Rediff.com  » Business » Sensex zooms 440 points to end at fresh 52-week closing high

Sensex zooms 440 points to end at fresh 52-week closing high

By Tulemino Antao
Last updated on: August 30, 2016 17:31 IST
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Private lenders HDFC Bank and ICICI Bank were the top gainers along with index heavyweights

Benchmark stock indices surged in late trades to end at fresh 52-week closing highs, amid firm European cues, led by banks while IT majors witnessed renewed buying interest amid attractive valuations.

The S&P BSE Sensex ended up 440 points at 28,343 and the Nifty50 surged 137 points to settle at 8,744. In the broader market, the BSE Midcap and Smallcap indices ended up nearly 1% each. Further, BSE500 touched a fresh lifetime high of 11,795 and the Nifty Midcap index also ended at a record closing high.

"Market regained its strength as FIIs continue to pour into the domestic market despite a likely hike in FED rate. FII inflow has improved post a muted trend seen in last week awaiting the FED chair’s speech last Friday. Global markets continue to be positive as investors have largely factored an interest rate hike in CY2016," said Vinod Nair, Head of Research, Geojit BNP Paribas Financial Services.

Foreign portfolio investors (FPIs) bought shares worth Rs 287 crore on Monday, as per provisional stock exchange data.

In overseas stock markets, European markets edged higher amid a weaker euro with stocks in Germany and France gaining the most while stocks in the UK were flat after trading resumed after a holiday on Monday. CAC and DAx were up 1% each while FTSE-100 was flat with positive bias.

Private lenders HDFC Bank and ICICI Bank were among the top gainers up over 2.5% each while IT majors witnessed renewed buying interest at lower levels.

In the IT space, Infosys which recently hit 52-week low ended up 1.9% while TCS gained nearly 2%.

Among the index heavyweights ITC and HDFC ended up over 1.4% each.

Wipro gained over 2% after it announced a partnership with Stibo Systems, a global leader in multi-domain Master Data Management (MDM) solutions. As part of the partnership, the two companies will collaborate to offer MDM solutions.

Coal India ended with marginal gains. The state-owned firm announced that it has fixed 9 September 2016 as the record date for the purpose of buyback of equity shares.

Mahindra & Mahindra rose over 1% after announcing the incorporation of a subsidiary company viz. Bristlecone Middle East DMCC, for providing business consulting, software implementation and related support services.

Cipla gained over 2%. Reports suggest that its US arm has received final approval from USFDA to market generic Bupropion Hydrochloride extended release tablets.

Bharti Airtel was the sole Sensex loser to end 2.9% lower on concerns that the sharp reduction in rates of prepaid internet data plans could hurt margins.

Among other shares, Gujarat Mineral Development Corporation surged over 8% after the company reported 60% year on year jump in net profit of Rs 115 crore for the quarter ended June 30, 2016 (Q1FY17), on the back of healthy operational performance.

TD Power Systems ended 2% higher after the company said that it has received an order for supply of 45 railway application generators from a major multi-national company (MNC) for installation in North America.

eClerx Services pared early gains to end 1.4% lower. The board approved a proposal for buyback of equity shares of the company at a price not exceeding Rs 2,200 per share through tender offer.

New Delhi Television Limited (NDTV) has dipped 4.5% on profit booking after Oswal Greentech on Monday, sold part of its stake in broadcasting company through open market.

Photograph: Punit Paranjpe/Reuters

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Tulemino Antao in Mumbai
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