Home / Financial News / Nifty breaks 7,950; BSE Metal index slumps 2%

Nifty breaks 7,950; BSE Metal index slumps 2%

Markets came off their record highs after power-related shares declined as the Supreme Court said coal blocks alloted via screening panel since 1993 are illegal. 

The Supreme Court today said that guidelines were breached in coal block allocations during the UPA regime and said the terms of allotment were illegal.

At 2.25 PM, the 30-share Sensex is up 140 points at 26,559 after hitting a record high of 26,631 and the 50-share Nifty is up 34 points at 7,947 after touching a record high of 7,966.
Among broader markets, BSE Midcap and Smallcap indices have gained between 0.3-1%. 

As the country grapples with sub-par monsoon and its impact on the overall economic growth, Nomura in its recent report has revised upwards its FY15 and FY16 GDP (gross domestic product) target and believes that growth indicators are perking up.

In a recent report, they suggest that though below-normal monsoon will drag down agriculture growth, industrial growth has, however, turned a corner in second quarter of the calendar year 2014 (April-June period), ahead of the elections, and at a much faster pace relative to the Nomura’s expectations.

The Indian rupee is trading marginally higher at Rs 60.44 to the US dollar compared to the previous close of Rs 60.46. Domestic stocks trading at record highs helped improve sentiment even as the US dollar gained against the euro and the Japanese yen.

Global Market:

Asian markets were trading firm with Japanese shares gaining the most led by exporter shares after the yen weakened against the US dollar. The benchmark Nikkei ended 0.5% higher at 15,613. Straits Times and Hang Seng were up nearly 0.5% each while Straits Times gained 0.4%.

Furthermore, European markets are trading firm with DAX and CAC up 1% each, while FTSE is trading flat with a negative bias.

Sectors & Stocks:

On the sectoral front, BSE IT index has spurted over 1% followed by counters like Auto, Banks, Capital goods, FMCG, Healthcare and Oil & Gas, all gaining by nearly 1% each. However, BSE Metal index has declined by almost 1%.

The main gainers on the Sensex are BHEL, TCS, Dr Reddy’s, Maruti Suzuki, HDFC, SBI and HUL, all surging between 1-3%.

Among individual names, Maruti Suzuki has gained neraly 2% after Credit Suisse raised the target price to Rs 3,500 per share. The brokerage believes the launch of small diesel engines will be more important than new car launches and expects the company to grow faster with a 5 percent market share gain in next 3 years.

Tobacco-to-FMCG conglomerate ITC has replaced Tata group’s IT giant TCS as the country’s most admired company on a Fortune magazine list and is up over 1%.

On the losing side, Hindalco, Sesa Sterlite, Tata Power, Tata Steel and GAIL have slumped between 1-6%.

Among other shares, PI Industries has soared 16% to Rs 508, also its record high on the National Stock Exchange (NSE), on the back of heavy volumes.

The market breadth in BSE remains marginally positive with 1,530 shares advancing and 1,371 shares declining.


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