Nifty has to stay above 7,900 for the market to continue to head higher. Bank Nifty is already weak
We had mentioned in Wednesday’s closing report that Nifty, Sensex may put in more gains for which Nifty has to stay above 7,880. The market indices in the Indian stock markets were range-bound during the day and closed with marginal gains. Bank Nifty however, closed with a marginal loss. The market indices were subdued after key economic data showed a slowdown in manufacturing activity for the last month.
The markets made healthy gains within minutes of opening and continued their upward trajectory on the back of Tuesday's monetary easing by the Reserve Bank of India (RBI), overnight rally in the US markets, supportive Asian markets and strengthening rupee value. However, the upward momentum lost its steam as the latest Nikkei India Manufacturing PMI (Purchasing Manufacturers Index) for the last month showed a contraction. The PMI was at a seven-month low of 51.2 in September 2015.
Markets analysts said the less-than-expected PMI data impacted sentiments and erased the gains made during the day's trade, as profit booking was also witnessed.
The rupee continued to gain strength on Thursday. It gained 7 paise and closed at 65.51 against a US dollar around 5.00 p.m. from its previous close of 65.58 against a greenback. It touched a day's low of 65.48 against the US dollar.
The Indian rupee had gained 38 paise on Wednesday to close at a five-week high of 65.58 against the US dollar.
The positive Asian markets have supported sentiments here. Japan's Nikkei index was higher by 1.92%. The Chinese markets -- Hong Kong's Hang Seng index and Shanghai Composite Index -- will remain closed till 7 October 2015 (Wednesday), on account of the Chinese national day.
Sector-wise, healthcare, capital goods and consumer durables witnessed healthy buying support. On the other hand, automobile, banking and information technology (IT) index came under heavy selling pressure.
The S&P BSE healthcare index zoomed by 260.11 points, capital goods index increased by 110.89 points and consumer durables index was higher by 96.29 points.
However, the S&P BSE automobile index receded by 78.81 points, banking index declined by 73.37 points and IT index was lower by 27.25 points.
HCL Technologies announced on Wednesday after market close that its first quarter earnings may be hit on account of client-specific issue, cross currency impact and longer transition deadlines for some of its complex projects in infrastructure management services. In a sharp market reaction the company’s share price fell by more than 12.5% in Thursday’s trading.
Major Sensex gainers during Thursday's trade were: Lupin, up 3.62% at Rs.2,107.05; Sun Pharma, up 2.57% at Rs.890.75; Tata Consultancy Services (TCS), up 2.01% at Rs.2,639.70; Dr.Reddy's Lab, up 1.80% at Rs.4,230.05; and Larsen and Toubro (L&T), up 1.54% at Rs.1,489.30.
The major Sensex losers were: BHEL, down 2.85% at Rs.199.70; Gail, down 2.60% at Rs.294.25; Maruti Suzuki, down 2.33% at Rs.4,579.85; Vedanta, down 1.82% at Rs.83.55; and HDFC, down 1.15% at Rs.1,199.25.
The Indian markets will remain closed on Friday on account of Gandhi Jayanti.
The top gainers and top losers of the major indices in the stock market are given in the table below:
The closing values of the major Asian indices are given in the table below:
Among European indices, DAX was at 9,672.13, up 0.12% and the FTSE 100 was at 6,143.23, up 1.35%.