NEW DELHI: The domestic equity market made a promising start to the new financial year on Monday, with headline indices Sensex and Nifty gaining nearly 1 per cent on Monday, amid solid buying in auto and IT sectors.
The market rallied on account of stellar auto sales and value buying in pharma stocks influenced by US FDA approvals, said Vinod Nair, Head of Research, Geojit Financial Services.
US stock futures dropped and other Asian markets reversed early advances, where volume was low as many markets remained closed. Markets are expected to remain choppy and support levels are likely to be tested globally due to looming uncertainty. Back home, investors are focusing on forthcoming RBI money policy, while consensus shows the central bank will maintain status quo on rates due to declining bond yield and inflation, Nair said.
Here's a look at the key developments/events that caught investors' fancy all through Monday:
ICICI Bank under a cloud, stock tanks 6%
ICICI Bank dropped 6 per cent after reports that CBI would soon call Videocon Chairman Venugopal Dhoot and ICICI Bank chief Chanda Kochhar's husband Deepak Kochhar for examination in the loan transaction case. The agency, which is likely to examine Chanda Kochhar soon, may also call officials of other banks in the 20-member consortium, ET reported quoting sources.
Axis Bank sheds 2%
Shares of Shikha Sharma-led private lender ended over 2 per cent lower after reports the Reserve Bank of India (RBI) has asked bank's board to reconsider the fourth three-year term it gave CEO Shikha Sharma last year. The regulator addressed the letter to Axis Bank chairman Sanjiv Misra and gave its reasons for urging a review. These included the banks performance and its deteriorating asset quality.
Steel Strips Wheels on a roll
Shares of the automotive steel wheels manufacturer spiked over 5 per cent to Rs 1,110.05 apiece after the company achieved wheel rim sales of 13.24 lakhs against 12.68 lakhs in March 2018 representing a growth of 5 per cent YoY.
Down and Out
Shares of educational service provider CL Educate plunged 10 per cent to settle at 169 after large number of shares changed hands last Wednesday in bulk deals. BNP Paribas Arbitrage bought 1 lakh shares or 0.7 per cent equity at Rs 190.5 each. While, Macquarie Emerging Markets Asian Trading sold 1 lakh shares 0.7 per cent equity at Rs 190.5 each, said an IIFL report.
Spurt in open interest
Hexaware Tech witnessed the biggest spurt in open interest at 66.47 per cent, followed by Just Dial (42.30 per cent) and Can Fin Homes (41.53 per cent).
2nd tranche of Bharat-22 ETF
The government plans to hit the market with the follow-on offer of Bharat-22 ETF after the blockbuster performance in the first tranche, with ICICI Prudential Mutual Fund filing draft papers for the second round. READ MORE
New kids on the bloc disappoint
Two companies, Sandhar Technologies and Karda Constructions listed their shares on bourses today. After listing at 4 per cent premium, shares of Sandhar Technologies slipped in the trade and ended 3 per cent lower at Rs 321. Karda Constructions made a listless debut and ended 21 per cent lower at Rs 142.80 on NSE against issue price of Rs 180.
Infra stocks on a high
Reliance Infra bagged Rs 441 crore EPC contract from government. Shares of the company gained 4 per cent to end at Rs 443.65. RPP Infra Projects closed 3 per cent higher after the company won order worth Rs 234 crore. This apart, Dilip Buildcon climbed 11 per cent after Bank of America Merrill Lynch (BofAML) initiated coverage on the stock with Buy rating, citing superior execution to underpin a scaling up.
Broader market outperforms
The S&P BSE SmallCap surged 2.35 per cent to settle at 17,394.27 with Jay Bharat Maruti (up 20 per cent) being the top gainer and Can Fin Homes (down 11 per cent) the worst laggard. The S&P BSE MidCap added 1.40 per cent to 16,186.32.