Sensex ends above 29,000; SBI jumps 8%, M&M up 5%

Benchmark indices continued their winning streak for the fourth consecutive session after managed to stem rise in bad loans in its fiscal third quarter and reported 30% increase in net profit for the December ended quarter.

Further, better than-expected quarterly earnings posted by blue chip companies including Cipla and M&M amid firm global cues boosted the trading sentiments.

The Sensex ended 290 points higher at 29,095 mark and the Nifty gained 94 points to close at 8,806 levels.

The broader markets underperformed the benchmark indices- BSE Midcap and Smallcap indices were up between 0.3-0.8%.

Meanwhile, foreign portfolio investors sold shares worth a net Rs 406.28 crore yesterday, as per provisional data.

On the currency front, the rupee pared its early gains, but was still higher by 14 paise against the US dollar at Rs 62.14 in the noon trade today on sustained bouts of dollar selling by banks and exporters.

On the global front, European shares firmed up after German economy grew by a robust 0.7% in the last quarter of 2014, well above forecasts. CAC, DAX and FTSE are trading higher between 0.5-0.8%.

Back home, Consumer Price Index (CPI)-based inflation rose in January compared to December, another set of data showed while the Industrial growth slowed to 1.7 per cent in December from 3.9 per cent in November, owing to low consumer durable goods and mining output.

The Reserve Bank of India has set a target of restricting inflation to eight per cent by January 2015 and six per cent in January 2016.

KEY STOCKS

On the sectoral front, 10 out of 12 indices ended in the positive territory with BSE FMCG index leading the rally up nearly 2% followed by BSE Healthcare, Banks, Auto and Metal indices, all gained over 1% each.

However, BSE Realty was the top losing index down nearly 1% followed by BSE Oil & Gas index down 0.4%.

Shares of pharmaceutical companies were in demand and ended higher by up to 10% on the bourses after reporting a good set of numbers for the quarter ended December 2014 and expectation of strong export growth backed by better regulatory compliance track record and patent expiry.

Sun Pharmaceutical Industries, Cipla ans Dr Reddy’s Lab were up between 0.2-1% on the BSE.

Cipla gained 0.6% after the company, through its UK-based subsidiary Cipla (EU) Limited, entered into a joint venture (JV) agreement with Cipla’s existing business partners in Morocco – Societe Marocaine De Cooperation Pharmaceutique (Cooper Pharma) and the Pharmaceutical Institute (PHI).

Among banks, SBI was the top Sensex gainer.

Shares of State Bank of India (SBI) rallied 8% to Rs 308 after the state-owned bank said its gross non-performing assets (NPA) as a percentage to total advances rose marginally at 4.90% as on December 31, 2014 (Q3FY15) compared to 4.89% in September quarter.

Gross NPA stood at 5.73% at the end of December 2013 quarter.

ICICI Bank and Axis Bank gained up to 1.3% on hopes that slowing IIP will boost pressure on the central bank to cut interest rates.

From the auto space, M&M surged almost 5% post the announcement of Q3 numbers. The company reported a consolidated net profit of Rs 930.32 crore for fiscal third quarter, down 24% compared to Rs1,230 crore in the year-ago period.

Tata Motors, Maruti Suzuki, Baja Auto and Hero Motocorp gained between 0.5-2%.

Tobacco-to-FMCG major ITC gained 2%. The company has entered into an agreement with health and pharma major Johnson & Johnson (J&J) to buy two of its brands- Savlon antiseptic soap and liquids, and Shower to Shower talcum powder.

Coal India increased by 2%. The company recorded a 16% fall in its consolidated net profit to Rs 3,262 crore for the December quarter. The net profit in the year-ago quarter was Rs 3,894 crore.

The net sales during the quarter under review stood at Rs 17,763 crore – a 5% rise over Rs 16,928 crore in the year-ago period.

Tata Steel gained 0.4% after the company decided to acquire three service centres in Sweden, Finland and Norway from rival SSAB to strengthen its offering to manufacturers in the Nordic region.

Other notable gainers were TCS, Wipro, L&T and Reliance up between 1-3%.

Hindalco ended with marginal gains after it reported a stand-alone net profit of Rs 359 crore in the December quarter, up 7.25 per cent from last year as sales grew faster.

On the flip side, shares of Bharat Heavy Electricals Limited (BHEL) ended lower by 3% after reporting a disappointing set of numbers for the quarter ended December 2014 (Q3).

Oil and Gas major ONGC lost 2% on caution ahead of the quarterly results due tomorrow.

GAIL, HDFC Bank, Infosys and Sesa Sterlite were the other prominent losers and shed between 0.5-4% on the BSE.

The market breadth ended marginally positive with 1,448 advances against 1,427 declines.