Rediff.com  » Business » Bankruptcy bill passage enthuse markets; Nifty settles at 7,900

Bankruptcy bill passage enthuse markets; Nifty settles at 7,900

By Indrani Mazumdar
Last updated on: May 12, 2016 17:57 IST
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The Bull statue at the Bombay Stock Exchange

 

After a dismal trading session yesterday, markets bounced back today owing to a spectacular rally in bank stocks after the Rajya Sabha passed the Bankruptcy Bill.

In the banking pack, ICICI Bank, SBI, IndusInd Bank, HDFC Bank and Bank of Baroda surged between 0.2%-4% to the passage of Bankruptcy Bill, which aims to complete the insolvency process of companies in 180 days, helping lenders in faster recovery of their loans.

The S&P BSE Sensex surged 193 points to close at 25,790 and the Nifty50 climbed 52 points to end at 7,900.

“Markets are likely to witness an uptick with reports suggesting that monsoons are expected to be better this year after two consecutive droughts.

"The sentiments are highly skewed towards the sectors to be positively impacted if this scenario plays out.

"Meanwhile, the results have been quite reasonable so far and have met street expectations on most counts.

"We might have witnessed a few misses in terms of margin disappointments, tepid guidance given by few companies but largely not too disappointed,” said Mayuresh Joshi, Fund Manager, Angel Broking.

Major Asian equities closed mixed, following a decline in the US stocks after some of the notable retail companies posted dismal earnings.

In Asia, Japan’s Nikkei and Singapore’s Straits Times gained between 0.4%. However, Hong Kong’s Hang Seng dipped 0.7%.

Also, European markets are trading mixed on disappointing earnings and a drop in U.S. stocks in the previous session. CAC 40 and DAX have gained 0.4% while FTSE 100 has shed 0.1%.

Meanwhile, oil prices remain firm helped by a sudden dip in US crude inventories and a tightening global market.

BSE graphINDEX MOVERS

Asian Paints jumped over 2%, after its March quarter earnings beat Street estimates. Asian Paints' sales volume grew 13% in Q4.

Dr Reddy's Laboratories rose 3.4% after consolidated net profit fell 85.62% to Rs 74.60 crore on 2.47% decline in total income to Rs 3786.90 crore in Q4 March 2016 over Q4 March 2015.

Bharti Airtel has launched new pre-paid data packs in Mumbai that offer double data benefits to customers.

Currently, the Rs 296 pre-paid data pack offers 1GB of 3G/4G data with a validity of 28 days.

The stock climbed 0.9%.

Meanwhile, capital goods majors L&T and BHEL ended 0.4%-0.5% ahead of the IIP numbers due to be released later today.

Hindalco Industries rose 2% extending yesterday's gains triggered by the company's subsidiary Novelis reporting good Q4 earnings.

Apollo Tyres reported 20.26% decline in its consolidated net profit at Rs 245.16 crore for the fourth quarter ended March 31, 2016, hit by import of Chinese tyres into the country.

However, the stock rebounded from the day’s low and closed 3% higher.

Jubilant Life Sciences rose over 2% after the company said on Wednesday that its unit Jubilant DraxImage Inc. (JDI) and Australia-based Cyclopharm Ltd had mutually terminated a pact under which JDI was to get exclusive commercial rights to a CYC product in the US market.

Rajesh Exports surged 3.7% after the company said in a notice to BSE that its board will meet on 13 June to consider acquisition in Middle east.

Cairn Energy Plc of the UK has offered to pay 15% of the Rs.10,247 crore principal amount in return for government lifting freeze on the 9.8% shares it holds in its erstwhile subsidiary, Cairn India Ltd. Cairn India and Vedanta gained 0.8% and 3%, respectively.

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Indrani Mazumdar in Mumbai
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