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NEW DELHI: The stock market showed confidence in the government’s rural focus and PSU capex plan proposed in Interim Budget 2019 as the equity benchmarks closed Friday’s session with healthy gains.
Analysts assessed the fiscal deficit target as within comfortable limits and interpreted that the sops for farmers and lower middle class would boost consumption and propel the economy.
The BSE Sensex settled 213 points, or 0.59 per cent, higher at 36,469, while NSE’s Nifty50 index closed 63 points, or 0.58 per cent, up at 10,893.
BSE Midcap and Smallcap indices closed higher by 0.56 per cent and 0.17 per cent, respectively.
We walk you through the highlights of Friday's session:SBI plunges despite better Q3 numbersShares of State Bank of India plunged 3.09 per cent to Rs 284.30 on BSE as the country's largest lender reported Rs 3,955 crore profit for the quarter ended December 31.
The earnings were better than what the market had expected.
Analysts in an ETNOW poll had projected Rs 3,200 crore profit for the quarter.
DRL rises post Q3 numbersShares of Dr Reddy’s Labs closed with a gain of 2.32 per cent at Rs 2,786 after it reported a 45 per cent year-on-year (YoY) rise in profit at Rs 485 crore for the December quarter.
Revenues for the quarter rose 1 per cent YoY to Rs 3,850 crore.
Jet Airways flies higherShares of Jet Airways (India) jumped 7.79 per cent to settle at Rs 255.90 after reports that the aviation company agreed to most conditions set by shareholder Etihad Airways.
As per TheIndianSubcontinent, both airlines may sign a memorandum of understanding (MoU) within days.
Vedanta suffers 18% lossShares of Vedanta suffered a 17.82 per cent loss to close at Rs 162.30 a day after it posted a 26 per cent drop in consolidated net profit at Rs 1,574 crore for December quarter.
Other than poor earnings, Cairn India’s stake buy in Anglo American did not go down well with investors.
Vedanta subsidiary Cairn India Holdings bought a stake of Rs 1,431 crore in Anglo American from Volcan Investments, a family trust of promoter Anil Agarwal, which is considered negative for Vedanta.
DHFL plunges 18%Extending their losing run into the fifth straight session, shares of Dewan Housing Finance Corporation (DHFL) closed 17.96 per cent down at Rs 111.45 on BSE.
Hit hard allegations of a financial mismanagement, the company has appointed an independent auditor to investigate the matter.
Investigative media outlet Cobrapost had on Tuesday accused the company of giving Rs 31,000 crore loans to ‘dubious’ entities linked to the promoters, who, the news portal alleged, were the ultimate beneficiaries of the funds.
Chairman Kapil Wadhawan countered the charges, claiming all the transactions were legitimate.
Hero MotoCorp jumps 7%Shares of Hero MotoCorp surged 7.48 per cent to settle at Rs 2,807 after it reported a 4.5 per cent drop in net profit for third quarter despite higher sales.
Brokerage Motilal Oswal Securities has a neutral view on the stock with a price target of Rs 2,928.
It said the margins of the company were in-line of the expectations and higher other income restricts the decline in PAT.
Agri stocks shine on farm boosterBudget sops for farmers and the proposed income-tax relief gave a boost to most auto, agriculture and realty stocks.
Shares of Sprayking Agro Equipment (up 16.28 per cent), KRBL (up 8.78 per cent) and Simran Farms (up 7.62 per cent) were the top gainers in the agri space.
Tax sops lift auto stocksIn his Budget speech, interim Finance Minister Piyush Goyal proposed to spend Rs 75,000 crore per year on income support for farmers.
The FM also offered income-tax relief for those earning up to Rs 5 lakh per annum and increased the standard deduction limit to Rs 50,000 from Rs 40,000.
Analysts said these moves would boost consumption.
Hero MotoCorp (up 7.48 per cent), Maruti Suzuki India (up 4.96 per cent), Eicher Motors (up 3.16 per cent) and TVS Motor Company (up 2.33 per cent) were among the top gainers in the BSE Auto pack.
Realty stocks see big spurtThe Finance Minister pushed for lowering GST rates on under-construction houses even as he extended income-tax holiday for new projected up to 2020 and offered tax relief on rent incomes on second homes.
Shares of Phoenix Mills (up 3.47 per cent), Indiabulls Real Estate (up 1.84 per cent) and Oberoi Realty (up 1.72 per cent) led the pack of gainers in the BSE Realty index, which closed 1.33 per cent higher at 1,797.
Spurt in open interestVedanta, with a change of 137.99 per cent, led the pack of stocks that witnessed the biggest rise in open interest on NSE.
It was followed by State Bank of India (61.11 per cent), Jet Airways (59.81 per cent), Hindustan Zinc (55.17 per cent), Hero MotoCorp (49.35 per cent) and DHFL (48.58 per cent).
Barring Hero MotoCorp, all these stocks closed the day in the red which indicates a bearish trend in technical parlance.
Analysts say if a company is expected to perform poorly prior to results the stock will fall and the open interest rises.
70 stocks show potential for riseMomentum indicator moving average convergence divergence, or MACD, showed bullish crossovers on 74 counters on BSE.
Among them were Equitas Holdings, Larsen Toubro, Hindustan Unilever, Avenue Supermarts, Venky's (India) and Divi's Labs.
On the other hand, 38 stocks, including Vedanta, GBL Industries, Tourism Finance, KIC Metaliks and Summit Securities, showed bearish crossovers on BSE.
Overbought oversold stocksDHFL, Zee Media, Punj Lloyed, Sterlite Technologie, ILFS Transportation and KPIT Technologies were among the 53 stocks on BSE that sipped into the oversold territory as per momentum oscillator Relative Strength Index or RSI.
On the other hand, Alankit, Mahamaya Steel, Esaar (India) and Apoorva Leasing were among the 26 overbought stocks.
Jubilant, Sobha above 200-DMAsJubilant FoodWorks, Bosch, Rajesh Exports, Sobha, Phoenix Mills and FCS Software were among the stocks that witnessed positive brekouts and traded above their 200-DMAs.
On the other hand, Petronet LNG, Strides Pharma, Astron Paper Board and Gulshan Polyols were among the stocks that traded below their 200-DMAs.
