The News International Team
Equity benchmarks recouped losses in last couple of hours of trade with the Nifty hitting 7900 level intraday on Monday supported by technology, metals and banking and financial stocks. However, the index fell as much as 64 points (in addition to 100 points fall on Friday) intraday to break the 7800 level on lower-than-expected August industrial output data.
The index climbed 24.30 points to close at 7884.25 and the Sensex advanced 86.69 points to 26384.07 following recovery in global markets. European markets like France’s CAC and Britain’s FTSE were up 0.3 percent each, and even Dow Jones futures rose 0.2 percent (at 16 hours IST).
Back home, the broader markets also rebounded with the BSE Midcap and Smallcap indices gaining 0.3 percent and 0.5 percent, respectively.
The recovery was on expected lines, say experts, adding the Nifty will continue to trade in a tight range of 7800-8200 in near term.
Ramin Nakisa, deputy head of asset allocation at UBS Investment Bank sees a big risk mood and volatility across markets but says it maybe worrisome if VIX rises above 30.
Meanwhile, August industrial output came in at 0.42 percent (as against 0.41 percent in July and 0.43 percent in same month last year) that continued to disappoint for the third consecutive month at lower than expected levels. CNBC-TV18 poll had estimated it at 2.4 percent.
The market will closely watch Reliance Industries’ second quarter earnings and September CPI inflation data that will be announced in evening today.
Infosys gained another 1.4 percent today, in addition to 6.7 percent upside in Friday’s session as brokerages raised target price on the stock post strong Q2 earnings. Barclays raised its target on the stock from Rs 3,800 to Rs 4,650 as it believes new CEO’s plan to embrace newer technologies such as automation and AI to drive growth is a step in the right direction. Its rival TCS rallied 1.5 percent.
Top lenders State Bank of India, ICICI Bank, HDFC Bank and Axis Bank, and housing finance company HDFC gained 1-1.9 percent. Coal Inda, Tata Steel and Tata Power topped the buying list in the Sensex, up 2-3 percent.
However, realty major DLF fell 3.7 percent as in the after market hours news, capital market regulator Sebi has barred the company and its some executives from accessing capital markets for three years. The order was with respect to non-disclosures in its 2007 IPO documents.
Utility vehicle maker Mahindra and Mahindra too declined 3.7 percent followed by Cipla with 2.7 percent loss. ITC, Sun Pharma, L&T, Dr Reddy’s Labs, BHEL and NTPC slipped 0.6-1.9 percent.
Among midcaps, Sintex Industries, Page Industries, Federal Bank, MTNL, Voltas, Motherson Sumi, OBC, Den Networks, SAIL, Jain Irrigation, LIC Housing and Union Bank rallied 3-20 percent.
However, Unitech, Marksans Pharma, Rico Auto, HDIL, Snowman Logistics, Tata Global, Amtek Auto and Godrej Consumer fell 1.5-4 percent.
On the commodities front, Brent crude declined USD 2.10 to USD 88.11 a barrel while NYMEX crude fell USD 1.36 to USD 84.46 a barrel.