Nifty ends 100 points up; ITC hits life high, IT stocks gain
Largecap IT stocks ended in green on the back of short covering.
Mumbai: Key equity benchmarks closed in green after consolidating for most part of the day. The action was by and large limited around the stocks that had declared their results. Positive regional shares helped the Nifty to close above 5900 mark once again.
Broking house Religare expects to see some correction in Indian stocks in May due to macroeconomic headwinds. The May selloff is likely despite the satisfactory January-March corporate results so far and a possible 25 basis points reduction in interest rates by the RBI on May 3.
The Sensex closed at 19387.5 up 100 points and the Nifty closed at 5904 up 32 points.
Largecap IT stocks ended in green on the back of short covering. However, midcap IT stocks disappointed the street mirroring lackluster earnings performance of some of the largcap IT stocks. Hexaware, Polaris and Geometric missed street estimates on the operation front.
Realty stocks also surged in trade today ahead of the RBI credit policy on May 3. Shares of DLF, HDIL, Indiabulls Real Estate and Unitech were up between 1-6 per cent.
Auto majors Hero Moto and Maruti Suzuki continued their good run after companies outperformed earnings estimate on Friday.
ITC closed at all-time high after its rival Hindustan Unilever (HUL) posted better-than-expected results despite challenging environment. HUL registered a 14.6 per cent year-on-year rise in its net profit to Rs 787 crore. The street was surprised by volume growth of 6 per cent in March quarter as against forecast of 5 per cent.
The biggest earning shocker of the day so far was Indian Overseas Bank. The bank reported net profit of Rs 58.7 crore, ad drop of close to 90 per cent over the previous year figures. The stock closed with 7 per cent losses.
Bank of Maharashtra on the other hand ended 20 per cent higher over its previous close. The bank's net profit jumped more than 300 per cent to Rs 259 crore in the fourth quarter compared to previous year.