Holi rally brings Sensex closer to all-time high; index gains 496 points

3.35 PM IST: Stock markets ended Tuesday trading on a high note, cheering BJP's spectacular victory in five states, especially Uttar Pradesh, though it lost to the Congress in Punjab. The Sensex ended 496 points higher, or 1.71 percent, at 29,442 while the NSE Nifty closed 152 points up, or 1.71 percent, at 9,087. The BSE Sensex is now 582 points away from its all-time high of 30,024.

In Goa, chief minister-designate Manohar Parrikar was directed by the Supreme Court on Tuesday to prove his majority on Thursday at 11 am, after the BJP-led coalition's government formation was challenged by the Congress.

The Congress won 17 seats, the BJP 13, the Goa Forward Party (GFP) 3, the Maharashtrawadi Gomantak (MGP) 3 and the Nationalist Congress Party (NCP) one seat. Independents won three seats in the 40-member Goa Assembly.

The BJP had claimed support of 21 MLAs, including those from the MGP, GFP and two Independents, leaving the Congress fuming. The Supreme Court directive came in response to a petition filed by Congress leader Chandrakant Kavlekar moved the apex court, challenging the decision of the Goa governor to invite a BJP-led coalition. 

Top Sensex gainers were ICICI Bank, Hindustan Unilever, Larsen & Toubro, HDFC and Asian Paints.

2.57 PM IST: Sun Pharma gained 6.55 percent to hit an intraday high of Rs 728 after the company informed the stock exchanges that the US FDA has lifted an import alert imposed on its Mohali manufacturing facility in Punjab. Angel Broking upgraded the target price to Rs 847.

"This will pave way for better growth for the company in US and improvement in asset utilisations and hence return ratios in long run. We maintain our BUY rating with a price target of INR 847," the brokerage said in a note.

"This proposed action will clear the path for Sun Pharma to supply approved products from the Mohali facility to the US market, subject to normal US FDA regulatory requirements," Sun Pharma said.

"The US FDA had taken action against the Mohali facility in 2013 when it ordered the facility to be fully subject to Ranbaxy's Consent Decree of Permanent Injunction. Certain conditions of the consent decree will continue to be applicable to the Mohali facility. This development illustrates Sun Pharma's commitment to work closely with the US FDA and strive for 100% cGMP compliance at its manufacturing facilities," it added.

SpiceJet gained on news that it was planning a foray into retail business.

ICICI Bank was the biggest Sensex gainer at 5.80 percent (Rs 286). The Sensex was trading 1.62 percent higher at 29,415.

2.07 PM IST: After trading lower for sometime, stocks have bounced back. The BSE Sensex is up 1.90 percent (540 points) at 29,496 while the NSE Nifty was trading 1.79 percent higher at 9,095. Top Sensex gainers were ICICI Bank, Sun Pharma and L&T.

SpiceJet was up 2.78 percent higher at Rs 81.35. A news channel had reported that the low-cost carrier was planning to enter the retail market and sell products outsourced from domestic and vendors, under the "Spice" brand.

11.50 AM IST:  The markets have sustained their gains, with both the Sensex and the Nifty trading about 1.6 percent higher (Sensex 29,427 and Nifty 9,081). Bank stocks are outperforming on the BSE, with the Bankex up 2.20 percent.

ICICI Bank is the biggest gainer at 5.67 percent (Rs 285), followed by Yes Bank (up 3.15 percent at Rs 1,527). Federal Bank, Bank of Baroda and Punjab National Bank are also trading with gains.

Mid-cap stocks have also risen sharply, with the BSE Midcap index up 1.50 percent, led by Indiabulls Housing Finance (up 6.25 percent), Shriram Transport Finance (up 5.29 percent).

10.30 AM IST: Both the indices — BSE Sensex and NSE Nifty — have trimmed their opening gains. The Sensex is trading at 29,427, up 481 points, or 1.66 percent while the Nifty was up 1.63 percent at 9,080.  

Karnataka Bank shares were up 3.19 percent at Rs 140. Recently, the private sector lender signed an agreement with Bajaj Allianz General Insurance to sell non-life insurance products across its 747 branches. 

10.00 AM IST: The BSE Sensex was up 480 points at 29,426, just about 600 points away from its all-time high of 30,024 hit on March 4, 2015. The Nifty surpassed its historic high of 9,008 to record a new level and was trading 141 points higher, or 1.59 percent, at 9,076. The Indian rupee opened at a one-year high of 66.20 to the US dollar.

On expected lines, Indian stock markets have opened with a bang, responding to the BJP's win in Uttar Pradesh. The Sensex gained 559 points, or 1.93 percent, at 29,468 while the NSE Nifty was up 178 points, or 2 percent, to trade at 9,113. 

Select stocks such as Yes Bank, Escorts, Bajaj Electrical, KEC International hit new 52-week high.

Top Sensex gainers were ICICI Bank (up 4.71 percent), HDFC (3.17 percent) and ITC (2.7 percent).

In its pre-opening note on Tuesday, brokerage Motilal Oswal Securities (MOSL) said the rally could be a long, sustained one.

"The BJP is set to form govt in 4 out of 5 states that went for elections and this will be seen positively. This could pave way for a longer rally on expectations of more policy reforms on one hand and sustenance of same govt for a longer time frame. GST now becomes a certainty. Some of the logistic stocks could see gains. Banking, Auto, metals and govt dependent sectors like infra and defense could see gains. In the near term the market could move closer to its record highs," MOSL said.

The all-time high for the BSE Sensex is 30,024 hit on March 4, 2015. It had closed at 28,946 on Friday.

The BJP won 312 while its allies added 13 seats, taking its strength to 325 in the 403-member Uttar Pradesh Assembly. It also won a huge majority in neighbouring Uttarakhand.

In the US, stock markets were cautious on Monday ahead of the US Federal Reserve meeting on Tuesday-Wednesday.

"US stocks remained flat as investors awaited the rate hike by the Federal Reserve. Investors strongly expect that the Federal Reserve will announce a rate hike after its meeting on Wednesday. Shares of Intel were down 2.3 percent after announcing that it planned to buy Mobileye. Health care stocks were down slightly over uncertainties over the Republicans replacement for Obamacare," brokerage Angel Broking said in a note.

The stock markets were closed on Monday on account of Holi.