The News International Team
The market remained higher in trade for the second consecutive session with the 50-share NSE Nifty closing above 8600 level, led by bank stocks again.
The index climbed 61.85 points to 8627.40 while the 30-share BSE Sensex rose 178.35 points to 28533.97. The broader markets outperformed benchmarks with the BSE Midcap and Smallcap indices rising 1.5 percent each.
Experts believe the upside may continue till Budget (to be announced on February 28). However, they see some correction post Budget.
A pre-Budget rally is likely, but that is more because the market has already seen a good correction, says Ajay Srivastava of Dimensions Consulting.
According to him, barring a handful of banking stocks and the top 20 companies, FIIs have been generally cautious on India. However, domestic investors have aggressively bought turnaround stories in the hope of an improvement in earnings.
Private banks, FMCG, metals, select technology and healthcare stocks supported the market. However, capital goods and oil stocks were mixed.
Axis Bank spiked nearly 3 percent followed by ICICI Bank with 1 percent gain and HDFC Bank with 0.3 percent upside. However, State Bank of India fell 0.4 percent.
Jindal Steel & Power topped the buying list, up 6 percent after Delhi High Court directed the government to withdraw two coal blocks of JSPL from auction. Tata Steel, Sesa Sterlite and Coal India gained 1-2 percent.
Aluminium major Hindalco Industries advanced 0.44 percent ahead of Q3 earnings (on Thursday). A CNBC-TV18 poll sees a 26 percent rise in profit and 21 percent increase in revenue for Q3.
TCS remained confident of beating NASSCOM’s 12-14 percent growth guidance for FY16. Natarajan Chandrasekaran, CEO & MD told CNBC-TV18 that the company is seeing growth across markets, adding government’s push for digital India will aid revenues. The stock gained 0.7 percent.
Among others, Maruti Suzuki, NTPC, HUL and Bajaj Auto were other prominent gainers, up 1-2 percent. However, ONGC shed 2.6 percent. M&M and Tata Motors were down 0.8-0.9 percent.
However, BHEL lost 2.4 percent ahead of Q3 earnings tomorrow. A CNBC-TV18 poll expects a 38 percent decline in profit and 13 percent fall in revenue.
In the broader space, Fortis Healthcare, NCC, Pipavav Defence, HCC, Syndicate Bank, Jindal Saw, GMR Infra, Texmaco, Aurobindo Pharma, Rolta, Wockhardt, Ashok Leyland, Adani Power and DCB Bank surged 6-20 percent.
However, Intellect Design, J&K Bank, HDIL, JP Infra, Muthoot Finance and NIIT Technologies slipped 2-3 percent.
Advancing shares outnumbered declining ones on the Bombay Stock Exchange by a ratio of 1733 to 1071.
Global markets were mixed as investors are cautious ahead of a meeting of eurogroup finance ministers in Brussels to discuss a solution to the Greek debt crisis. In Asia, Shanghai gained 0.5 percent while Hang Seng declined 0.9 percent. European markets were trading marginally lower (at 16 hours IST).