The News International Team
Though the market remained in consolidation phase for another day Tuesday, the Nifty ended at fresh closing high again supported by banking and financials. The broader markets outperformed benchmarks with the BSE Midcap and Smallcap indices rising 0.7 percent and 0.24 percent, respectively.
The 30-share BSE Sensex climbed 35.33 points to 27910.06 at close and the 50-share NSE Nifty rose 18.40 points to 8362.65.
Experts believe the consolidation may continue in near term due to lack of triggers, but the market in long term may see more than 9000 level on the Nifty.
Expecting the current growth momentum to continue, supported by strong macro and earnings data, UBS Securities remains bullish on Indian equities for Year 2015. Moreover, based on its growth forecasts, it sees Nifty at 9,600 by 2015-end.
“Unlike the last three years, we expect consensus earnings growth estimates of 15 plus for FY16 and FY17 to be met, and ultimately, it is earnings momentum that drives markets,” the report said.
September IIP and October CPI data will be announced on November 12.
Meanwhile, non-banking financials stocks were in focus today after the RBI tightened the bad loan norms on Monday. L&T Finance Holdings told CNBC-TV18 that the company does not see financials being impacted significantly but hopes these are not the final guidelines from RBI.
Major banking and financials scrips like ICICI Bank, HDFC and Axis Bank gained more than a percent followed by HDFC Bank with 0.5 percent gains.
Steel maker Tata Steel climbed nearly 2 percent ahead of second quarter earnings that will be announce on Wednesday. A CNBC-TV18 poll expects profit to fall 35.3 percent year-on-year to Rs 593 crore but operating profit may jump 9.5 percent to Rs 4,057 crore during the same period.
Shares of Mahindra and Mahindra, and Gail India gained 2.35 percent and 1.6 percent, respectively.
However, BHEL was the biggest loser, down 2.4 percent followed by ITC, Infosys, Bharti Airtel and Coal India with 1-1.9 percent loss.
In the broader space, HCC gained 8 percent as Lavasa Corporation received Sebi’s approval for a 750 crore IPO. Amtek Auto surged 17 percent as the company’s subsidiary, Amtek Global raised Rs 1,800 crore of long-term finance from KKR.
Opto Circuits shot up 16 percent as Department Of Industrial Policy & Promotion has floated draft cabinet note on FDI in medical devices. DIPP proposed 100 percent FDI through auto route for medical devices.
Bharat Forge gained 2.5 percent after it posted strong September quarter earnings. Bank of America Merrill Lynch raised target price to Rs 1100, indicating 11 percent driven by 5-8 percent upgrade FY15/16e EPS and stronger cash flow.
Punjab & Sind Bank climbed 13 percent on reporting 2.6 times jump in profit at Rs 112.2 crore in July-September quarter while Eveready was up 1.7 percent after its Q2 profit spiked five-fold to Rs 17.6 crore year-on-year.
Advancing shares outnumbered declining ones by a ratio of 1584 to 1437 on the Bombay Stock Exchange.