The News International Team
It was yet another volatile session on Dalal Street on Thursday. The market advanced in last hour of trade with the equity benchmarks closing with marginal gains (ahead of long weekend). Defensives like healthcare, FMCG and index heavyweights HDFC twins led the major support whereas technology, metals, telecom and capital goods saw profit booking.
The 30-share BSE Sensex rose 68.22 points to 29448.95 and the 50-share NSE Nifty climbed 15.10 points to close at 8937.75 after yesterday’s fall.
The broader markets outperformed benchmarks with the BSE Midcap and Smallcap indices gaining 0.7 percent each.
Market experts expect the market to continue its upmove higher from here on hopes of soon implementation of reforms announced recently.
Aditya Narain of Citi says FIIs are overweight on India by 400-600 basis points, adding a December 2015 Sensex target is 33000.
For the week, the equity benchmarks closed higher with the Sensex rising 0.3 percent and the Nifty up 0.4 percent. The broader markets outperformed benchmarks. The CNX Midcap and BSE Smallcap indices gained 1.7 percent each.
The market will remain shut on Friday for Holi.
Ratings agency Moody’s has also given a boost to India’s sovereign outlook, saying the move to target inflation is credit positive for India. The RBI yesterday surprised the street with a 25 basis points repo rate cut and says the CPI inflation should breach 4 percent target by end of January 2018.
Moody’s believes the move increases policy transparency and predictability.
On the second day of second round of the coal auction today, bidding for one of the mines in Jharkhand has been completed while bidding was opened for an Odisha mine. Trimula Industries bagged Meral mine for non-power sector in Jharkhand, taking the total number of mines won by the companies to five.
There has been aggressive bidding for spectrum on day two of the auction after bids worth over Rs 60,000 crore on day one on Wednesday. Bharti Airtel, Vodafone and Idea Cellular remained under pressure to retain the 900 megahertz band.
Sun Pharma hogged the limelight again, up 3.24 percent and even its subsidiary Sun Pharma Advanced Research Company saw huge buying interest, up 10 percent. Both stocks had rallied 5-6 percent in previous session on getting US FDA approval for anti-epileptic drug. Its rivals Cipla and Dr Reddy’s Labs climbed 1.8 percent and 1.5 percent, respectively.
HDFC Bank and HDFC rallied around 1.8 percent each whereas banking majors State Bank of India and ICICI Bank closed marginally lower.
In FMCG space, Hindustan Unilever climbed 2.5 percent and cigarette major ITC gained 0.5 percent.
Metals stocks closed in red again amid ongoing coal block auction. Hindalco Industries, Sesa Sterlite, Tata Steel and Coal India fell 1-3 percent. Technology majors TCS and Infosys were down 1.7 percent and 0.9 percent, respectively.
Cairn India slipped 2 percent as the oil major cut its capital expenditure (capex) plan for the next financial year post fall in oil prices.
In the broader space, Pipavav Defence lost 10 percent after Anil Ambani’s Reliance Infrastructure announced an open offer for the company which is at a 15 percent discount to yesterday’s closing price. Reliance Defence announced acquisition of Pipavav in an all-cash deal last evening. Reliance Infrastructure gained 3 percent.
Aban Offshore rallied 4 percent as its subsidiaries have redeemed outstanding bonds worth Rs 1,335 crore on the due date.
On the global front, China weighed on Asian markets. Shanghai and Hang Seng took a beating, down 1 percent each after China lowered growth target to 7 percent for 2015, the lowest growth target in 11 years, down from the 7.5 percent last year. However, Japanese Nikkei finished a quarter of a percent higher and the South Korean Kospi was flat.
European markets gained 0.2-0.6 percent (at 16 hours IST) ahead of European Central Bank meeting. Investors are expecting the ECB to announce exactly when it will start its euro 1 trillion bond buying program.
Crude prices turned positive after yesterday’s sharp cuts. Brent crude moved above USD 61 a barrel, up 1.4 percent while WTI NYMEX crude climbed 1.5 percent to USD 52.3 a barrel. The optimism came on the back of news that no deal has been reached yet on the duration of an agreement on Iran’s nuclear programme. That meant there is no threat of a rise in Iranian oil supply just yet.