RTTNews - Monday, the Indian market is trading sharply higher on hopes about earnings upgrades and a re-rating of PE multiples for many blue-chip companies on the back of a decisive election verdict and accelerated reforms expected over the next few moths. Favorable cues from the overseas markets also helped boost investor sentiment.
The BSE Sensex opened higher at 14,746 and rose further in early trading. The index is now trading at 14,823, up 198 points or 1.35% from its previous close. The S&P CNX Nifty is trading at 4,525, up 1.71%. Second-line stocks are outperforming the benchmarks. The market breadth on the BSE is extremely positive, with 1953 advancers compared to 372 stocks that are declining.
Among the major gainers, Jaiprakash Associates is surging up 5.88%, Reliance Communication is rising 4.64%, ACC is up 3.88%, Tata Steel is moving up 3.62% and Sterlite Industries is up 3.26%. DLF, HDFC, Reliance Infrastructure, Grasim Industries, Mahindra & Mahindra, Hindalco and Maruti Suzuki are the other prominent gainers.
On the other hand, ICICI Bank is losing 1.47%, Bharti Airtel is down 1.30%, State Bank of India is moving down 0.86%, Ranbaxy Laboratories is declining 0.82%, Hindustan Unilever is edging down 0.09% and HDFC Bank is trading almost flat.
Sector-wise, realty, metal, power and IT stocks are leading the gainers, but banking stocks are coming under selling pressure. Auto, FMCG and capital good stocks are showing modest gains.
Oil explorer Reliance Industries is up 0.89%, Cairn India is rallying 6.61% and ONGC is rising 1.02% after crude oil futures hit a fresh seven-month high in Asian trading on Monday. Great Offshore is adding 4% after Bharati Shipyard's board of directors decided to make an open offer for another 20% equity stake in the offshore service company.
State-run oil firms HPCL, BPCL and IOC are trading firm after they hiked jet fuel or ATF prices marginally by Rs.108 per kilolitre on Sunday. NTPC is rallying 6.08% on reports that it will invest Rs.550 billion in the next three years.
Mahindra & Mahindra is gaining 2.29% on reports about a major revamp at its tractor business. Sun Pharma is adding 2.50% despite reporting a 45% drop in its fourth quarter net profit
Indiabulls Real Estate is up 1.36% on reports that it has decided to write-off the entire investment in its retail arm Indiabulls Retail Services. Lanco Infratech is losing 1.77% on reporting a net profit of Rs.119.38 crore for the quarter ended March compared to Rs.109.99 crore in the same quarter last year.
Multiplex operators such as Pyramid Saimira and PVR are jumping nearly 5% each on hopes that a standoff between movie producers and multiplexes would be resolved before June 12. Ramco Systems is losing 2.25% after it has withdrawn a proposed rights issue.
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