The News International Team
The market gained strength in last hour of trade on Monday with the Nifty conquering 8300-mark supported by banks and capital goods stocks ahead of November industrial output and December CPI data that is scheduled to be announced later in the day. The rally in European markets also aided an upside in Indian equities.
The 30-share BSE Sensex rose 126.89 points to 27585.27 and the 50-share NSE Nifty climbed 38.50 points to 8323, continuing uptrend for the third consecutive session. The broader markets outperformed with the BSE Midcap and Smallcap indices gaining 0.6-0.8 percent.
Brain Trust of Deutsche Bank says the brokerage has a December 2015 Sensex target of 33000 and there is a potential of a sovereign credit upgrade of India in the next 12 months.
Globally, European markets like CAC and DAX jumped 1.7 percent each while FTSE was up 0.6 percent (at 16 hours IST). Asian markets closed mixed with the China’s Shanghai falling 1.7 percent.
Brent crude fell below the 49 dollar, down 2.55 percent to USD 48.83 a barrel while US crude lost 2.19 percent to USD 47.30 a barrel after the Goldman Sachs slashed its three-month benchmark crude forecasts to just above USD 40 a barrel.
Back home, the rupee ended stronger today, at 62.16 a dollar compared to Friday’s value of 62.32 on increased selling of the dollar by exporters. Dollar weakness against other currencies also supported the rupee today.
Banking, FMCG, technology, healthcare, capital goods and power stocks supported the market whereas metals, oil & gas and auto stocks lost ground.
Major lenders State Bank of India, ICICI Bank and Axis Bank gained 1.2 percent each ahead of CPI and IIP data. If CPI falls further and IIP improves then that may lead to rate cut sooner than expected, believe experts.
Housing finance company HDFC was up 1.6 percent. Capital goods majors Larsen & Toubro and BHEL surged 1-2 percent. Infosys climbed another 2 percent in addition to a 5 percent rally in previous session post strong set of numbers in Q3FY15.
Hindustan Unilever continued its uptrend for the sixth consecutive session, up 4 percent today in addition to 14 percent upside last week. Its rival ITC was up 0.4 percent.
However, Coal India was the top loser on Sensex, down 4.5 percent on reports of early divestment by government in current financial year.
Cairn India lost more than 3 percent on reports that Anil Agarwal is mulling the merger of cash cows Cairn India and Hindustan Zinc into the Vedanta group firm to create a global natural resources giant to rival Rio Tinto or BHP Billiton. Meanwhile, Tom Albanese of Sesa Sterlite told CNBC-TV18 that these reports of a merger are speculative at this point of time. Hindustan Zinc was down 2 percent and Sesa fell 0.8 percent.
Shares of Reliance Industries, Bharti Airtel, Hero Motocorp, Bajaj Auto, GAIL and Hindalco Industries were down 1-2.5 percent. Private sector lender HDFC Bank declined 0.7 percent. Foreign Investment Promotion Board recommended HDFC Bank’s share issuance proposal for CCEA consideration.
Advancing shares outnumbered declined ones by a ratio of 1653 to 1256 on the Bombay Stock Exchange while on the National Stock Exchange, the advance:decline ratio was 850:587.