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Sensex at new closing high, record market turnover

17:21

The News International Team

It was a record breaking day on Dalal Street as bulls went out on a rampage. The Sensex hit record high at 27358 intraday. The 30-share index was at record closing high, up 248.16 points or 0.9 percent at 27346.33. The Nifty, too, made new high breaching its previous high of 8180. The Nifty ended October F&O series expiry at 8169.20 up 78.75 points or 0.9 percent.

More records were shattered today with total turnover crossing the Rs 10.40 lakh crore mark for the first time.

Not at all surprised by the new highs, Raamdeo Agrawal, Motilal Oswal feels that lower oil prices, diesel deregulation and Maruti earnings have added zing to the market. He is optimistic that the market will see more new highs in the days to come.

Ajay Srivastava, Dimensions Consulting adds that FIIs have been driving the market. Foreign institutional investors (FIIs) have bought Rs 785.61 crore (provisional) in equities today.

Analysts attribute outcome of the Federal Reserve adding to the positive sentiment. “It is more to do with global uncertainty settling down, US stabilising because that was plaguing us and in addition to that some measures that the government took over the last 15 days before the new election code was announced. So a combination of oil, global factors etc is what has brought back once again to test the previous highs,” Sanjay Dutt, Quantum Securities said in an interview.

The US Federal Reserve’s historic USD 4.5 trillion dollars asset purchase programme or quantitative easing (QE) has reached the end of the road. Justifying the move the Fed  has said last night, that there has been a substantial improvement in the outlook for the labour market since the inception of QE.

However, even after the end of the QE, US monetary policy remains ultra loose with an interest rate range of between 0-0.25 percent.

Gainers & losers

Oil & gas and IT stocks led the market with some smart gains. Reliance, Hindalco, TCS, GAIL and Infosys gained over 2 percent each.  Buoyed up by stellar September quarter earnings, Tech Mahindra ended with 3 percent gains. Brokerages are upbeat on the stock, recommending to buy it. Credit Suisse maintains outperform rating on the stock as it looks attractive with increasing scale and strong growth expectations.

It was a corporate earnings heavy day on Dalal Street. Maruti was at record high touching Rs 3297 per share after its September quarter results beat estimates. Investors are also excited as its board has decided to recommend an increase in the FII limit to 40 percent, broadly the level of public shareholding in the stock. It is subject to approval in general meeting and subsequently request to RBI for notification. The car maker’s second quarter net profit rose 28.8 percent to Rs 863 crore led by other income and higher revenue. Profit in the year-ago period was Rs 670.2 crore.

Revenue grew by 17.5 percent to Rs 12,304 crore in the quarter ended September quarter 2014 compared to Rs 10,468.1 crore in same quarter last year driven by higher sales volumes.

India’s largest private sector lender ICICI Bank met street expectations on profit and net interest income front but its asset quality and provisions were hit in the quarter ended September 2014. Net profit of the bank climbed 15.2 percent year-on-year to Rs 2,709 crore during the quarter supported by non interest income and stable net interest income.

YES Bank closed at new high as its second quarter profit after tax rose a whopping 30 percent to Rs 482.5 crore on lower provisions and higher net interest income but was impacted by higher operating expenses. Profit in the year-ago period was Rs 371 crore.

Realty stocks also supported the indices as government eased FDI norms for the sector.

Sesa Sterlite, Cipla, M&M, Tata Power and Hero Moto Corp were laggards in the Sensex.

Among the midcaps Tilak Finance, SRF, Century Plyboard, Symphony and Andhra Bank were top gainers. Andhra Bank’s second quarter net profit has doubled, up 105 percent, to Rs 144 crore against Rs 70 crore on a year-on-year basis. Gross NPA stood at 5.99 percent versus 5.98 percent and net NPA at 3.86 percent versus 3.89 percent on a sequential basis.

Midcap bank stocks dragged the indices, as September quarter results of most banks were disappointing.  State Bank of Bikaner, State Bank of Travancore and IOB fell 4-7 percent. Pipavav Defence and Raymond were down 5 percent each.

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