Markets snap 4-day losing streak on Clinton’s victory hopes

Benchmark share indices snapped a four-day losing streak amid a rally in global stocks after the FBI’s clean chit on the alleged email scandal boosted her prospects in the race to the White House.

The S&P BSE Sensex ended up 185 points at 27,459 and the Nifty50 ended up 63 points at 8,497. In the broader markets, the BSE Midcap and Smallcap indices gained between 0.6%-1.2% each. Market breadth ended strong with 2001 gainers and 873 losers on the BSE.

“Indian markets rose in line with positive global markets, in a clear sign that financial market’s near term direction is closely intertwined with US electoral developments. PNB’s numbers showing improvement in asset quality have allowed banking sector to lead the rally, and at least temporarily forget NPA worries, but with ICICI Bank and SBI’s figures expected shortly results, caution continues to remain the watchword. UK court’s ruling over Brexit looks to have complicated trade negotiations, and not surprisingly, Pound’s recovery was short lived, and IT stocks look to continue under pressure.” said Anand James, Chief Market Strategist, Geojit BNP Paribas Financial Services

Foreign institutional investors were net sellers in equities worth Rs 343 crore on Friday, as per provisional stock exchange data.

Global Markets

Asian shares ended higher on Monday after reports suggest that the FBI that it has not changed its view on the closure of the investigation into the alleged email scandal of Democratic presidential candidate Hillary Clinton after its review of new emails. Stocks in Japan were the top gainers in the region with the benchmark Nikkei up 1.6% followed by Straits Times and Hang Seng which gained 0.4%-0.7% each while China’s Shanghai Composite ended up 0.3%.

European stocks surged on Monday after the latest developments indicated that Hillary Clinton was seen leading her rival in the race for the Presidency after the FBI following an investigation cleared of the alleged email scandal. The CAC-40, DAX and FTSE-100 were up 1.4%-1.8% each. Meanwhile, the Dow futures were trading higher.

Index Stocks

Lupin ended up 7% after the pharma major said that it has received Establishment Inspection Report (EIR) from the US health regulator for its Goa plant leading to closure of all outstanding inspections of the facility.

Sun Pharma and Dr Reddy’s Labs gained over 0.4% each. In the broader markets, Glenmark Pharma, Aurobindo Pharma, Neuland Labs, Dishman Pharma, ended up over 3% each.

PNB ended nearly 7% higher post the strong India Business News listing of its housing finance arm.

PNB Housing Finance ended up 15% at Rs 891. Earlier, the stock had listed at Rs 863 on the BSE, an 11% premium over its issue price of Rs 775 per share. PNB Housing Finance, promoted by Punjab National Bank (PNB), raised Rs 3,000 crore through initial public offer (IPO). The issue was oversubscribed 29.55 times at a price band of Rs 750-775 per share.

ICICI Bank ended up 3% ahead of its second quarter earnings due for release today.

ITC extended gains and ended nearly 3% higher after the Goods and Services Tax (GST) Council’s propose to place tobacco products in the 28% tax slab and an additional cess. The current rate of taxation on cigarettes is around 64% and 81% on chewing tobacco.

Broader Markets

Nilkamal dipped 7% after the company’s net profit was flat at Rs 26.33 crore for the quarter ended September 30, 2016 (Q2FY17), due to lower volume growth. The plastic products maker had posted a profit of Rs 26.12 crore in the same quarter last fiscal.

Shares of Dalmia Bharat Group companies OCL India and Dalmia Bharat ended higher by up to 4% on BSE after their respective boards approved the merger of the two firms in an effort to simplify the group structure.

Seshasayee Paper & Boards jumped 12.7% after the company reported an over four-fold jump in net profit at Rs 30.70 crore for the quarter ended September 30, 2016 (Q2FY17), due to lower raw material and finance cost. The company had posted a profit of Rs 7.19 crore in the same quarter last fiscal.

Crompton Greaves surged 12% after the company announced that it has received a binding offer for acquisition of its B2B Automation business from Alfanar.

Heritage Foods ended 10% higher on BSE on back of heavy volumes after a media report suggests that Future Group to announce acquisition of the company’s retail outlets today.

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Markets snap 4-day losing streak on Clinton’s victory hopes

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