Sensex rallies over 250 points

 

Mumbai, Jul 4: The S&P BSE Sensex rallied over 250 points on Wednesday despite negative global cues. The Nifty50 reclaimed 10,700 levels and closed above its short-term moving averages such as 5-EMA, 13-EMA, as well as 50-EMA which is a bullish sign.
The index picked up momentum after the Union Cabinet approved the proposal to hike minimum support price (MSP) for all Kharif crops by 1.5 times of the input cost for the 2018-19 season, a move that is expected to boost farmers’ income.
The move is in line with the announcement made by Finance Minister Arun Jaitley in Budget 2018 of MSP 1.5 times the cost of production for the crops. The increased MSP is also seen as a step towards meeting the Prime Minister Narendra Modi’s promise to double farmer’s income by 2022.
“Despite negative global cues, the Indian equity benchmark indices showed firmness in Wednesday’s session, led by better than expected macro data and cabinet’s approval to raise MSP for Kharif crops,” Jayant Manglik, President, Religare Broking Ltd said.
“Throughout the day, markets remained volatile and the Nifty index swung both ways touching an intra-day low of 10,678 in the first half, however it bounced back smartly to touch an intra-day high of 10,777 before closing the session 0.7% higher at 10,770 levels,” he said.
The 30-share BSE Sensex gained 266.80 points at 35,645.40 and the 50-share NSE Nifty rallied 70 points to 10,769.90 but the market breadth was weak. About 1,338 shares declined against 1,256 advancing shares on the BSE.
The broader market indices, BSE Midcap & Smallcap, underperformed the benchmark. The sectoral indices exhibited a mixed trend, wherein Auto, Banks, and Healthcare were the top gainers up by 0.7-1.3 percent, while Power, IT and Consumer Durables were laggards.
Sectorally, the S&P BSE Auto index rose 1.3 percent, followed by the S&P BSE Healthcare index which gained 0.8 percent, and the S&P BSE Banking index was up 0.69 percent.
On the losing front, the S&P BSE IT index slipped 0.6 percent, and the S&P BSE Power index was down 0.54 percent, and the S&P BSE Consumer Durable index closed 0.51 percent lower.
Top Sensex gainers include stocks like Bajaj Auto, Maruti Suzuki, HDFC, HUL, and RIL.
Top Sensex losers include stocks like Vedanta, ONGC, Bharti Airtel, Tata Motors, Power Grid, and Infosys.
Stocks in news
Shares of agriculture-related stocks rose as investors were upbeat on government’s decision to hike minimum support price. Stocks such as Kaveri Seed, Mangalam Seeds, LT Foods, Kohinoor Foods, Chambal Fertiliser, Deepak Fertilisers, and RCF, among others, gained 1-10 percent.
Shares of Shriram Transport Finance Corporation took a hit on the back of concerns over payments of NCDs by its subsidiary. The stock closed 11.8% lower. As per the annual report released by the firm recently, the company has provided a guarantee of Rs 870 crore for non-convertible debentures (NCDs) issued by SVL, an unlisted entity belonging to the financial conglomerate.
Shares of Ducon Infratechnologies were locked at 20 percent upper circuit at Rs 22.80 following new orders for its US subsidiary. The company said its US subsidiary, Ducon Combustion Equipment Inc has received new orders of Rs 52 crore for two 50 MW packaged cogeneration plants from a major South Korean EPC company during the month of June 2018.
Unichem Laboratories share price rallied over 2 percent after the company received final ANDA approval for its Montelukast Chewable tablets, 4 mg and 5 mg from the United States Food and Drug Administration to market in the US.
Shares of Jiya Eco Products gained 14 percent after the company announced the set up of a new pellet plant. The management announced that its subsidiary company Jiya Eco Gandhidham Private Limited is setting up new pellet plant in 3 acres field at Chudva, Gandhidham.