Thursday, September 24, 2020
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Indian shares rally on exit polls euphoria

NEW DELHI: Indian markets rallied sharply, shrugging off weak global cues, after a slew of exit polls
 predicted a strong showing for the Narendra Modi-led BJP in state
 elections, the results for which would be announced on December 8.

Modi is perceived as being more business-friendly and many investors
are betting that he will undertake reforms to step up investments and
boost economic growth.
Confirmation of a strong showing by the BJP
 will increase its chances of victory in general elections due by May,
analysts said.


The benchmark BSE Sensex hit an intra-day high of 21,166 in the
morning before paring gains to end up 249.10 points or 1.20 percent
at 20,957.81.
The broader Nifty index closed at 6,241.10, up 80.15
points or 1.3 percent from its previous close.
The rupee was last
trading higher at 61.74 per dollar.


Banks led the gainers, with ICICI Bank climbing 6.7 percent, while
 HDFC Bank jumped 4.5 percent and SBI advanced 1.9 percent.
Axis Bank
 jumped 4 percent on reports that three global payment processing
firms are in the race to acquire its credit and debit card swipe
machines business.


Engineering & construction giant Larsen & Toubro soared 4.5 percent, 
power equipment maker BHEL gained nearly 4 percent, automaker Maruti 
Suzuki advanced 3.7 percent and mortgage lender HDFC rose 1.8
 percent.


Wipro posted a modest 0.2 percent gain after exiting its PC
manufacturing business. Bharti Airtel gained 0.7 percent as it raised 
Rs. 750 million euros (about Rs 6,350 crore) through a bond sale in 
the overseas market.


Shares of Adani Group companies, which have a big presence in
 Gujarat, posted solid gains.
Adani Ports and Special Economic Zone
 rallied 4.2 percent, Adani Power rose 2.6 percent and Adani
 Enterprises added a percent.


ICRA rose 1.2 percent after its wholly-owned subsidiary ICRA
 Management Consulting Services and Cambridge Systematics have signed
 a pact to provide consulting services to the transportation sector in
 Asia, across Asia, and in Africa.

3i Infotech hit the 5 percent upper circuit limit after its CDR 
empowered group approved the conversion of rupee debt aggregating to 
Rs.1,298 crore into foreign currency debt of around $215 million.


Swan Energy soared 5.8 percent after its board approved a stock
split.
Likewise, Mirc Electronics rallied 4.8 percent on receiving
board approval for a rights issue.


Jubilant Life Sciences plunged 10 percent after receiving a warning
from the US.
FDA over manufacturing practices at one of its US 
facilities.
Strides Arcolab slumped 14.5 percent as the
pharmaceutical firm announced the completion of sale of its Agila
 Specialties Division to Mylan Inc. for a total consideration of up to
 $ 1.75 billion.


Cipla shares fell 0.9 percent.
The company said it has acquired 100
percent stake in Celeris d.o.o., Croatia, its distributor in Croatia,
through its wholly-owned subsidiary Cipla Holding B V.
Alstom T & D
India declined 1.7 percent after allotting 1.69 crore shares to 
institutional investors.


On the global front, the Asian markets fell to a three-week low as
investors became more concerned about the US Federal Reserve’s
stimulus plans amid signs of improving US economy.
With a slew of
reports pointing to a brightening outlook for the world’s largest
economy, investors sat on the fence awaiting Friday’s employment
 report that should shed further light on when the US central bank
 might begin tapering its bond-buying program.


European stocks also opened lower ahead of the ECB and BoE policy
meetings, with many economists expecting the central banks to stand
pat on fresh policy action.