The News International Team
Equity benchmarks ended at new closing high on Friday with the 50-share NSE Nifty seeing the 7900-mark (at close) for the first time in history, though it was another consolidation day.
The Sensex rose 59.44 points to 26419.55 while the Nifty climbed 22.10 points to close at 7913.20 after hitting day’s high of 26508.27 and 7929.05 (record high), respectively.
Experts believe the upside (gradually) may continue in short term through there may be some intermittent correction and consolidation. They expect the Nifty to touch 8100-8200 levels in short term on hopes of some developments during PM’s visit to US and Japan.
Deven Choksey of KR Choksey Shares & Securities believes the market can continue to rally in September on the back of Prime Minister Narendra Modi’s visit to the US and Japan, which is likely to garner a lot of interest from corporate houses and also the PM is expected to invite a lot of interest into India and in Indian corporates.
For the week, the Sensex rallied 1.2 percent and Nifty gained 1.6 percent, especially after the Modi’s speech on Independence Day that more focused on increasing manufacturing activities, making India exporter than importer, encouraging entrepreneurs etc.
The much awaited outcome of central bankers’ two-day meeting at Jackson Hole will be announced tonight. Experts expect some hint on rate hike in the US by Federal Reserve chairwoman Janet Yellen.
Back home, the Reserve Bank of India has announced a new framework to meet the overnight cash requirement of banks. It has not changed the amount of money it is making available to banks but is lending it in many tranches. Also, the apex bank will, for the first time, auction government cash balances.
The Indian rupee appreciated by 20 paise to 60.47 a dollar.
On the stocks action, HDFC Bank saw late surge, up 1.8 percent. Source-based reports (after market hours) indicated that the bank sent fresh petition to government for raising FII investment limit to 74 percent. It is learnt that the bank in petition reiterated that HDFC’s stake in bank ( 16.33 percent stake as of June 2014 ) is not foreign while government officials said foreign investment in HDFC Bank is already above 74 percent. However, HDFC fell 2 percent.
PSU banks gained strength again today with the Bank Nifty rising a percent to end at record closing high of 15819.15. State-owned lenders State Bank of India and Bank of Baroda gained 2 percent each followed by Axis Bank with 0.9 percent while ICICI Bank declined 0.4 percent on profit booking.
Technology sector was the major gainer among sectoral indices with the BSE IT index rising 1.6 percent. Shares of Infosys, TCS, Wipro, Tech Mahindra and HCL Technologies rallied 1-3 percent.
Aluminium major Hindalco Industries jumped over 2 percent whereas Coal India, Bharti Airtel, ITC, Hindustan Unilever and Dr Reddy’s Labs lost 0.5-2 percent.
Hero Motocorp declined a percent as two-wheeler major expects industry-labour issues to heighten in Manesar belt.
Sun Pharma (down 0.1 percent) and Ranbaxy Labs (up 0.6 percent) recovered in last couple of hours of trade after Sun Pharma’s shareholders approved its merger with Ranbaxy. Stocks were trading weak on a possible Rs 242 crore penalty imposed by the US Department of Justice.
In the broader space, sugar stocks saw huge buying interest after sugar import duty increased to 25 percent from 15 percent . Bajaj Hindusthan, Dwarikesh Sugar, Sakthi Sugars, Triveni Engineering and Shree Renuka Sugars gained 3-8 percent.
About 1479 shares advanced while 1539 shares declined on the Bombay Stock Exchange.