Assertion of the government to pursue economic reforms to put the economy back on the growth track and support from the Asian markets led the market higher for the fourth day in succession. Today the Nifty closed at 5,788, its highest since 28 April 2011. The index gained 1% on the government’s reforms proposal, the highest in the past eight trading days (including today). The benchmark may continue the uptrend, however, look out for 5,725 after which the index may see some reversal. The National Stock Exchange (NSE) saw a higher volume of 100.38 crore shares and an advance decline ratio of 1093:710.
The Indian market witnessed a gap up opening tracking firm global cues and on expectations that the government would take up insurance and pension reforms today. The US markets closed in the green overnight, but the Dow some of its gains as technology major Hewlett Packard said that its earnings next year would see a sharp decline. Similarly, Asian markets were in the green on firm economic data from the US.
Back home, the Nifty opened at 5,752, 21 points higher, and the Sensex gained 70 points to resume trade at 18,940. The opening figures on both benchmarks were their intraday lows. All-round buying saw the market moving northwards in subsequent trade.
Meanwhile, the rupee continued to rule firm at 51.97 against the greenback in morning trade on persistent dollar selling by banks and exporters in view of sustained capital inflows from foreign funds into the equity market despite firm dollar overseas. The rupee had resumed higher at 52 per dollar and moved in a range of 51.86-52.10, before quoting at 51.97 at 1045 hrs local time.
The upmove helped the BSE Sensex cross the psychological level of 19,000 in early trade. The market extended its gains as trade progressed. The benchmarks hit their highs at around 1.00pm. At the highs the NSE Nifty breached the 5,800 mark and stood at 5,807 while the Sensex jumped to 19,107.
However, profit booking at higher levels and a lower opening of the key European markets resulted in the local indices paring some of their gains in post noon trade.
The indices were range-bound in late trade and settled higher let by realty, consumer durables and banking stocks, making it the fourth positive close in a row. The Nifty climbed 56 points (0.98%) to 5,788 and the Sensex surged 188 points (1%) to finish trade at 19,058.
The broader indices underperformed the Sensex today. While the Sensex closed 1% higher, the BSE Mid-cap index gained 0.41% and the BSE Small-cap index rose 0.35%.
The top sectoral gainers were BSE Realty (up 4.94%); BSE Consumer Durables (up 2.44%); BSE Bankex (up 1.92%); BSE Capital Goods (up 1.89%) and BSE Power (up 1.57%). The losers were BSE Healthcare (down 0.92%); BSE IT (down 0.28%) and BSE Auto (down 0.08%).
Twenty of the 30 stocks on the Sensex closed in the positive. The major gainers were BHEL (up 6.57%); ICICI Bank (up 2.93%); Dr Reddy’s Laboratories (up 2.165); State Bank of India (2.15%) and Maruti Suzuki (up 1.97%). The key losers were Cipla (down 3.86%); Mahindra & Mahindra (down 1.24%); Bajaj Auto (down 1.05%); Hero MotoCorp (1.02%) and Coal India (down 0.92%).
The top two A Group gainers on the BSE were—Indiabulls Real Estate (up 8.38%) and Adani Enterprises (up 7.55%).
The top two A Group losers on the BSE were—Gujarat Gas (down 8.52%) and Hexaware Technologies (down 4.05%).
The top two B Group gainers on the BSE were—Landmark Property Development Company (up 19.92%) and BSEL Infrastructure Realty (up 19.87%).
The top two B Group losers on the BSE were—Aarya Global Shares & Securities (down 16.62%) and Piccadily Sugar & Allied Industries (down 10.68%).
Out of the 50 stocks listed on the Nifty, 31 stocks settled in the positive. The main gainers were BHEL (up 7.16%); DLF (up 6.03%); Jaiprakash Associates (up 3.71%); BPCL (up 3.45%) and ICICI Bank (up 3.11%). The key laggards were Cipla (down 4.47%); Lupin (down 3.20%); Ranbaxy Laboratories (down 1.20%); Hero MotoCorp (down 1.17%) and M&M (down 1.14%).
Markets in Asia closed mostly higher on better-than-expected economic news from the US on Wednesday. The news eased worries about the slowing global economic growth. Hopes of the European Central Bank and the Bank of England, which are set to hold policy meetings today, keeping interest rates unchanged also supported the gains.
The Hang Seng rose 0.09%; the Jakarta Composite gained 0.47%; the KLSE Composite climbed 0.71%; the Nikkei 225 surged 0.89% and the Straits Times settled 0.31% higher. On the other hand, the Seoul Composite declined 0.17% and the Taiwan Weighted lost 0.03%. The Chinese market was closed today for a local holiday.
At the time of writing, the key European indices that opened in the red were mostly positive and similarly the US stock futures were trading higher.
Back home, foreign institutional investors were net buyers of shares totalling Rs602.39 crore on Wednesday whereas domestic financial institutions were net sellers of stocks amounting to Rs668.15 crore.
Pharma major Sun Pharmaceutical Industries today said its board of directors has approved the proposal to raise up to Rs8,000 crore through domestic or international offerings, Sun Pharmaceuticals said in a filing to the BSE. The proposal would be put for shareholders’ approval during the annual general meeting scheduled on 8th November. The stock fell 0.15% to close at Rs696.65 on the NSE.
Godrej Properties has launched its new residential villa project, Godrej Gold County, at Tumkur Road, near Bangalore. The project, which is the fourth project of the company in Bangalore, is spread over about 12 acres and is being developed at an investment of Rs100 crore. The stock gained 0.68% to close at Rs596 on the NSE.
Industrial Finance Corporation of India (IFCI) today said its board has decided to proceed with the conversion of Government of India bonds worth Rs 923 crore into equity. With the conversion, the direct shareholding of the government will increase to 55.57%. IFCI, a term lender, is promoted by financial institutions and banks including LIC. The stock tanked 4.70% to close at Rs29.40 on the NSE.