The News International Team
It was a lacklustre session for the market on Monday as equity benchmarks saw consolidation after hitting record highs in early trade but the Nifty held its 8300-mark.
The index rose 1.95 points to end at record closing high of 8324.15 while the Sensex fell 5.45 points to 27860.38 on profit booking. Meanwhile, the BSE Midcap and Smallcap indices outperformed equity benchmarks, rising 1 percent each.
Though it was a consolidation day due to lack of triggers, the market will remain in a positive trajectory, say experts, adding the Sensex may see 28000 level soon.
Andrew Holland CEO, Ambit Investment Advisors is bullish on Indian equity market and foresees the Nifty touching 9,000 mark by Budget next year. He feels that pro-reform Narendra Modi could be able to push tough reforms going ahead.
On macros, he expects the Reserve Bank of India (RBI) to cut rates by 50 bps in Q1CY15.
The market will remain shut on Tuesday for Muharram.
Meanwhile, Indian factory activity reported a moderate growth in October with the HSBC Manufacturing Purchasing Managers’ Index (PMI) rising to 51.6 in October from 51.0 in September.
The auto industry was in reverse gear as sales for the month of October missed expectations. The festive season failed to cheer, most auto makers like Mahindra and Mahindra, Maruti Suzuki, Tata Motors and Hero Motocorp reported a 15.4 percent, 1.1 percent, 17 percent and 8 percent drop in total sales year-on-year, respectively. However, TVS Motor Company and Ashok Leyland bucked the trend, reporting a 22 percent and 23 percent jump in October sales, respectively.
Shares of M&M, Hero Motocorp, Bajaj Auto, Maruti Suzuki and Tata Motors fell 1-2.7 percent while TVS and Ashok Leyland gained 0.9 percent and 0.3 percent at close after hitting record highs.
Gail India tanked 6 percent as CLSA downgraded the stock to sell from outperform after second quarter earnings.
The brokerage feels that the state-run natural gas transmission company is trading at 40 percent premium to its 10-year average price to equity. Hence CLSA finds these valuations unsustainable since turnaround in core business is unlikely in next two years and return-on-equities (ROEs) will remain under pressure.
Coal India declined 2.5 percent whereas ICICI Bank, HDFC, Axis Bank and Sesa Sterlite climbed 1-2 percent. Sun Pharma, SBI, Infosys, Reliance Industries and L&T gained 0.2-0.8 percent.
In the midcap space, Opto Circuits, Lanco Industries, Lanco Infratech, Zee Media, Jaiprakash Power, Punj Lloyd, SKS Microfinance, Rico Auto and GVK Power surged 7-16 percent.
Advancing shares outnumbered declining ones by a ratio of 1827 to 1158 on the Bombay Stock Exchange.
Globally, equity markets were a mixed bag. Asian markets like Seoul Composite and Hang Seng fell 0.3-0.6 percent while Shanghai gained 0.4 percent after Chinese PMI data rose to 3-month high of 50.4. European markets were trading marginally lower (at 16 hours IST).