The current upmove may have more steam left. Nifty likely to hit 6,000
The Sensex and the Nifty on Tuesday recorded the highest percentage gain since 27 May 2009 on massive short covering after the rupee sharply dipped again. The Reserve Bank of India (RBI) measures in the past week and the US jobs data falling short of estimates have helped too. The indices ended positive for the fourth consecutive session. The BSE 30-share Sensex, which opened higher at 19,448 hit an intra-day low of 19,445. By the end of the session, Sensex breached the 20,000 level to hit an intra-day high of 20,013 and closed at 19,997 (up 727 points or 3.77%). The NSE Nifty, which opened at 5,739 hit a low almost at the same level, but went to hit an intra-day high of 5,905 before closing at 5,897 (up 216 points or 3.81%). The National Stock Exchange (NSE) recorded a marginally higher volume of 70.79 crore shares.
All indices on the NSE closed in the positive. The top five gainers were Auto (5.98%); FMCG (5.38%); Infra (4.91%); Consumption (4.74%) and MNC (4.55%). Of the 50 stocks on the Nifty, 41 ended in the green.
The top five gainers on Nifty were Tata Motors (9.82%); Bharti Airtel (8.37%); Ambuja Cements (7.66%); Hero MotoCorp (7.19%) and ACC (7.02%). The top five losers were NMDC (2.27%); BPCL (1.50%); Bank of Baroda (1.35%); Cairn (1.28%) and Dr Reddy (0.86%).
RBI on Friday said that it would allow non-residents to buy stocks of listed domestic companies through the foreign direct investment (FDI) route. The new rule would make it easier for foreign promoters, who were earlier able to raise their stakes only through separate processes such as open market offers, to buy shares in listed companies.
The government is also set to announce more steps over the next few days to curb non-essential imports, with expectations growing for a hike in subsidized diesel prices that would ease concerns about the government's finances.
India's merchandise exports posted double-digit growth in the month of August, while imports were "contained", Trade Secretary SR Rao said on Monday. As a result, the trade deficit fell to $10.91 billion in August from $12.27 billion in the previous month.
India’s rupee rose as much as 5.6% in the past four days, the biggest gain since at least 1973 according to the biggest gain in data compiled by Bloomberg.
The US indices closed in the green on Monday. Non-farm payrolls in the US climbed 169,000 in August, official data showed on Friday 6 September, less than the 180,000 median estimate of a Bloomberg survey.
Russia on Monday proposed to work with Damascus to put its chemical weapons under international control, a move that President Barack Obama said could be "potentially positive". Asian indices ended in the positive. Jakarta Composite, the top gainer, was up 3.98%.
China's industrial output grew at the fastest pace in 17 months in August, adding to signs of a rebound this quarter that include a pickup in export gains. Factory production rose 10.4% from a year earlier, the National Bureau of Statistics said in a statement in Beijing today. Retail sales rose 13.4% in August higher than 13.2% gain in the previous month.
In France, factory output slid for a third month in July, underscoring the government’s struggle to revive growth. Oil fell on speculation Russia’s plan to get Syria to surrender its chemical weapons will help avert a US strike.
European indices were trading in the green. The US Futures too were trading higher.