Sensex, Nifty end 1% higher ahead of January F&O expiry

In the broader market, BSE Midcap and BSE Smallcap indices mirrored the gains in headline indices and rose 1% and 0.9% respectively.

Benchmark indices settled on a higher note with Nifty 50 holding 8,450 level ahead of expiry of January derivative contracts tomorrow and Union Budget that will be presented on February 1.

Analysts are hoping for a budget that delivers some incentives to support an economy that has been hit by India's shock move to ban higher-value banknotes.

Sensex rallied as much as 276 points today led by gains in Bajaj Auto, M&M, Adani Ports and HDFC Bank.

The S&P BSE Sensex settled the day at 27,376, up 259 points, while the broader Nifty50 ended 84 points higher at 8,476.

In the broader market, BSE Midcap and BSE Smallcap indices mirrored the gains in headline indices and rose 1% and 0.9% respectively.

The Supreme Court on Monday rejected a petition to delay the annual federal budget, which Finance Minister Arun Jaitley is scheduled to deliver on Feb. 1, dismissing concerns about potential giveaways ahead of critical state polls.

Sectors and stocks

IT stocks fell with Infosys Ltd and HCL Technologies Ltd down between 0.5%-1% amid worries U.S. President Donald Trump's protectionist stance would adversely impact global exporters.'

Banks were among the gainers, up 0.9% led by IndusInd Bank (1.8%). HDFC Bank gained nearly 1% after upbeat Q3 earnings results.

India’s third-biggest lender reported a 15% rise in third-quarter net profit at Rs 3,865.33 crore due to higher interest and fee income. Its profit for was Rs 3,356.84 for the corresponding quarter last year.

Bajaj Auto, M&M, Adani Ports, Coal India and L&T were the top gainers on BSE Sensex while Bharti Airtel, Infosys and HUL were the biggest laggards on BSE Sensex.

Among individual stocks, Tata Communications has rallied 6% to Rs 712, also its 9-year high on the BSE in intra-day trade, after the company reported an over 12-fold jump in its consolidated net profit of Rs 1,413 crore for the December end quarter (Q3FY17), mainly on account of one-time gain due to sale of its data centres.

Tata Group Company had profit of Rs 111 crore in the same quarter last fiscal. The stock ended 5% higher.

TVS Motors gained 5% after the company reported a 10.4% rise in profit in third quarter to Rs 132.67 crore, driven by other income and lower tax cost.

All three listed oil marketing companies (OMCs) Indian Oil Corporation (IOCL), Hindustan Petroleum Corporation (HPCL) and Bharat Petroleum Corporation (BPCL) along with IndusInd Bank, Hindustan Zinc and Power Grid Corporation are 10 stocks from the Nifty500 index hitting their respective record highs on the National Stock Exchange (NSE) at intra-day.

BSE IPO fully subscribed

BSE's initial public offer -- the first by a domestic stock exchange in India -- to raise up to Rs 1,243 crore was fully subscribed by the afternoon trade today, the second day of the offer.

The IPO, which closes tomorrow, received bids for 1,08,89,568 shares against the total issue size of 1,07,99,039 shares, data available with the NSE till 1330 hrs showed.

The stock exchange aims to raise up to Rs 1,243 crore from the IPO, which is priced at Rs 805-806 per share.

During the initial share sale -- which is also a first by any company this year -- shareholders will sell 15.43 million shares estimated to be around Rs 1,243.44 crore at the higher end of the price band.

Photograph: Reuters