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Sensex, Nifty consolidate; tech, oil stocks lend support

11:00

The News International Team

The market is consolidating for second day with major support from IT, oil, infra and metals. The Sensex is up 34.26 points at 27120.19 and the Nifty is up 15.20 points at 8111.15. About 1488 shares have advanced, 847 shares declined, and 103 shares are unchanged.

ONGC, GAIL, Hindalco, Bajaj Auto and L&T are major gainers in the Sensex. Among the losers are HDFC, Coal India, Bharti Airtel, BHEL and Hero MotoCorp.

The only reason for the market to correct right now is to take catch its breath, before it takes off again, as there is nothing in negative lurking around the corner that could halt the equity market bull run. That’s the word coming in from CNBC-TV18’s Udayan Mukherjee, who believes a correction, if and when it happens, is unlikely to be a massive one.

Mukherjee says it is heartening to see that the market, while it makes new highs almost every other day, is punishing stocks with faulty fundamentals.

“This tells you the rally has not been an indiscriminate one. In the past you would see many rallies, which have often meant anything high beta has actually outperformed the Nifty. That has not happened this time around. So many infra stocks are down in the last three months. Real estate as a sector has got smashed up and any stocks, without mentioning names, which owed its past gains to political patronage of some kind or has not be able to fix their balance sheet despite this kind of buoyant equity market are getting punished,” he said.

The European Central Bank cut interest rates and launched a large stimulus package for the flagging euro zone economy on Thursday. Traders are now awaiting the US nonfarm payrolls for further direction.

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