Rise in Rupee, fall in crude among 4 factors that pushed Sensex above 39K

The market surged in the final hours of trade that pushed the S&P BSE Sensex above 39,000 as Nifty also managed to reclaim 11,750 on a closing basis on April 26, which is a positive sign.

On a weekly basis, the S&P BSE Sensex closed 0.19 percent lower while the Nifty50 closed flat with a positive bias for the week ended April 26.

The final tally – the S&P BSE Sensex rose 336 points to 39,067 while the Nifty50 climbed above 11,700 to close at 11,754, up 112 points.

Recovery in the rupee, fall in crude oil prices (below $ 73/bbl), strong rollovers for May series, as well as stable earnings are some of the factors that pushed markets higher.

In terms of sectors, metals, banks, oil & gas, and energy stocks rose 1-2 percent each while profit taking was seen in the auto, consumer durable, and telecom stocks.

The March quarter earnings were largely in-line with estimates barring few that have not disappointed the street that much. There is value in select names, which if held for a period of 1-2 years, holds the potential to create wealth for investors, suggest experts.

“The results which have come so far were largely in-line with estimates. Historically, we have seen the pain in sectors like metals and midcaps which are yet to announce results. Stocks in cement sectors such as UltraTech Cement posted strong results and the performance is sustainable for the next 1-2 years,” Shailendra Kumar, Chief Investment Officer at Narnolia Financial Advisor said.

“The other stock are from banking space – Axis and HDFC Bank. Both of them posted a good set of numbers and can be held for long term,” he said.

Stocks in news:

Aurobindo Pharma gained 4 percent after global research house Citi reiterated stock as one of its two top picks in Indian pharma space.

Shares of Tata Steel ended 6.6 percent higher on April 26 after the company reported its fourth-quarter numbers on April 25. Tata Steel posted the biggest one-day gain in the last two years.

Multi Commodity Exchange of India added 5 percent after healthy earnings growth in the quarter ended March 2019.

Piramal Enterprises reported 88 percent plunge in consolidated net profit to Rs 456.24 crore for the fourth quarter ended March 31, 2019. The stock closed nearly 6 percent lower.

Axis Bank rose over 2 percent after it posted a profit of Rs 1,505 crore for the quarter ended March 2019 on better asset quality and decline in slippages.

Global update:

European markets are trading marginally lower amid corporate earnings.

Asian markets ended mostly lower amid weak closing registered by the US markets overnight.

Shanghai Composite shed 1.20 percent to 3,086.40 and Nikkei fell 0.22 percent at 22,258.73. Hang Seng was up 0.20 percent at 29,605.01, while Kospi ended at 2,179.31, down 0.51 percent.