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Choppy Sensex closes marginally higher; PSU banks on fire


The News International Team

Equity benchmarks bounced back with marginal gains on Thursday after profit booking in previous session. Banks consistently supported the market today while power, metals and technology stocks lost ground.

The 30-share BSE Sensex rose 45.82 points to 26360.11 and the 50-share NSE Nifty climbed 15.80 points to 7891.10 while the BSE Midcap and Smallcap indices gained 0.5 percent and 0.3 percent, respectively.

Experts say though there is a consolidation and correction in the market in near term, the upside may continue at least till the year-end.

R Sreesankar, Head – Institutional Equities, Prabhudas Lilladher expects the Nifty to trade in range of 7100 at the lower end and 8200 at the higher end for the next three months.

“This view was firmed up on the basis of expectations that the economy will start to deliver or rather the business confidence will be back and that will start resulting in economy being able to deliver. In terms of large number of BOT companies the road toll projects etc, the traffic is up that again brings back the confidence level,” he elaborates.

On the global front, FOMC minutes released last night suggested that the Fed may end asset-purchasing programme soon and may start raising interest rate sooner than anticipated. Now investors will closely watch the outcome of two-day meeting of central bankers in Jackson Hole that will start tonight.

Asian markets closed mixed with the Shanghai falling 0.44 percent after Chinese HSBC PMI fell to 3-month low while European markets were up 0.2-0.6 percent (at 16 hours IST).

On the home turf, Bank Nifty rallied more than a percent. Punjab National Bank topped the buying list among largecap banks, up nearly 4 percent followed by State Bank of India and Bank of Baroda with over 2 percent. HDFC Bank and Axis Bank rose over a percent but rival ICICI Bank closed flat.

Finance Minister Arun Jaitley today said that the government was working to tighten up risk management in the banking sector.

Engineering and construction major Larsen and Toubro was up 1 percent after its brand L&T Construction received orders worth Rs 1,832 crore in July and August.

Auto stocks too closed higher with the Bajaj Auto rising 3 percent and Mahindra & Mahindra up over a percent. Hero Motocorp, Maruti Suzuki and Tata Motors were marginally higher.

Metal stocks like Sesa Sterlite and Tata Steel declined over 1.6 percent after the cabinet hiked royalty rates on iron ore to 15 percent from 10 percent earlier. MOIL too was under pressure, down 0.8 percent as manganese royalty rates increased to 5 percent from 4.2 percent earlier.

Shares of Dr Reddy’s Labs, NTPC, Hindalco Industries and Tata Power fell 1-2 percent.

Zee Entertainment rose over a percent as it is all set to replace United Spirits (down 2 percent) in CNX Nifty with effect from the September 19.

About 1679 shares advanced while 1340 shares declined on the Bombay Stock Exchange.


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