The News International Team
The market ended choppy session with marginal gains supported by blue chips. The Sensex was up 38.18 points at 25918.95 and the Nifty ended up 12.50 points at 7739.55. About 878 shares advanced, 2049 shares declined, and 85 shares were unchanged.
FMCG stocks put up a great show as investors sought shelter in defensives. Capital goods, metals and bank stocks were beaten out of shape.
Vineet Bhatnagar, Managing Director, Phillip Capital feels the Nifty is likely to break out on the upside and it could be headed to 7800 if it closes above 7630 this week.He says a big correction is unlikely as the recent declines were not supported by big volumes, suggesting a bullish undertone.
According to Prabhat Awasthi, Nomura the cyclical pick-up in growth is being ignored by the market obsessed with bold policy and reform moves by the new government. “Our August-end 2015 Sensex target is 30,310, which offers a potential 20 percent upside from current levels based on a conservative 12 percent earnings CAGR for FY14-17, he adds.
Meanwhile, Lok Sabha passed the judicial appointments bill which seeks to overturn the collegiums system of appointing judges. The Congress will press for amendments in the Rajya Sabha.
Global sentiment recovered slightly as the Asian markets ended in the green. Markets across Europe also gained as investors await new inflation forecasts by the Bank of England.
Israel threatened to wipe out Hamas if current truce in Gaza collapsed as time ran out today on the 72-hour ceasefire with no breakthrough in indirect talks between Israeli and Palestinian negotiators. The key disagreements are said to be over the opening of the border crossings between Israel and Gaza, including how the crossings will be supervised and what kind of merchandise will be allowed into Gaza.
BHEL was the biggest loser on the Sensex. After an ‘extremely weak’ post April-June, brokerages recommended selling which dragged the stock 7 percent. Hindalco, Coal India, SBI and Axis Bank were other laggards.
Investors were seen aggresively buying FMCG stocks particularly ITC and HUL. Sun Pharma, Wipro and HDFC were other major gainers.
Small and midcap stocks declined sharply. Unitech lost 17 percent, Engineers India fell 14 percent among the midcap stocks. J&K Bank dropped 5 percent as its Q1 result was very weak.
However, Eicher Motors was seen getting attention for another day. This time Credit Suisse raised target on the stock.
Investors will keep a keen watch on Tata Steel in tomorrow’s trade. The steel producers disappointed street by reporting a whopping 70.4 percent decline in consolidated net profit at Rs 337.3 crore for the April-June quarter, impacted by provision for impairment of non-current assets, higher tax expenses and interest cost. Profit in the year-ago period was Rs 1,139 crore.