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Thursday 14 April 2016

Blockbuster week: Monsoon outlook, global cues lift Sensex 963 points higher


Benchmark indices posted stupendous gains in a holiday-shortened week with a rise of around 4 per cent (in three trading sessions) supported by good monsoon forecast and favourable macroeconomic data.
In the truncated trading week to April 14, the 30-share Sensex ended up 953 points or 3.86 per cent at 25,627 and the 50-share Nifty50 ended up 295 points or 3.9 per cent at 7,850.
Among broader market, the BSE Mid-cap Index gained 3 per cent, while the Small-cap Index surged 2.6 per cent, underperforming the benchmark indices.
Meanwhile, foreign investors were net buyers in equities to the tune of Rs 1,059 crore during the week, as per provisional stock exchange data.  

Stocks in action

Auto stocks accelerated during the week with the Nifty Auto index touching over four month high after "above average" monsoon forecast by the Indian Metrological Department (IMD) raised expectations of higher demand going forward.

Tata Motors was the top gainer of the week ending around 10 per cent higher on robust JLR sales. JLR's volumes grew 29 per cent year-on-year, with China sales up 43 per cent (about half came from the China joint venture).

Maruti Suzuki surged around 9 per cent on renewed buying interest after the sharp correction last week on concerns that the rising yen would hurt margins.

Hero MotoCorp was up almost 8 per cent. The two-wheeler major has submitted plans to begin production at its proposed plant in Chittoor district in the state of Andhra Pradesh.

BSE Bankex surged almost 5 per cent during the week after IIP growth of 2per cent in February 2016 raised expectations of pick-up in credit growth going forward.

ICICI Bank, Axis Bank, SBI, Bank of Baroda and PNB spurted between 4 per cent-9 per cent.

Axis Bank reduced the base rate by 5 basis points to 9.45 per cent from 9.50 per cent effective April 18. Axis Bank gained over 4.5 per cent.

From the IT space, Infosys rose marginally ahead of Q4 March 2016 result on Friday. Wipro gained around 7 per cent after India's third largest software exporter announced that it will consider a proposal to buy back shares of the company on April 20.

Tata Steel inched up by over 3 per cent. Liberty House Group expects Tata Steel to set an end of May bid deadline for the sale of its UK steel assets and said his firm wouldn't need financial backers to make an offer.

Bharti Airtel increased over 5 per cent after the company announced that it would pay Rs 3500 crore to acquire rights to use 4G spectrum of Aircel in eight telecom circles.

Coal India slipped by over 1 per cent that its board of directors has accorded its approval for giving up performance incentive for supply of higher grades of coal in the model fuel supply agreement for power and non-power sector with immediate effect with a view to improve lifting of coal.






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