A close about 8,450 may lead to a further rally in Nifty
We had mentioned in Wednesday’s closing report that two benchmarks, NSE’s CNX Nifty and S&P BSE Sensex are to rise but the rally may be short-lived and that Nifty may meet with a resistance between 8,400 and 8,440. On Thursday, major indices in the Indian stock markets were range bound and recorded marginal gains. Nifty declined after hitting a high of 8,459 today.
India Vix closed at 15.33, down 3.48%. NSE turnover was at 121.26 crore.
Clarity regarding P-Notes, the Indian government's push for reforms and the expiry of July derivative contracts, coupled with the US Fed's decision to keep interest rates intact, improved investor sentiments on Thursday.
The global and domestic developments helped the 30-scrip Sensex to close the day's trade up 142 points or 0.51%. The wider 50-scrip Nifty also made gains during the day's trade. It closed higher by 46.75 points or 0.56% at 8,421.80 points.
Sensex, which opened at 27,685.82 points, closed at 27,705.35 points -- up 141.92 points or 0.51% from the previous day's close at 27,563.43 points. It touched a high of 27,854.46 points and a low of 27,649.97 points in the intra-day trade.
According to market analysts, the Federal Reserve's statement that cited improvements in the US labour and housing markets reduced the chances of an interest rate hike for the year.
If interest rates in the US are hiked, the FPIs (Foreign Portfolio Investors) are expected to be led away from emerging markets such as India.
Analysts pointed out that the news of the cabinet approving the GST (goods and services) bill that incorporates recommendations from a parliamentary panel also acted as a strong positive trigger.
The SIT appointed by the Supreme Court on black money had recommended that the participatory note, or P-Note, route of overseas funds investing in Indian stocks be stringently regulated.
The rollover figure at the end of July's derivatives expiry stood at a modest 61.7%, one of the lowest in recent months.
Sector wise, healthy buying was observed in fast moving consumer goods (FMCG), healthcare, banks, automobile, and realty stocks.
However, information technology (IT), capital goods and technology, entertainment and media (TECK) sectors came under intense selling pressure.
The S&P BSE FMCG index zoomed by 212.76 points, the healthcare index was up by 127.22 points, banks index rose by 122.22 points, automobile index was higher by 50.41 points and the realty index was up by 45.34 points.
However, IT index fell by 84.57 points, capital goods index declined by 43.46 points and TECK index decreased by 33.57 points.
Major Sensex gainers during Thursday's trade were: Dr.Reddy's Lab, up 5.23% at Rs.3,907.55; Cipla, up 4.79% at Rs.710.10; ITC, up 3.90% at Rs.315.80; Hindustan Unilever, up 2.32% at Rs.920.45; and HDFC, up 1.96% at Rs.1,337.40.
The major Sensex losers were: Sun Pharma, down 1.89% at Rs.814.30; Hindalco Inds, down 1.60% at Rs.104.70, Infosys, down 1.48% at Rs.1,069.10; Tata Consultancy Services (TCS), down 1.08% at Rs.2,480.95; and Tata Steel, down 0.92% at Rs.248.35.
The top gainers and losers in the major indices are given in the table below:
Among the Asian markets, Japan's Nikkei was up 1.08%. However, China's Shanghai Composite Index lost 2.20% and Hong Kong's Hang Seng fell by 0.49%.
In Europe, the London FTSE 100 index was higher by 0.75%, the French CAC 40 was up by 0.45% and Germany's DAX Index was flat.
The closing values of the major indices in the Asian stock markets are given in the table below: