Resuming after a day’s break, the Indian market was in the positive for the entire session and closed in the green for the third day in a row. The end of the stalemate in Parliament and Goldman Sachs’ upgrade of India to ‘overweight’ from ‘market-weight’ also supported the gains. In our previous closing report, we had mentioned that the Nifty should continue to register a higher high and a higher low to maintain the upmove. For the third trading day today the Nifty managed to make a higher high and a higher low and closed at it highest points since 27 April 2011. At present the index is in a strong uptrend and a close below any previous day’s low may be a sign of reversal. The National Stock Exchange (NSE) saw a high volume of 111.71 crore shares on account of the November F&O contract expiry and an advance decline ratio of 1018:709.
The Indian market, which opened after a day’s holiday, started in the green tracking firm global cues and hopes that the logjam in Parliament will end with the Lok Sabha speaker Meira Kumar allowing a discussion that involves voting on the issue of allowing FDI in multi-brand retail.
The Nifty opened 10 points higher at 5,737 and the Sensex resumed trade at 18,874, up 32 points over its previous close. The opening figure on the Sensex was its intraday low while the Nifty’s low was at 5,736.
An upgrade of India to ‘overweight’ from ‘market-weight’ by global investment bank Goldman Sachs boosted sentiment in the domestic market today. The benchmarks gained strength as trade progressed on buying interest in consumer durables, fast moving consumer goods, realty and auto sectors.
A positive opening of the European markets boosted domestic investor sentiment in the second half of the trading session. The market continued to trade firm in the late session with the benchmarks hitting their highs in the last hour. At this point, the Nifty rose to 5,834 and the Sensex jumped to 19,205.
A minor bout of profit towards the end of the session resulted in the market closing off the highs. The Nifty gained 98 points to 5,825 and the Sensex jumped 329 points to settle above the 19,100 mark at 19,171.
Although the broader indices settled higher, they lagged the Sensex. The BSE Mid-cap index surged 1.26% and the BSE Small-cap index rose 0.45%.
With the exception of the BSE IT (down 0.36%) and BSE TECk (down 0.05%), all other sectoral gauges closed up. The top gainers were BSE Realty (up 3.38%); BSE Bankex (up 2.76%; BSE Auto (up 2.08%); BSE Capital Goods (up 1.55%) and BSE Consumer Durables (up 1.45%).
Twenty six of the 30 stocks on the Sensex closed in the positive. The main gainers were Bajaj Auto (up 5.01%); ICICI Bank (up 4.59%); Tata Motors (up 4.45%); Cipla (up 3.59%) and Sterlite Industries (up 3.09%). The losers were Hero MotoCorp (down 1.035); Infosys (down 0.98%); BHEL (down 0.71%) and Maruti Suzuki (down 0.39%).
The top two A Group gainers on the BSE were—Indiabulls Financial Services (up 10.61%) and Suzlon Energy (up 8.80%).
The top two A Group losers on the BSE were—Apollo Hospitals Enterprise (down 7.95%) and NHPC (down 3.64%).
The top two B Group gainers on the BSE were—ABG Infralogics (up 20%) and De Nora India (up 19.99%).
The top two B Group losers on the BSE were—Kiri Industries (down 19.75%) and Spectacle Infotek (down 11.56%).
Out of the 50 stocks listed on the Nifty, 43 stocks settled in the positive. The major gainers were ICICI Bank (up 4.92%); Asian Paints (up 4.51%); Tata Motors (up 4.46%); Bajaj Auto (up 4.11%) and Cipla (up 4.02%). The main losers were Infosys (down 1.40%); Maruti Suzuki (down 0.84%); Hero MotoCorp (down 0.83%); BHEL (down 0.76%) and HCL Technologies (down 0.45%).
Markets in Asia, with the exception of the Shanghai Composite, closed in the positive on hopes that US policymakers would reach a deal on avoiding higher taxes. Meanwhile, Japanese retail sales declined 1.2% in October on an annual basis, adding to the signs of a slowdown in the country.
The Hang Seng advanced 0.99%; the Jakarta Composite gained 0.33%; the KLSE Composite added 0.05%; the Nikkei 225 surged 0.99%; the Straits Times climbed 1.13%; the Seoul Composite jumped 1.15% and the Taiwan Weighted settled 0.92% higher. Bucking the trend, the Shanghai Composite declined 0.51% with brokerages leading the losers on speculations of a reduction in trading fees.
At the time of writing, key markets in Europe were trading 0.65% to 1.03% higher and the US stock futures were in the positive, indicating a green opening for US stocks.
Back home, foreign institutional investors were net buyers of shares totalling Rs1,082.74 crore on Tuesday while domestic institutional investors were net sellers of equities amounting Rs208.50 crore.
Unichem Laboratories today said it has received the USFDA’s approval to market Tizanidine tablets, a drug used to relieve muscle pain, in the US market. The approval is for tablets in strengths of 2 mg and 4 mg. The stock surged 3.26% to close at Rs186 on the NSE.
Amid government directive to PSUs to invest their surplus funds, Coal India (CIL), which is sitting on huge cash-pile, has lined up Rs 50,000 crore investment plans for the next five years. “If they (PSUs) have not invested and they still have surplus cash, they have been told to invest... The principle is use it or lose it,” the finance minister had said. Coal India gained 1.32% to close at Rs368.10 on the NSE.
Agro-chemical firm Bayer CropScience today said that it has sold its property at Thane in Maharashtra for Rs1,250 crore to Agile Real Estate. The company said it has entered into two agreements and executed all other incidental documents with Agile and also undertaken all the requisite acts to close the transaction. The stock closed 2.22% higher at Rs1,225 on the NSE.