Stocks scale record high on better-than-expected results

The 50-issue index finally closed higher by 26.30 points or 0.23 per cent at a historic high of 11,387.10, bettering its previous record close of 11,360.80 hit on Friday.

According to brokers, fresh buying by domestic institutional investors (DIIs) and better-than-expected June quarter results from some blue-chip companies boosted the investor sentiment. “Buoyancy in earnings led the market to touch new high while weak global cues and volatility in rupee influenced profit booking in the latter half. PSU banks outperformed on expectation of improving asset quality,” said Vinod Nair, head of research, Geojit Financial Services.

Axis Bank was the top gainer in the Sensex pack, surging by 3.86 per cent. ICICI Bank rose 3.36 per cent, SBI by 3.33 per cent and Yes Bank by 1.32 per cent. Other banking stocks, Punjab National Bank 2.15 per cent, Federal Bank 1.66 per cent and Bank of Baroda 0.74 per cent. Bharti Airtel rose by 3.07 per cent after announced a strategic partnership with Telecom Egypt for global submarine cable systems. Reliance Industries rose further 1.25 per cent, continuing its winning run after its stellar quarterly results and a favourable award from an arbitration panel in a gas row with the government.

Auto stocks also posted gains with Hero Motocorp rising 1.72 per cent, M&M by 1.46 per cent, and Maruti Suzuki by 1.08 per cent. Coal India gained 1.56 per cent, Vedanta 0.97 per cent, NTPC 0.06 per cent and HDFC 0.06 per cent. Oil and Natural Gas Corp’s (ONGC) rose by 1.44 per cent after Moody’s Investors Service said the state-owned firm’s highest ever pre-tax quarterly profit provides cash flow to reduce borrowings.

Kotak Bank fell the most by 1.7 per cent, followed by Hindustan Unilever which dropped 1.65 per cent due to profit booking. Sun Pharma fell by 1.58 per cent after a US drug recall while Tata Motors fell 1.57 per cent due to weak global sales numbers. ITC, HDFC Bank, IndusInd Bank and Asian Paints also declined up to 1 per cent.

Analysts said a respite was seen in mid and small cap stocks as worst of earnings seem to be over and investors are gradually turning positive with a bottom-up approach. The S&P BSE Small-Cap index was up 0.39 per cent. The S&P BSE Mid-Cap index was up 0.26 per cent. Both these indices outperformed the Sensex.

Among sectoral indices, bankex index rose the most by surging 1.11 per cent, followed by telecom 1.11 per cent, energy 0.98 per cent and PSU 0.87 per cent.

Metal index gained 0.77 per cent, finance 0.60 per cent, auto 0.41 per cent, infrastructure 0.40 consumer durables 0.27 per cent, power 0.23 per cent, capital goods 0.09 per cent and oil & gas 0.05 per cent. While realty index down 0.59 per cent, healthcare 0.42 per cent, FMCG, 0.34 per cent and IT by 0.24 per cent.

Reliance Communications rose 4.65 per cent after the Supreme Court cleared a settlement between RCom and the Indian unit of Swedish telecom equipment maker Ericsson AB. HDFC Asset Management Company made a blockbuster debut at the bourses with its shares surging 65 per cent, against the issue price of Rs 1,100 per share.