The News International Team
The buying spree continued for the sixth consecutive session on Wednesday as the benchmark indices added more than half a percent gains. Private banking & financials, technology and FMCG stocks supported the indices.
The 30-share BSE Sensex rose 184.38 points to 29320.26 and the 50-share NSE Nifty climbed 59.75 points to 8869.10. The broader markets outperformed benchmarks; the BSE Midcap gained 0.9 percent and Smallcap rallied 1 percent.
Experts believe the market may continue its upward momentum till the Budget (to be announced on February 28). On hopes of big announcements, it may also cross 30000-mark on the Sensex but post Budget, the correction may step in, they add.
Predicting the market movement in the short-term is always a challenge and dicey, says Dipen Sheth, head of institutional research at HDFC Securities. But on the brighter side, he says big money has started flowing into domestic mutual funds . He is constructive on the market.
HDFC was the biggest gainer on Sensex, up 3 percent on value buying. ICICI Bank and HDFC Bank gained 0.7-1 percent whereas rival SBI declined 0.4 percent.
Technology stocks too saw buying interest as TCS, Infosys and Wipro were up 0.8-1.9 percent. FMCG majors ITC and HUL advanced more than half a percent.
Power and defence stocks were in focus today on hopes of big announcements in Budget. Report suggests that the government may focus more on renewable energy projects going forward, which pushed Tata Power and NTPC 2.5 percent and 1 percent higher.
NTPC already set its target of having 10,000 MW capacity in green energy sector in next five years, which requires around USD 10 billion. Suzlon Energy jumped another 17 percent. Experts believe Dilip Shanghvi’s bet on Suzlon may be a game changer for the beleagured stock.
Defence stocks like Bharat Electronics, Astra Microwave and BEML rallied 4-16 percent post Prime Minister’s push for the sector. Speaking at the Aero-India show, Narendra Modi committed to doubling output in defence manufacturing with preference to be given to ‘Made in India’ defence products.
Pipavav Defence surged 12.5 percent on market buzz that Mahindra & Mahindra may soon announce buyout of 25-30 percent stake in the company followed by an open offer. Reports suggest that M&M may pump in Rs 3,000 crore into the deal which values Pipavav Defence at an enterprise value of Rs 12,000 crore.
Power and mining stocks were also in focus due to ongoing coal block auctions. BALCO won the Chotia block in Chattisgarh at a price of Rs 3,025 per tonne whose previous owner was Prakash Industries while Jaiprakash Associates won the Mandla North block, JP Power won the Amelia North Coal block and OCL Iron & Steel won Ardhagram coal block. Jaiprakash Associates rallied 2.4 percent, Jaiprakash Power Ventures up 5 percent and OCL Iron shot up 20 percent.
However, Hero Motocorp dropped 5 percent post promoters sold 3.5 percent stake or 71 lakh shares in multiple blocks between Rs 2,664 to Rs 2,718 a share. Promoters hold 36.4 percent stake post this block deal. ONGC, Bharti Airtel and Sesa Sterlite were other major losers on Sensex, down 2-3 percent.
The market breadth remained positive throughout the session. Advancing shares outnumbered declining ones by a ratio of 1605 to 1305 on the Bombay Stock Exchange.
On global front, Asian markets closed higher with the Nikkei rising over a percent. Chinese and South Korean markets were shut today for the Lunar new year. European markets were trading higher with the CAC and DAX rising 0.4-0.8 percent. Greece gained 1.5 percent as government will submit loan extension request to eurozone today.