Metal stocks prove their mettle, Nifty closes over 10,000 for first time ever
Yes Bank Ltd’s betterthan-expected earnings and gains in metal stocks helped the NSE’s 50-share Nifty close above the 10,000-mark for the first time ever.
The Nifty ended at 10,020.65 points, up 0.56% or 56.10 points. BSE’s 30-share Sensex rose 0.48% or 154.19 points to close at 32,382.46 points.
Intraday, Sensex rose as much as 0.58% or 185.36 points to reach 32,413.63 points, while the Nifty rose 0.62% or 61.40 points to 10,025.95 points.
Yes Bank rose 6.44%, its biggest gains in one-and-a-half years to close at an all-time high of ₹1,722 a share. The bank reported a net profit of ₹965.52 crore, up 32% from ₹731.80 crore a year ago as its bad loans fell sharply. Gross non-performing assets declined significantly to 0.97% in the June quarter against 1.52% in the previous quarter.
Among metal stocks, Jindal Steel & Power Ltd rose 9%, Vedanta Ltd gained 2.3%, and Tata Steel Ltd surged 2.2% due to a surge in prices on the London Metal Exchange. So far this year LME Copper, Aluminum and Zinc have gained 12.5%, 12% and 11%, respectively, on the prospects of China cutting capacity to ease oversupply and control pollution, according to a Bloomberg report.
Among the losers, Axis Bank Ltd fell 3.3% after it reported a 16% decline in its June quarter earnings as it made higher provisions against bad loans. Zee Entertainment Enterprises Ltd declined 1.6% as many brokerages downgraded the stock after it reported lower-than-expected earnings. It reported a net profit of ₹251 crore against Bloomberg estimates of ₹317 crore.
So far this year, foreign institutional investors have bought a net of $8.73 billion in equities, while domestic institutional investors have bought a net of ₹24,126.87 crore.