growth Forecasts

Growth Forecasts

Indian economic growth forecasts pegged back, despite rate cuts: Reuters Poll.  Full Article 

Uber is Back

Uber is Back

Uber back in Delhi; govt says must await approval.  Full Article 

Markets at Record

Markets at Record

Sensex rises to record after ECB stimulus programme.  Full Article 

Pharma Sector

Pharma Sector

Ipca Labs hit by FDA ban on plant for standard violations.  Full Article | Related Story 

Forex Reserves

Forex Reserves

India FX reserves at record high as RBI fortifies defences  Full Article 

QE for Euro Zone

QE for Euro Zone

ECB launches 1 trillion euro rescue plan to revive euro economy.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage