Sensex Finishes Firm; Software & FMCG Stocks Gain

Wed, 21 Feb Closing

   Previous Close   

   Pre-Open   

   09:30 am   

   11:30 am   

   01:30 pm   

Indian share markets finished the trading session well above the dotted line, snapping a three-day falling streak amid firm Asian markets. At the closing bell, the BSE Sensex closed higher by 141 points and the NSE Nifty finished higher by 37 points. The S&P BSE Mid Cap finished down by 0.1% while S&P BSE Small Cap finished down by 0.2%.

Gains were largely seen in software stocks, FMCG stocks and energy stocks.

Asian stock markets finished broadly higher today with shares in Hong Kong leading the region. The Hang Seng is up 1.81% while China's Shanghai Composite is up 0.45% and Japan's Nikkei 225 is up 0.21%. European markets are lower today with shares in Germany off the most. The DAX is down 0.44% while France's CAC 40 is off 0.25% and London's FTSE 100 is lower by 0.10%.

Rupee was trading at Rs 64.81 against the US$ in the afternoon session. Oil prices were trading at US$ 61.19 at the time of writing.

The Market cap to GDP ratio for Indian companies too is close to dangerously high levels. While this is still some way off the peak of FY-08, when it had once reached close to 150, it's relatively high.

FY17 saw this ratio reach close to 80. It is also expected to increase further given the moderate growth expectations in India's GDP for FY18. Warren Buffett once considered this as one of the best valuation metrics to gauge the markets.

Past history shows some correlation between the ratio and the share market. 2008 saw Sensex decline by 38%, when this ratio crossed the 100 mark. Also, the market has bounced back sharply when this ratio was low.

The Warren Buffett Indicator Suggests Indian Equity Market Is Overvalued

The basic assumption in this ratio is that whenever the GDP of the country grows, the market performance will reflect it. Also, when stocks do well, it can be extrapolated to assume the Indian economy is doing well.

Software stocks finished the day on a strong note with Tech Mahindra share price and TCS share price leading the gains.

As per a leading financial daily, the National Association of Software and Solutions Companies (NASSCOM) has forecasted India's Information Technology (IT) industry will grow at 7-9% in the next financial year 2018-19 as against 7.8% in 2017-18, despite of multiple global headwinds and uncertainties in the software services space.

Noting that the next year will be better for the technology industry at large, it has projected a flat growth revenue scenario for the second year in a row. According to the industry body, the export revenues will grow to US$135-137 billion from the US$126 billion estimated for the current year.

Nasscom president R Chandrashekhar has said that the domestic revenue may grow at slightly higher pitch of 10-12%, while exports may lag in FY19.

He added that the industry may hire 100,000 new hands in FY19, which again 50% lower than what it had projected for this year. For the current fiscal, he said that the industry may register lower-than-projected 7.8% growth, and may touch US$167 billion in revenue size during the year in terms of exports and 10% in domestic revenue.

Expressing optimism, Chandrashekhar said that the mood is upbeat and the trend is positive, which should translate into better business opportunities.

Moving on to news from pharma sector. Biocon share price is in focus today after the drug major said that the United States Food & Drug Administration (USFDA) made six observations after inspecting its Malaysia plant.

Biocon said that the USFDA completed a pre-approval inspection of the facility and issued a Form 483 with six observations.

As per USFDA, observations are made in Form 483 when investigators feel that conditions or practices in the facility are such that products may become adulterated or render injuries to health.

Biocon share price finished up by 2.3%.

In another development, as per an article in The Economic Times, Aurobindo Pharma has expressed early stage interest in the European business of the US$1.7-billion privately held Canadian drugmaker Apotex.

Known for its high profile litigations in the US against MNC pharma players, Apotex has put on the block its European operations as part of a wider consolidation effort.

The deal may be valued at around US$100 million and fits in with Aurobindo's strategic road map of upping its presence in eastern Europe through bolt-on acquisitions.

Aurobindo pharma share price finished the trading day down by 0.6% on the BSE.

In news from engineering sector, state-run power equipment maker Bharat Heavy Electricals Ltd (BHEL) on Wednesday said it has bagged a Rs 10.34 billion gas turbine-based captive power plant order from Hindustan Petroleum Corp. Ltd (HPCL).

The order has been placed for its Visakh Refinery expansion project at Visakhapatnam, Andhra Pradesh.

BHEL said this captive power plant is being set up to meet the power and steam required by HPCL for its planned refinery expansion from 8.33 to 15 MMTPA.

BHEL share price finished the day down 1.2%.

In another development, Eros international share price surged 4.7% after Reliance Industries Ltd (RIL) said it will buy a 5% stake in NYSE listed Eros International Plc (Eros) through a subsidiary.

RIL will pay US$ 15 per Eros International share, which represents an 18% premium to Friday's closing price. Further, the two parties will equally invest up to Rs 10 billion to produce and acquire Indian films and digital originals across all languages.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

Read the latest Market Commentary

Top Gainers TodayTop Gainers over 1-WeekTop Gainers over 1-MonthTop Gainers over 1-YearTop Gainers over 3-YrsTop Gainers over 5-YrsTop Losers TodayTop Losers over 1-WeekTop Losers over 1-MonthTop Losers over 1-YearTop Losers over 3-YrsTop Losers over 5-YrsOnly BuyersOnly SellersMost Active StocksMost Popular Stocks52 Week High Stocks52 Week Low Stocks

INDICESBSE (Rs 0 to 1)BSE (Rs 1 to 2)BSE (Rs 2 to 4)BSE (Rs 4 to 10)BSE (Rs 10 to 20)BSE (Above Rs 20)BSE - AllBSE-30BSE-100BSE-200BSE-500BSE AutoBSE BankexBSE Capital GoodsBSE Consumer DurablesBSE FMCGBSE HealthcareBSE ITBSE MetalBSE Oil & GasBSE PSUBSE TeckBSE RealtyBSE PowerBSE A GroupBSE B GroupBSE Mid-CapBSE Small-CapBSE Basic MaterialsBSE Consumer DiscretionaryBSE IndustrialsBSE UtilitiesBSE Sensex 50BSE Sensex Next 50BSE Bharat 22BSE 150 MidCapBSE 250 SmallCapBSE 250 LargeMidCapBSE 400 MidSmallCapBSE AllCapBSE LargeCapBSE SmallCap SelectBSE 100 LargeCap TMCBSE InfraBSE ManufacturingBSE CPSEBSE Private BankBSE Diversified FinancialsBSE MomentumBSE Low VolatilityBSE QualityBSE Enhanced ValueBSE Divident StabilityS&P BSE IPOBSE SMEIPOBSE 100 ESGBSE CarbonexBSE GreenexNSE (Rs 0 to 10)NSE (Rs 10 to 20)NSE (Above Rs 20)NSE - AllNSE-50NSE ITNSE Nifty Midcap 50NSE JR. NiftyNSE Bank NiftyNIFTY Next 50NIFTY 100NIFTY 200NIFTY 500NIFTY MidCap 100NIFTY SmallCap 250NIFTY SmallCap 50NIFTY SmallCap 100NIFTY LargeMidCap 250NIFTY MidSmallCap 400NIFTY AutoNIFTY Consumer DurablesNIFTY FinanceNIFTY FMCGNIFTY MediaNIFTY MetalNIFTY PharmaNIFTY Private BankNIFTY PSU BankNIFTY RealtyNIFTY Oil & GasNIFTY SME EmergeNIFTY CommoditiesNIFTY CPSENIFTY EnergyNIFTY India ConsumptionNIFTY InfraNIFTY MNCNIFTY PSENIFTY Serv SectorNIFTY100 Liquid 15NIFTY Midcap Liquid 15NIFTY Midcap 150 Quality 50NIFTY50 Equal WeightNIFTY100 Equal WeightNIFTY100 Low Volatility 30NIFTY100 Alpha 30NIFTY Alpha 50NIFTY Dividend Opportunities 50NIFTY High Beta 50NIFTY Low Volatility 50NIFTY200 Quality 30NIFTY 500 Value 50NIFTY 100 Quality 30SECTORSAgricultureAirlinesAluminiumAsset Management CompaniesAutomobilesAuto AncillariesBanks (Private)Banks (PSU)BankingCementChemicalsDefenceDiagnosticsDronesEngineeringElectric VehicleElectric Vehicle BatteryEnergy SourcesESGEthanolFertilizersFintechFMCGFoodGreen HydrogenHotelsInfrastructureInsuranceInvestment and FinanceInvITIT (Large)IT (Others)LogisticsMediaMetalMiningIndia's Big Tech StocksIndian PharmaMNC PharmaPSUPaintPaperPlasticPowerRating AgenciesReal EstateREITsRenewable EnergyRetailingSemiconductorShippingSteelSugarSupply ChainTelecomTextilesTravel Support Services

10 results 25 results 50 results 100 results All results

Indian Share Market Update: Top Gainers and Losers