Nifty has to close below 5,670 for the uptrend to break and a possible sideways move to start
The market closed with gains of around 1% on the government continuing with its reforms push and support from the global markets. Today the Nifty closed at its highest since 8 July 2011 on the overall positive cues. The benchmark again managed to make higher high and higher low and wiped off the losses incurred in the past two trading days. We may now see the Nifty may moving sideways if it closes below 5,670. The National Stock Exchange (NSE) saw a lower volume of 81.15 crore shares and an advance decline ratio of 1064:694.
The domestic market opened on a firm footing on supportive global cues and reports of the rupee trading at a near five-month high against the dollar in early trade. Also reports of the Indian government asserting that it will not resort to any additional borrowing through bonds and will stick to its borrowing plan in the second half of the fiscal supported the upmove.
The Nifty opened 35 points higher at 5,685 and the Sensex resumed trade at 18,705, a gain of 125 points over its previous close. The market touched its intraday low in initial trade itself but across-the-board buying activity soon pushed it to a higher trajectory. At the lows the Nifty stood at 5,683 and the Sensex moved lower to 18,699.
Gains in metals, power and auto sectors pushed the benchmarks to their highs at around 10.30am. At their highs, the Nifty rose to 5,735 and the Sensex climbed to 18,870.
Having already completed about 65% of its market borrowing programme for 2012-13, the government on Thursday said it will raise only Rs2 lakh crore in the second half of the fiscal to ensure adequate availability of cash for the private sector. According to the Budget estimate, the gross market borrowing is planned Rs5.69 lakh crore for 2012-13.
Meanwhile, in line with the strong equity market, the rupee shot up to five-month high of 52.55 a dollar on Friday morning due to fresh selling of the American currency by banks and exporters.
The rupee, which resumed higher at 52.73 per dollar from 53.02 on Thursday, firmed up further to a five-month high of 52.55 per dollar, before quoting at 52.68 at 11.00am. The rupee last traded at 52.55 on May 2, 2012.
However, the market pared some of its gains and was trading sideways in subsequent trade. A mixed opening of the key European markets kept the local indices steady in noon trade.
A minor bout of profit taking saw the market paring some more gains, but snapping its two-day decline to close higher. The Nifty closed 54 points (0.95%) higher at 5,703 and the Sensex finished the session at 18,763, a gain of 183 points (0.99%) over its previous close.
In the broader markets space, the BSE Mid-cap index gained 1.14% and the BSE Small-cap index rose 0.85%.
Except for BSE Realty which fell 0.37% all other sectoral indices ended up in the green. The main sectoral gainers were BSE Auto (up 1.89%); BSE Consumer Durables (up 1.63%); BSE Fast Moving Consumer Goods (up 1.42%); BSE Metal (up 1.38%) and BSE Power (up 1.37%).
25 of the 30 stocks on the Sensex closed in the positive. The key gainers were Hindalco Industries (up 3.39%); Tata Motors (up 2.96%); Cipla (up 2.50%); Sun Pharma (2.44%) and Tata Power (up 2.30%). The main losers were Infosys (down 0.58%); BHEL (down 0.56%); SBI (down 0.39%); GAIL (down 0.22%) and HDFC Bank (down 0.14%).
The top two A Group gainers on the BSE were—Tata Global (up 8.30%) and Indian Hotels (up 6.32%).
The top two A Group losers on the BSE were—United Breweries (down 7.59%) and United Spirits (down 4.61%).
The top two B Group gainers on the BSE were—Assam Company (up 20%); Agre Developers (up 19.83%).
The top two B Group losers on the BSE were—Minaxi Textiles (down 13.75%) and Sacheta Metals (down 12.79%).
Out of the 50 stocks listed on the Nifty, 39 stocks settled in the positive. The top gainers were Hindalco Industries (up 3.69%); Power Grid (up 2.96%); Sun Pharma (2.96%); Tata Motors (up 2.79%) and Jaiprakash Associate (up 2.42%). The key losers were Reliance Infrastructure (down 1.50%); IDFC (down 1.38%); DLF (down 1.35%); HCL Technologies (down 1.28%) and BHEL (down 0.60%).
The Asian pack, with the exception of the Japanese benchmark, settled higher on hopes that Spain would be able to rein its debt imbalances following the unveiling of fresh budget to reduce in spending. The Spanish Cabinet on Thursday approved a new tax on lottery winnings and a cut in ministries’ spending as part of a 13 billion-euro ($16.8 billion) central government package to reduce the euro area’s third-biggest budget deficit.
The Shanghai Composite advanced 1.45%; the Hang Seng gained 0.38%; the Jakarta Composite climbed 0.89%; the KLSE Composite rose 0.54%; the Straits Times added 0.03%; the Seoul Composite was up 0.38% and the Taiwan Weighted settled 0.41% higher. Bucking the trend, the Nikkei 225 declined 0.89%.
At the time of writing, the key European markets were mixed with a negative bias and the US stock futures were trading in the negative.
Back home, foreign institutional investors were net buyers of shares aggregating Rs399.75 crore on Thursday whereas domestic institutional investors were net sellers of equities amounting to Rs447.87 crore.
Aiming to regain its lost position in the two wheeler industry, TVS Motor Company today launched its second 125cc motorcycle—TVS Phoenix. The first 125cc motorcycle from the Hosur-based manufacturer was TVS Flame that was introduced few years back. The stock advanced 1.19% to close at Rs42.50 on the NSE.
India’s largest private sector oil retailer Essar Oil and Gujarat State Petroleum Corporation on Friday announced a partnership to expand CNG presence in the Gujarat to offer more fuel choice to customers. The two companies also announced commissioning of a compressed natural gas (CNG) facility at Essar Oil’s retail outlet at Botad in the state. This is Essar’s 20th CNG outlet in Gujarat. Essar Oil fell 0.10% to settle at Rs50.50 on the NSE.
Dalmia Cement Bharat, a subsidiary of Dalmia Bharat Enterprises, has acquired Meghalaya-based Adhunik Cement for Rs560 crore. Adhunik Cement has a robust presence in the North-East markets with a near 10% market share and a capacity of 1.5 million tonnes per annum (MTPA). Dalmia Bharat closed trade at Rs168.20 on the NSE, a jump of 12.02%.