Home / Business / Money / Positive start to 2016: Nifty ends above 7950, Midcap rallies

Positive start to 2016: Nifty ends above 7950, Midcap rallies


TheNewsInternational Team

The market started off year 2016 as well as January series on a positive note with the Nifty closing at two-month high on Friday while the broader markets outperformed benchmarks. Banks, capital goods and select auto stocks were leading gainers. Global markets were shut today for new year holiday.

Initially benchmark indices reacted to weak November core sector data, which contracted (-1.3%) after expanding for six consecutive months. The market gained strength in last couple of hours of trade. The 30-share BSE Sensex rose 43.36 points to 26160.90 and the 50-share NSE Nifty ended above 7950, up 16.85 points to 7963.20.

The BSE Midcap and Smallcap indices gained 0.9 percent each. The market breadth remained strong throughout the session; about 1988 shares advanced against 844 declining shares on the Bombay Stock Exchange.

December quarter earnings would be the key trigger for market in near term followed by FOMC and RBI policy meetings, say experts.

“The new year is likely to bode well for Indian equity markets, says Samir Arora of Helios Capital.

He advises investors to look at a market as an accumulation of small, positive changes, rather than waiting for a big blockbuster reform.

For the week, the Sensex and Nifty gained more than 1 percent while the NSE Midcap index rose 1.5 percent.

Maruti Suzuki gained 0.4 percent today after better-than-expected auto sales data for December. The country’s largest car manufacturer sold 1.19 lakh units during the month, up 8.5 percent year-on-year against forecast of 4.4 percent growth.

Eicher Motors rallied 3 percent after reporting a 44.3 percent year-on-year growth in commercial vehicle sales while Mahindra & Mahindra declined 0.6 percent after registering a 4 percent growth in December sales against forecast of 11 percent. Tata Motors rallied 2.66 percent while Bajaj Auto and Hero Motocorp fell 0.5 percent ahead of monthly sales data.

Sun Pharma and Sun Pharma Advanced Research Company lost 0.5-1 percent after SPARC says it expects a further delay in royalty income for company from Xelpros, Elepsia EXRTM. “We have initiated steps to mitigate possible adverse impact on company from delay,” it adds.

HDFC was down 0.4 percent as the housing finance company says profit on sale of investments declined to Rs 57 crore in Q3FY16 from Rs 113 crore in same quarter last year.

Among others, Adani Ports, SBI, L&T, Coal India and BHEL were leading gainers, up 1-3 percent while GAIL and NTPC fell more than 1 percent.

In broader space, Jet Airways, SpiceJet and InterGlobe Aviation surged 8-9 percent after a 10 percent cut in aviation turbine fuel announced by oil marketing companies post further fall in crude oil prices. Fuel price contributes around 32 percent to operating cost of airline companies.


Check Also

Rupee recovers 6 paise to 67.01

The rupee today recovered some lost ground by rising 6 paise to ...

Notes ban to have positive impact on economy

NEW DELHI: The government’s demonetisation move has led to widespread adoption of ...