Sensex ends at fresh closing high of 38024

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Mumbai, Aug 9: Looks like there’s no stopping the bulls. Not only are they in the driver’s seat for August 2018, they are ensuring that the car is in for a long drive.
They ensured that even after the Sensex clocked a fresh milestone of 38,000 on Thursday morning, it closed the day above this mark. The Nifty, too, wasn’t very far behind and ended at 11,470-mark. The levels are new all-time closing highs for both the indices. It has been a rather ‘august’ performance by the market in 2018, with the indices having gained around a percent so far in this month. Banks led the rally for equity benchmarks, with major gains coming in from PSU banks. The Bank Nifty ended around a percent higher.
Investors are possibly hopeful of stellar June quarter numbers from State Bank of India on Friday and hence placed big bets on the stock. This fuelled the upmove in banks in general. Additionally, buying counters were also buzzing in ICICI Bank and Axis Bank, which helped the market climb to new highs on Thursday.
Metals also offered some support to the market, with the Nifty Metal index ending over a percent higher. Gains in Vedanta boosted the index. A strong upmove was visible among midcaps as well, as the midcap index ended higher by over half a percent.
The day began on a strong note as the Sensex hit 38,000 in the opening tick, while the Nifty almost touched 11,500. The 50-share managed to hit an intraday high of 11,495.2. The rally in banks continued through the day, while pharmaceuticals took a U-turn after the upmove in the morning. At the close of market hours, the Sensex ended up 136.81 points or 0.36% at 38024.37, while the Nifty closed higher by 21.60 points or 0.19% at 11471.60. The market breadth was, however, narrow as 1,336 shares advanced, against a decline of 1,327 shares, while 148 shares were unchanged.
ICICI Bank, Axis Bank and SBI were the top gainers, while Bharti Airtel, ONGC and Titan were the top losers. Shares of ONGC saw some profit booking post Wednesday’s move.
Stocks in news
Share price of Selan Exploration Technology gained 5.5 percent as investor Dolly Khanna has purchased over 1 lakh shares of the company on Wednesday. The investor purchased 1,04,250 shares at Rs 244.03 on NSE, bulk deals data released by the exchanged revealed. The purchase is worth Rs 2.54 crore.
Private lender ICICI Bank’s share gained 4.6 percent after media reports suggested that the bank has clarrified about the bad loans of the company. The foreign research house Morgan Stanley has preferred the bank as its top pick in Asia financials. Reserach house has kept overweight rating with a target of Rs 460 as the valuation is looking attractive.
Drug maker Lupin fell 0.6 percent, after the global brokerage house Credit Suisse has downgraded the stock to Underperform from Neutral after weak earnings for the quarter ended June. The research house also slashed its target price to Rs 715 form Rs 770 per share following cut in FY19/20 EPS estimates by 23/12 percent. Shares of Page Industries touched 52-week high of Rs 32,750 after the company reported strong numbers for the quarter ended June 2018. The company’s Q1 FY19 net profit jumped 46 percent at Rs 124.4 crore against Rs 85.3 crore in same quarter last fiscal. The stock closed 7.06% higher.
Shares of HT Media gained 2.1 percent as the board of the company approved demerger of its FM Radio business. The board of directors of the company in its meeting held on August 8 have considered and approved the draft of the composite scheme of arrangement and amalgamation amongst HT Media, Next Radio, Next Mediaworks and HT Music & Entertainment Company and their respective shareholders.
Global update
Markets in Europe fell as investors turned cautious of intensifying trade war tensions between US and China. Developments around corporate earnings also kept investors on their feet. Stoxx 600 was off by 0.3 percent.
Meanwhile, Asian equities closed mostly higher even as Chinese indices ending over a percent higher. The Shanghai composite rose 50.64 points, or 1.85 percent, to 2,794.71 and the Shenzhen composite added 38.93 points, or 2.66 percent, to 1,505.63.