Indian Stocks Extend Gains Amid Positive Asian Cues and Strong Earnings Momentum

Strategic Insights -

Indian stocks maintained their positive trend on Friday, with the S&P BSE Sensex extending gains for a third consecutive day. The market, driven by strong earnings momentum and positive Asian cues, saw shares of major banks and companies surge in early morning trading. The government's approval for the recapitalization of public sector banks also boosted investor sentiment, leading to a significant increase in shares of state-owned banks. Earnings from major companies, such as ICICI Bank and Larsen and Toubro, were also anticipated to drive market sentiment. However, the market was also cautious about the impact of US economic data on global markets.

Key Takeaways:

  • The S&P BSE Sensex rose 409.21 points, or 1.48%, to 28,114.56, extending its gains for the third consecutive day.
  • Shares of state-owned banks surged, led by IDBI Bank, which rose 6.4%, and State Bank of India, which increased by 5%.
  • ICICI Bank shares gained 6.1% after the lender reported a 12.08% rise in net profit for the June quarter.
  • Sun TV Network shares rose 9% after the company posted a net profit of Rs.197.28 crore for the quarter ended June.
  • Hindustan Copper shares surged 10% after the government approved a plan to sell a 15% stake in the company.
  • The S&P BSE Sensex is now trading higher by 306.28 points, or 1.11%, to 28,011.63.
  • The CNX PSU Bank Index rose 3.3% after the government sought approval for an additional allotment of Rs.12,110 crore for the recapitalization of public sector banks.
  • The dollar index fell about 0.2% as the US dollar lost value against major currencies.
  • ICICI Bank expected to report a 10% rise in net profit to Rs.292 crore for the June quarter.
  • Larsen and Toubro is expected to report a profit of Rs.892 crore for the three months ended 30 June.
  • Dr. Reddy's Laboratories reported a 14% rise in fiscal first-quarter profit to Rs.343.40 crore.
  • The yield on India's 10-year benchmark bond is trading at 7.825% compared with its Thursday's close of 7.824%.
  • The Indian rupee opened at 64.09 per dollar, but is now trading little changed at 64.05 per dollar, down 0.01% from its previous close of 64.04.
  • US crude oil slipped 2 cents to $48.50 per barrel, after ending the previous session down 27 cents.
  • Brent crude oil for September delivery rose 12 cents to $53.43 after settling 27 cents lower in the previous session.

Statistics:

  • The S&P BSE Sensex rose 409.21 points, or 1.48%, to 28,114.56.
  • The CNX PSU Bank Index rose 3.3% after the government sought approval for an additional allotment of Rs.12,110 crore for the recapitalization of public sector banks.
  • ICICI Bank shares gained 6.1% after the lender reported a 12.08% rise in net profit for the June quarter.
  • Sun TV Network shares rose 9% after the company posted a net profit of Rs.197.28 crore for the quarter ended June.
  • Hindustan Copper shares surged 10% after the government approved a plan to sell a 15% stake in the company.
  • The dollar index fell about 0.2% as the US dollar lost value against major currencies.

Sources:

  • Published by HT Syndication with permission from MINT.
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