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Nifty ends flat on FO expiry day, gains 4% in Nov series

16:08

The News International Team

Equity benchmarks gained marginal strength in late trade with the Nifty closing tad below the 8500-mark on Thursday, the expiry day for November series derivative contracts.

Overall the market remained quiet for the second consecutive session today. The 50-share NSE Nifty climbed 18.45 points to 8494.20 and the 30-share BSE Sensex rose 52.72 points to close at 28438.91.

The broader markets outperformed benchmarks throughout the session. The BSE Midcap and Smallcap indices gained 0.5 percent each.

Experts believe the upmove may continue for next few months. According to them, the market can see 9000 level on the Nifty by second Union Budget of the Narendra Modi government.

Dipan Mehta, member, BSE & NSE says there seem to be no road blocks in sight to stall the market upmove although intuition says market needs to correct to stay healthy.

Neither does he see the Q2FY15 GDP number expected tomorrow to be a material event for the market even if it is a bit disappointing. In fact if the number comes in below expectations then it could make a case for RBI to cut interest rates and drive the government to revive growth, he thinks.

Meanwhile, Krishna Kumar Karwa, Managing Director, Emkay Global feels it is time for retail investors to increase exposure to equities as the economy is likely to see a structural improvement over the next 2-3 years.

For the November series, the Sensex and the Nifty rallied 4 percent each while the CNX Midcap Index was up 5 percent and BSE Small Cap Index climbed 4 percent. Bank Nifty surged 7.5 percent while BSE Auto, Capital Goods, FMCG, Pharma, IT and Realty were up 3-8.5 percent while Metals fell 2.8 percent.

The market clocked the second highest ever (total) turnover of Rs 10.1 lakh crore on expiry day.

BHEL topped the buying list, up 5.73 percent followed by Hindustan Unilever, Hindalco Industries, Punjab National Bank, TCS, M&M, Dr Reddy’s Labs, Bajaj Auto and HCL Technologies with 1-3 percent gain.

Cipla was up 1.7 percent as the company and Strides Arcolab signed an agreement with Medicines for Malaria Venture for the development of rectal artesunate for pre-referral treatment of children with severe malaria.

Strides Arcolab shot up 7 percent as brokerage house Macquarie raised target price on the stock to Rs 1150 from Rs 1000 earlier. “It’s the top small cap pick in the pharma space and recommend aggressively buying at current level,” says the brokerage.

However, Bharti Airtel, Tata Steel, Sesa Sterlite, Larsen & Toubro, ONGC, Ambuja Cements and Grasim Industries fell 0.7-2 percent.

In the broader space, Crompton Greaves fell more than 6 percent as large deals of 5.3 crore shares or 8.48 percent equity traded on the exchanges at Rs 192.15-197 apiece in early trade. Avantha Holdings says this is a onetime transaction by the holding company to reduce debt.

Jaiprakash Associates was down 1.7 percent as the Enforcement Directorate registered a case against the company, accusing of over-production to the tune of Rs 420 crore from its Himachal Pradesh cement plant.

DLF lost 2.5 percent ahead of the SC hearing where the company is seeking exemption from paying the CCI penalty.

Gujarat State Petronet climbed 3 percent as Aptel ruled in favour of the company in the PNGRB tariff order. Nomura says after this verdict the uncertainty and overhang of tariff cuts by the regulator for gas network operators will likely subside.

Ashok Leyland was up 1 percent as Bank of America Merrill Lynch raised target price by 9 percent to Rs 58. The brokerage expects margin to rise to 10.3-10.8 percent over FY16-17 compared to 7.3 percent currently.

Kopran shot up 7 percent as the board of directors approved allotment of 20.5 equity shares and 21.5 lakh warrants at Rs 66 apiece to promoter group company. 8K Miles Software gained 10 percent as the company acquired SERJ Solutions which will enhance healthcare cloud offering.

SMS Pharmaceuticals rallied 3.8 percent and Natco Pharma was up 5.4 percent. The legal disputes between the company and Natco Pharma have been amicably settled, said SMS.

About 1585 shares advanced while 1364 shares declined on the Bombay Stock Exchange.

On the global front, it was a mixed day for most Asian markets, Japan’s Nikkei and Hong Kong’s Hang Seng closed with losses of more than 0.5 percent while China’s Shanghai continued to outperform, up 1 percent today. China has now risen 5.7 percent this week post the rate cut from PBOC. US markets are shut today on account of thanksgiving.

Brent crude sank for the fourth straight day to a fresh 4-year low of USD 76.4 a barrel as ministers of the OPEC are set to meet today. OPEC has increased signals that it would hold off any major production cuts today. The Saudi oil minister Ali Al –Naimi said he believes the oil market will stabilize itself eventually.

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