Mumbai: It was a positive start to the week with the equity benchmarks gaining 0.8 percent Monday, after losing more than two percent last week. Some short covering and robust trade data led the support. The BSE Sensex rose 157.64 points to close at 18946.98 after scoring more than a double century intraday while the NSE Nifty advanced 46.75 points to 5612.40.
Meanwhile, the broader markets outperformed benchmarks with the BSE Midcap and Smallcap indices gaining more than 1.5 per cent. Advancing shares outnumbered declining ones by 1438 to 815 on the BSE. Trade data for July was strong today with the exports rising 12 pe rcent and imports falling 6.2 per cent on lower oil import. Trade deficit declined to USD 12.2 billion from nearly USD 18 billion in a year ago period.
Metals, FMCG, healthcare, capital goods and auto stocks rallied while banks remained under pressure on fears of more rupee measures. Metals shares saw strong demand with the BSE Metal index rising 4.5 per cent following China's positive economic data. Tata Steel (ahead of earnings on Tuesday) and Jindal Steel rallied 8-9 per cent.
Sun Pharma was the star performer among defensives, soaring 6.6 percent after first quarter earnings. Credit Suisse has an outperform rating on the stock; the brokerage house raised its target price to Rs 585 and increased earnings per share estimate by 14 percent to reflect higher US sales, lower tax rate and a rupee rate of 60 per dollar.
ITC, HDFC, Hindustan Unilever, Larsen & Toubro and Hero Motocorp shares gained 2-3 per cent. Shares of State Bank of India, the country's largest lender, dropped 3.4 per cent post disappointing earnings in April-June quarter. Net profit fell higher-than-expected 14 per cent year-on-year to Rs 3,241 crore while its net NPA jumped 36.6 per cent Q-o-Q to Rs 29,989 crore during the quarter.
The BSE Bankex lost one percent; private sector lenders ICICI Bank and HDFC Bank were down 1-1.6 per cent. Private oil & gas explorer Reliance Industries, software services exporter TCS and power producer Tata Power declined 1.7-3 per cent.
Aurobindo Pharma shares surged 12 percent after reporting a profit of Rs 18 crore in Q1 as against loss of Rs 129 crore Y-o-Y and the board also approved spinning off the injectable business. Manappuram Finance rallied 4.5 percent after posting a profit of Rs 53 crore in June quarter versus a loss of Rs 141 crore last quarter.
Shriram EPC gained 3 percent as Irish cement maker CRH acquired Sree Jayajothi Cements, a unit of Shriram Group for Rs 1400 crore. Shriram EPC held 68 percent stake in that company.
Gujarat Gas shares added another 16 percent gains on top of a 20 percent rally last Friday post strong earnings. Nomura upgraded the stock to a buy with a target price of Rs 250. The brokerage house says that while concerns remain on likely restructuring, valuations at 6.1x P/E and 1.5x P/B are too compelling.
Tech Mahindra and Marico gained 1-1.7 percent while Britannia Industries jumped 5.4 percent on higher-than-expected earnings in June quarter. GVK Power spiked 12 percent after its Q1 loss more than halved to Rs 30 crore (year-on-year) on better performance from airport segment and overall improvement in margins.
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