The News International Team
It was a flat session on Dalal Street even as major indices continued to march into unchartered territories. The Sensex scaled the 28000-mark for the first time ever in early session. The 30-share index ended up 55.50 points at 27915.88. The Nifty also hit a new peak of 8363.65 in early trade today. It closed up 14.15 points at 8338.30.
Another record-breaking day for the midcaps with the index going past the 10,000 level.
Banks and pharma stocks added strength to the indices while metals and oil & gas were under tremendous selling pressure.
Axis Bank, Sun Pharma, Dr Reddy’s Labs, ICICI Bank and SBI were top gainers in the Sensex. Among the losers were Hindalco, Sesa Sterlite, Coal India, Hero MotoCorp and Bharti Airtel.
Bharti fell 3 percent after the telecom major called off its plans to acquire business and assets of Mumbai-based Loop Mobile, for about Rs 700 crore, as the Department of Telecom is yet to clear the deal.
Ipca Labs lost over 10 percent as investors grew worried on Credit Suisse’s downgrade to underperform from neutral.
Rahul Singh of StanChart Securities feels that cyclicals have not yet reached euphoria levels, and banks can rally some more on policy reforms, rate cuts and deceleration in inflation.
“We have seen a spate of disappointments from the consumer names, almost through across staples and discretionary we have seen disappointments; that is one segment which is looking like it should take a breather maybe a long breather at these levels. That is the sector I would focus on to take money off and put into cyclicals like banks and maybe even oil and gas,” he said in an interview to CNBC-TV18.
Speaking at the World Economic Forum, India summit Finance Minister Arun Jaitley reiterated the government’s commitment to reforms. However, he said reforms will be carefully calibrated for each sector so that they really serve India’s need.
Meanwhile, in the Asian marketsJapanese stocks rose to new seven-year highs on Wednesday as heavyweight Fast Retailing Co surged on strong monthly sales, while exporters got a boost as the dollar rose against the yen after US mid-term election results have showed Republicans made major gains.
The Nikkei benchmark ended 0.4 percent higher to 16.937.32, the highest closing level since October 2007.
Brent crude dropped further below USD 83 a barrel, stretching losses into a fifth session, as weak economic data from top energy consumer China stoked worries about demand in a market that is already battling a deepening global supply glut.
Indian equity and currency market will remain shut on November 6 on account of Guru Nanak Jayanti.