If Nifty decisively crosses 8,530, bulls have a chance
We had mentioned in Tuesday’s closing report that Nifty, Sensex are precariously poised and that if Nifty is unable to head above 8,550, it may head lower. The major indices in the Indian stock market recovered to close with marginal gains. Bank Nifty, which had closed higher on Tuesday, failed to sustain its gains and closed lower in today’s trading.
The S&P BSE Sensex, which opened at 27,851.81 points, closed at 27,931.64 points -- up 100.10 points or 0.36% from the previous day's close at 27,831.54 points. The Sensex touched a high of 28,021.39 points and a low of 27,721.25 points in the intra-day trade.
According to analysts, recovery in rupee value and the Chinese markets supported the domestic exchanges in the day's trade.
Concerns had grown about the Chinese markets, after various efforts by the government, brokerage firms and mutual funds were not able to arrest the fall.
Some estimates point out that the continuous slide in the exchanges of the $10-trillion strong economy has wiped off 40%-45% of the entire stock value in the last three months.
The Chinese situation has brightened hopes of a delay in the US rate hike, the decision for which will come in the Federal Open Market Committee (FOMC) meet slated for September 16-17.
Higher interest rates in the US are expected to lead the FPIs (Foreign Portfolio Investors) away from emerging markets such as India.
Other concerns such as rupee depreciation were off-set by gains in export-oriented stocks like information technology (IT), pharma and fast moving consumer goods (FMCG). These sectors benefit from the Indian rupee's devaluation and fall in commodity costs.
The Indian rupee touched a new two-year low of Rs65.44 per dollar during the intra-day trade on Wednesday. Notwithstanding the slide, the rupee gained strength later in trade and closed at Rs65.24 per dollar.
Sector-wise, buying was observed in healthcare, consumer durables, capital goods, automobiles and information technology (IT) stocks. However, metals, banks, realty oil and gas and power sectors came under selling pressure.
The S&P BSE healthcare index rocketed by 470.17 points, consumer durables index zoomed by 160.37 points, capital goods index augmented by 91.65 points, automobile index gained by 90.31 points and IT index rose by 84.47 points.
On the other hand, the S&P BSE metal index was down by 103.51 points, bank index receded by 99.01 points, realty index declined by 14.26 points, oil and gas index lost 10.24 points and power index slipped by 1 point.
Major Sensex gainers during Wednesday's trade were: Sun Pharma, up 4.32% at Rs927.25; Lupin, up 2.28% at Rs1,795.35; Wipro, up 2.15% at Rs583.60; Hero MotoCorp, up 1.82% at Rs2,690; and Cipla, up 1.79% at Rs695.90.
The major Sensex losers were: Hindalco Inds, down 3.14% at Rs86.30; State Bank of India (SBI), down 2.08% at Rs278.05; Coal India, down 1.96% at Rs356.90; Axis Bank, down 1.13% at Rs554.60; and NTPC, down 0.94% at Rs126.10.
The top gainers and losers in the major indices in the stock market are given in the table below:
The closing values of major Asian indices are given in the table below: