Markets continue record run on earnings boost; bank, power stocks climb

Covering-up of pending short positions on expiry of the July derivatives contracts and a strengthening rupee propped up the markets at high levels

Illustration: Uttam Ghosh/Rediff.com

Benchmark Sensex raced to record highs for the fourth session in a row on Thursday as robust June quarter results spurred share purchases amid encouraging global cues.

The 30-share BSE Sensex surpassed the 37,000-mark for the first time in history to touch a high of 37,061.62 (intra-day).

It finally ended 126.41 points, or 0.34 per cent higher at 36,984.64, smashing its previous record close of 36,858.23 reached on Wednesday.

The gauge has now gained 507 points in four days.

The NSE Nifty also hit a record intra-day high of 11,185.85, before finishing at a new peak of 11,167.30, up 35.30 points, or 0.32 per cent. It bettered its previous closing high of 11,134.30 reached on July 24.

Analysts said strong liquidity in the market following unabated buying by domestic investors and better-than-expected Q1 earnings by some index pivotals lifted the mood.

Covering-up of pending short positions on expiry of the July derivatives contracts and a strengthening rupee propped up the markets at high levels, they added.

European markets rose after the US and the European Union agreed to iron out their trade dispute through negotiations.

Meanwhile, on a net basis, domestic institutional investors (DIIs) bought shares worth Rs 97.64 crore, while foreign portfolio investors (FPIs) sold shares worth Rs 1,195.75 crore on Wednesday, provisional data showed.

"Better Q1FY19 results from heavyweights and outperformance of PSU banks coupled with appreciation in rupee supported the main indices to touch another high.

"Additionally, the prospects of consumption story on the back of reduction in GST rates and good monsoon is restoring investors' confidence in the market," said Vinod Nair, head of research, Geojit Financial Services.

SBI was the biggest gainer in the Sensex pack, surging 5.62 per cent, followed by ICICI Bank at 4.08 per cent.

Other winners were Power Grid 4.04 per cent, ONGC 1.98 per cent, Axis Bank 1.84 per cent, NTPC 1.66 per cent, Bharti Airtel 1.63 per cent, HDFC 1.17 per cent and Hero Motocorp 0.83 per cent, among others.

However, Maruti Suzuki lost the most, slumping 3.70 per cent, following lower-than-expected results.

Yes Bank lost 3.61 per cent, Asian Paints 1.08 per cent, L&T 1.06 per cent, TCS 0.81 per cent, Wipro 0.76 per cent and Vedanta 0.75 per cent, among others.

Pharma major Dr Reddy's reported a nearly eight-fold jump in consolidated net profit to Rs 456.1 crore for the first quarter of 2018-19, mainly on account of robust sales.

Engineering and construction conglomerate Larsen & Toubro (L&T) on Wednesday reported a 43.14 cent jump in consolidated net profit at Rs 1,472 crore for the June quarter.

Among the sectoral indices, power rose 1.44 per cent, bankex 1.43 per cent, finance 1.29 per cent, infrastructure 1.15 per cent, realty 0.73 per cent, healthcare 0.40 per cent, FMCG 0.23 per cent and oil & gas 0.18 per cent.

Metal, IT, teck, capital goods, consumer durables and auto indices succumbed to late selling and shed up to 0.68 per cent.

The broader markets displayed a firm trend as the BSE mid-cap index advanced 0.76 per cent and the small-cap gauge climbed 0.31 per cent.

Globally, Asian markets ended mixed and European shares rose after US President Donald Trump and European Commission chief Jean-Claude Juncker agreed to work towards easing trade tensions.

In Asia, Singapore inched up 0.05 per cent, Taiwan rose 0.41 per cent, while Hong Kong's Hang Seng dipped 0.48 per cent, Shanghai Composite Index shed 0.71 per cent and Japan's Nikkei fell 0.12 per cent.

Among European markets, Frankfurt's DAX soared 1.18 per cent and Paris CAC 40 was up 0.41 per cent in their early session. London's FTSE, too gained 0.26 per cent.