Sensex ends higher by 265 points; Banking, Metal stocks gain

A day after global and domestic cues heavily dented investors' sentiments, the Indian stock market ended with handsome gains on Thursday amid positive global cues.

Finally, a late bout of buying across metal, banking, power, realty, pharma, telecom and utilities stocks lifted the benchmark although the auto and IT counters continued to trade soft. However, the key benchmark came off day's high in the last hour of trade on further selling in Infosys and HDFC.

Finally, the BSE Sensex ended with a gain of 265 points at 27,518. It opened at 27,605, touched an intra-day high of 27,743, and hit a low of 27,457.

The NSE Nifty closed with a gain of 87 points at 8,519. It opened at 8,556, hitting a high of 8,598 and low of 8,511.

Market sentiment also got a boost after global investors turned hopeful about generous tax cuts and higher infrastructure and defence spending in the US following Donald Trump's victory.

Among the 50 stocks of the Nifty, Tata Steel, Bank of Baroda, Hindalco, SBI, Cipla, Bharti Infratel and Yes Bank were among the gainers, whereas Asian Paints, Hero MotoCorp, HDFC, Bajaj Auto, Lupin and Bosch were among the losers today.

The India VIX (Volatility) index was down 6.99% at 15.4575. Out of 1,401 stocks traded on the NSE, 253 declined and 1,124 advanced today.

The rupee was trading up by 13 paise at 66.56 per US dollar.

Asian shares rebounded on Thursday and the dollar firmed after global markets made a remarkable comeback from the shock of Republican Donald Trump's presidential victory, dumping safe-havens for the tempting returns of risk assets. Hong Kong's Hang Seng was up 1.89% and Japan's Nikkei closed soared by 6%, however, Shanghai Composite Index gained 1%.

In Europe, the FTSE 100 and CAC 40 were trading higher by 1%, while DAX advanced 0.96%.

Banking sector stocks closed higher as banks are expected see improved liquidity when people start tendering cash after the government decided to withdraw 500 and 1,000 rupee notes. PNB zoomed 12%, BoB climbed 9%, while SBI rallied 8.4% on the BSE.

Financial stocks were among the biggest percentage gainers on the NSE index today as investors welcomed the government's decision to withdraw higher denomination banknotes. The BSE Finance index closed 2.4% higher.

Bank of India surges 13% after the bank posted a net profit of Rs 127 crore for the quarter ended September 30, 2016 compared to a net loss of Rs 1,126 crore for the quarter ended September 30, 2015.

Lupin slipped 2%. Lupin reported its profit surged 58% from a year ago on strong sales growth in the US, the drugmaker’s biggest market. Net profit at India’s third largest drugmaker rose to Rs 662 crore for the quarter.

Dhanuka Agritech rallied 7% after the net profit for the quarter came in at Rs 49.21 crore as compared to Rs 37.7 crore in the corresponding period last year. The company’s total income from operations was at Rs 310 crore as against Rs 270 crore last year.

Fortis Healthcare dropped 1.4% after the company posted a net profit of Rs 38 crore for the quarter ended September 30, 2016 as compared to Rs 61 crore for the quarter ended September 30, 2015.

Bajaj Electricals dropped 5.6%. The company posted a net profit of Rs 16.7 crore for the quarter ended September 30, 2016 as compared to Rs 18.7 crore for the quarter ended September 30, 2015.

Motherson Sumi Systems rallied 6% after the company posted a net profit of Rs 480 crore for the quarter ended September 30, 2016 as compared to Rs 380 crore for the quarter ended September 30, 2015.

A total of 45 stocks registered a fresh 52-week high in trade today, whereas seven stocks touched a new 52-week low on the NSE.

Nifty trades above 8,550 mark; Banking, Metal stocks gain

The Indian stock market gained the most in nearly 1-month, following a rebound in Asian markets after their steepest slide since Brexit, on speculation that U.S. President-Elect Donald Trump will pursue business-friendly policies. Nifty Realty index surged 4.5% after losing more than 10% on black money crackdown. Nifty Bank hits 20K for the first time since September 23, 2016. 

At 10:27  AM, the S&P BSE Sensex is trading at 27,638, up 385 points, while NSE Nifty is trading at 8,567  up 135 points. The BSE Mid-cap Index is trading up 2.14% at 12,994 whereas BSE Small-cap Index is trading up 2.71% at 13,04625.

Tata Steel, Cipla, SBI, Bharti Airtel and Sun Pharma are among the gainers, whereas Infosys, Godrej Properties, Redington and Prestige estates are losing sheen on BSE.

All the BSE sectoral indices were trading in the positive territory. Some buying activity is seen in metal, telecom, auto, banking, basic materials and pharma sectors.

The INDIA VIX is down 8.25% at 15.2475. Out of 1,874 stocks traded on the NSE, 136 declined, 1,417 advanced and 321 remained unchanged today.

A total of 18 stocks registered a fresh 52-week high in trade today, while four stocks touched a new 52-week low on the NSE.

The rupee opened lower at 66.39/$ as against the previous close of 66.42/$.

Asian markets opened deep in the green as oversold indices saw short covering coupled with fresh buying as the Dow Jones index touched new highs. This after huge intraday swings with US futures hitting lows of -800 points at one time. Bond yields on the US 10 year paper hit over 2% as optimism on growth with infra spending rising saw the yields near 9 month highs.         

The markets have been roiled for some time ever since the chances of a Trump victory surfaced though major bets remained on Hillary who eventually had to concede defeat. For now, Trump’s acceptance speech suggests he has indeed left the campaign ‘trumpisms’ aside and is set to usher in a new world order. The US markets may not have saluted his victory on Wednesday but he is known to be a friend of Wall Street.

Bonds and Gold which saw some smart up move failed to maintain their gains. Banks in India are stepping up activity to help cope with disruption caused by the withdrawal of Rs 500 and Rs 100 currency notes. While a lot of people are finding ways and means to change their high value notes, expectations are that earnings recovery could be pushed a few quarters further.