Nifty will try to target 8,800
We had mentioned in Wednesday’s closing report that NSE’s CNX Nifty may move up, subject to dips, as long as it keeps itself above 8,505. Thursday is the third consecutive session of the 50-share index to book rising gains. The NSE benchmark opened positive but drifted lower and was negative until around 2pm. Thereafter, the Nifty gained momentum and it started moving higher to a five-day high (including today) and closing near to it.
S&P BSE Sensex opened at 28,650 while Nifty opened at 8,677. Sensex hit a low at 28,406, while Nifty went down to the level of 8,599. However managing to rise sharply in the post-noon session, the benchmarks reached upto 28,839 and 8,733. Sensex closed at 28,805 (up 271 points or 0.95%), while Nifty closed at 8,712 (up 84 points or 0.98%). NSE recorded a volume of 101.71 crore shares. India VIX fell 1.68% to close at 20.1575.
After market hours, the government announced CPI data for January 2015 and industrial production data for December 2014. Retail inflation for January came in at 5.11% under a new series with revised base year of 2012. This is against consumer price index (CPI) based inflation of 4.16% in December last year. The government will unveil WPI data for January 2015 on Monday.
Steel and Mines Minister Narendra Singh Tomar has invited global companies to invest in the India's mining space, assuring all support in this regard. Stating that India is rich in mineral resources and a large part remained unexplored, the Minister invited captains of mining industry to invest in exploration sector as well.
Industry body CEAMA has sought reduction in excise duty on consumer durables in the forthcoming Budget to help the sector combat demand slowdown. In June last year, the new government led by Prime Minister Narendra Modi had extended the excise duty concessions by six months to 31 December 2014.
Coming back to stock markets, India Cements (12.32%) was the top gainer in ‘A’ group on the BSE, in spite of posting weak December 2014 results. Its board of directors approved a proposal for reorganisation of Chennai Super Kings Cricket Limited, the company's wholly-owned subsidiary, under which the ownership of the franchise will be held by shareholders of The India Cements Limited.
Bank of India (5.77%) was the top loser in ‘A’ group on the BSE. Its weak bottom line in the December 2014 quarter result pulled the stock lower.
Dr Reddy’s Lab (5.49%) was the top gainer in the Sensex 30 pack, while Hindustan Unilever (1.53%) was the top loser.
On Wednesday, the US indices closed flat.
Asian indices showed mixed performance. Nikkei 225 (1.85%) was the top gainer, while Straits Times (0.74%) was the top loser. European indices were trading in the green. US Futures too were trading higher on the news of truce in Ukraine.
Fears of a default in Greece and an escalating conflict in Ukraine weighed on investor sentiment. However, later, there was news that Russia had announced ceasefire with Ukraine.