Sensex settles 284 points higher as banks, FMCG stocks rally
The benchmark indices settled higher on Friday taking cues from their Asian peers.
The S&P BSE Sensex ended at 37,948, up 284 points while the broader Nifty50 index settled at 11,471, up 86 points.
Among key stocks, the fast moving consumer goods (FMCG) major ITC rose over 2 per cent to end at Rs 313 levels on the BSE. The stock hit a fresh 52-week high of Rs 315 earlier today. ICICI Bank and State Bank of India also ended higher in a range of 1.8 to 3.0 per cent on the BSE.
Among sectors, the Nifty Pharma index ended higher for the fourth straight day, hitting an over six-month high on the National Stock Exchange (NSE). Sun Pharmaceutical Industries, Dr Reddy’s Laboratories, Glenmark Pharmaceuticals, Lupin, Aurobindo Pharma and Cadila Healthcare from the index, were up in the range of 1 per cent to 4 per cent on the NSE.
Shares of paper companies were trading higher on the bourses on expectations of a positive outlook for the current July-September quarter.
Strong advertising growth, additional subscription revenue, launch of channels and entry into new markets could stem the tide for Sun TV Network, which has been impacted by stiff competition in its core markets.
Ashok Leyland has won an order of 300 double-decker buses from Bangladesh Road Transport Corporation (BRTC).
Shares of railways consultancy firm RITES hit a new high of Rs 315 per share on the BSE, rising 10% on the back of heavy volumes. The state-owned firm was trading at its highest level since listing on July 2, 2018. It has rallied 70% against its issue price Rs 185 per share.
Shares of pharmaceutical companies in focus with Nifty Pharma index was trading higher for the fourth straight day, hitting an over six-month high on the National Stock Exchange (NSE). Sun Pharmaceutical Industries, Dr Reddy’s Laboratories, Glenmark Pharmaceuticals, Lupin, Aurobindo Pharma and Cadila Healthcare from the index, were up in the range of 1% to 4% on the NSE.
The stock of PNB Housing Finance (PNB Housing) has declined by over three per cent after the company announced its June quarter results last week. Given the Street’s concerns on profit margins, the stock is likely to remain under pressure. While the company clocked strong growth in loan book (47 per cent year-on-year) and asset quality was also satisfactory (gross bad loans flat at the year-ago level of 0.43 per cent), a net interest margin (NIM) compression, amid lower spread, disappointed investors.
Shares of ITC hit a fresh 52-week high of Rs 315, up 2.5% on the BSE in early morning trade, extending gains of the past 4 weeks after the company’s June quarter net profit beat the Street estimates. The stock of fast moving consumer goods (FMCG) company was the largest gainer among the S&P BSE Sensex. It outperformed the market by surging 17% in past one month, as compared to a 4% rise in the benchmark index.