After a consolidation in narrow range, the 50-share NSE Nifty closed marginally higher on Thursday, the expiry day for September Futures & Options contract. The broader markets slightly outperformed benchmarks with the BSE Midcap and Smallcap indices rising 0.2 percent and 0.6 percent, respectively.
The Nifty rose 22.55 points to 7868.50 and the Sensex gained 40.51 points at 25863.50. The market breadth was positive as about 1444 shares advanced against 1238 shares declined on the Bombay Stock Exchange.
Analysts do not expect the October series to be good, citing current global growth concerns. RBI’s monetary policy on September 29 will be key event to watch out for in near term.
Siddharth Bhamre expects the market to be negative in initial part of October series irrespective of RBI lowering rates or maintaining status quo. According to him, resistance range of 8050-8100 is the optimistic scenario if RBI cuts interest rates by 50 basis points.
Suhas Harinarayanan, JM Financial says until the PSU capex picks up, he expects domestic recovery to remain stuck in the ‘early to mid-cycle’ stage, given that tepid industrial recovery was led by replacement demand in certain sectors and exports until now. Also read – At 7,500 Nifty, all domestic negatives priced in: Dalton
For September series, the Nifty lost 1 percent and the Sensex declined 1.4 percent while for the truncated week, benchmark indices shed 1.4 percent on outflow of foreign money and weak global cues.
The market will remain shut on Friday for Bakri Id holiday.
Global markets were mostly negative today. Nikkei plunged 2.8 percent after Japanese PMI data declined to to 50.9 in September against 51.7 in August, falling for the first time in 3 months. Hang Seng lost 1 percent while China’s Shanghai ended 0.9 percent higher. European markets were weak; Germany’s DAX was down 2 percent and France’s CAC dropped 1.4 percent while Britain’s FTSE slipped 0.7 percent. Fed chair Janet Yellen’s speech at the University of Massachusetts later today will be keenly watched.
Meanwhile, Prime Minister Narendra Modi reached the New York for his 5-day visit to the US. A meeting with President Barack Obama & UN Secretary General, Ban Ki-moon along with a high profile visit to the Silicon Valley is on the agenda.
Back home, technology and select pharma stocks gained while oil, capital goods and select metals stocks lost ground.
Lupin was the top gainer on Sensex, up 3.55 percent after Nomura and Credit Suisse upgraded stock to outperform on strong product approvals. Credit Suisse raised its target price by 27 percent, citing high upside potential from the company’s diabetes drugs.
CNX IT rallied more than 2 percent on depreciation in rupee against dollar. Infosys jumped 2.2 percent while its peers TCS and Wipro gained more than 1.5 percent. HCL Technologies was up 2.75 percent; CLSA has reiterated its buy rating on stock as it believes infrastructure management services (IMS) will drive its near-term growth.
The Indian rupee closed at 66.16 a dollar, down 18 paise compared to 65.98 in previous session.
ITC, HDFC, Maruti Suzuki, Bajaj Auto and GAIL were other prominent gainers, up 1-2 percent. However, ICICI Bank, L&T, Reliance Industries, ONGC, Tata Motors, Bharti Airtel, Coal India and Hindalco Industries plunged 1.5-4 percent.
Tata Steel was down 2.6 percent. Macquarie has slashed FY16-17 earnings per share by 88-55 percent on lower price assumptions and target price to Rs 194.
In the broader space, IDFC gained 2 percent. Chairman Rajiv Lall says IDFC Bank will start operations with 15 percent of its assets classified as stressed and NPA levels of 2-2.25 percent.