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:

Politics

REUTERS SHOWCASE

Fund Raising

Fund Raising

Flipkart raises $700 million in fresh funding.   Full Article 

Reforms Push

Reforms Push

Modi may order insurance, coal reforms if vote delayed - officials.  Full Article 

Reuters Exclusive

Reuters Exclusive

India looks to sway Americans with nuclear power insurance plan  Full Article 

To Boost Growth

To Boost Growth

Crank up public spending to revive growth - chief economic adviser.   Full Article 

Bold Steps

Bold Steps

SpiceJet rescue plan marks bold bet on Indian aviation recovery.   Full Article 

New Airline

New Airline

Tata, Singapore Air venture Vistara to take off on Jan 9.  Full Article 

Online Sales

Online Sales

Knock knock. Who's there? Amazon's best-selling holiday author.  Full Article 

Chinese Economy

Chinese Economy

China revises up size of 2013 economy, sees no effect on 2014 growth.  Full Article 

Reuters Poll

Reuters Poll

BSE Sensex to hit 32,980 by December 2015  Full Article 

Reuters India Mobile

Reuters India Mobile

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