Home Stock market Sensex gains 255 points ahead of Govt-FPI meeting; Autos rally

Sensex gains 255 points ahead of Govt-FPI meeting; Autos rally

Indices remained buoyed on Friday, ahead of the government’s meeting with foreign portfolio investors (FPIs) and representatives from the financial sector, which was scheduled later in the day. Sentiment was further strengthened on reports that government could approach the Goods and Services Tax (GST) Council to relieve the auto-industry from tax payment for three-six months along with measures to relieve real estate sector.

The benchmark S&P BSE Sensex soared 480 points intra-day to 37,807.5 level, while the Nifty50 zoomed 149 points to 11,181 mark.

At close, the Sensex settled 255 points, or 0.68 per cent, higher at 37,582 levels lifted by gains in auto and banking counters. Maruti Suzuki, Vedanta, Bajaj Finance, and HDFC Bank were the top gainers while YES Bank, Tech Mahindra, Tata Steel, and ITC were the top laggards. The broader Nifty50, too, ended at 11,110 mark, up 77 points, or 0.7 per cent.

Sectorally, metal, information technology (IT), pharma and public sector bank (PSBs) indices ended in the red while auto, private bank, realty, and FMCG scrips ended with gains. Nifty auto index was the top gainers, up 2 per cent, while Nifty metal index slipped 0.68 per cent.

In the broader market, the S&P BSE mid-cap index ended 104 points, or 0.77 per cent, higher at 13,670 level. The S&P BSE small-cap index, on the other hand, settled 125 points, or 1 per cent, higher at 12,699 level.

YES Bank was down 9 to Rs 81.20 in intra-day trade, slipping 12 per cent from its early morning high of Rs 92.40 on the BSE. The stock opened 2 per cent higher at Rs 91 against Thursday’s close of Rs 89.15. At the time of writing this report, it was trading close to its 52-week low of Rs 79.50 touched on August 5, 2019.

Low cost carrier (LCC) SpiceJet on Friday reported a standalone net profit of Rs 261.7 crore for the June quarter of financial year 2019-20 (Q1FY20), up 788 per cent as against the same quarter last year. The airline’s consolidated net profit stood at Rs 262.89 crore, The budget carrier’s total income came in at Rs 3,145.3 crore for the quarter ending June 2019.

Shares of five companies – Nestle India, Abbott India, Asian Paints, Berger Paints, and Pidilite Industries – from the S&P BSE 500 index hit their respective new record highs on the BSE on Friday after reporting good set of numbers for the April-June quarter of financial year 2019-20. Nestle India gained 4 per cent to Rs 12,266 apiece, surging 7 per cent during current week, after the company reported a 11 per cent year-on-year (YoY) rise in net profit to Rs 438 crore for the second quarter ended June 2019.

Shares of Endurance Technologies were up 17 per cent, intra-day, to Rs 869 on the BSE on Friday, after the company withdrew expansion plan of new business for manufacturing of tyres. On Thursday, the automotive component manufacturer’s stock tanked 20 per to Rs 743, its lowest level since March 30, 2017, after the company announced the expansion plan.

Britannia Industries on Friday reported a 3.64 per cent decline in consolidated net profit at Rs 248.64 crore for the quarter ended June 30, 2019. The company had posted a net profit of Rs 258.08 crore in the corresponding quarter of the previous fiscal. Total income during the period under review stood at Rs 2,767.8 crore, up 7.03 per cent, as against Rs 2,585.84 crore in the year-ago quarter, Britannia Industries said in a regulatory filing.

Shares of Page Industries hit an over two-year low of Rs 17,438, down 6 per cent intra-day on the BSE on Friday, after the company reported drop in net profit for the second quarter in a row, due to lower volume growth during April-June quarter (Q1FY20). The stock was trading at its lowest level since February 6, 2018.

NBCC (India) shares tumbled 14 per cent to Rs 34 apiece, trading near the stock’s five-year low price on the BSE on Friday on weak June quarter results. The state-owned construction & engineering company reported a 38 per cent drop in its consolidated net profit at Rs 51 crore in the June quarter (Q1FY20), due to poor performance by real estate segment. It had a profit of Rs 83 crore in the same quarter year ago.

Here are some picks from the week gone by.

Company: Vardhman Textiles CMP: 940.00 Mastermind