Home Business Market closes on record high; Sensex 200 points away from 36K mark

Market closes on record high; Sensex 200 points away from 36K mark


(G.N.S) Dt. 22


The party continued at Dalal Street as bulls showed that they are not ready to give up as benchmark indices scaled to fresh record closing high on Monday. TCS and Reliance Industries were the top gainers.

All sectoral indices barring Nifty Metal and PSU Bank ended in the green. The IT index led the charge with more than 2 percent gains.

The market  started at record high and immediately turned volatile in morning but gained solid strength in the last hour of trade despite tepid global cues post US government shutdown. The rally is largely on the back of better-than-expected earnings so far and ahead of Union Budget that will be presented on February 1.

The 30-share BSE Sensex rallied 286.43 points or 0.81 percent to 35,798.01, which is 200 points away from 36,000-mark.

The 50-share NSE Nifty jumped 71.50 points to 10,966.20, which is 34 points away from the 11,000 level that technical as well as fundamental analysts have been waiting for.

“This last leg of the rally is all inclusive with most sectors joining in the rally and we expect it to be more populist than the previous ones,” Nikhil Kamath, Co-Founder and Head of Trading, Zerodha said.

The rally at this point looks to have further momentum on the back of domestic liquidity and earnings doing better than expected, according to him.

“We continue to remain cautious ahead of the budget and would not recommend fresh positions at this juncture,” he said.

Not only benchmark indices buy also the Nifty Bank index continued its record-hitting spree, closing above 27,000 level for the first time. It was up 132 points at 27,041.20 at close.

The broader markets, which were underperforming benchmark indices in morning, also participated in the last hour of trade. The Nifty Midcap index was up 0.93 percent and BSE Smallcap gained 0.8 percent though the market breadth was not strong.

About 1,592 shares advanced against 1,328 declining shares on the BSE.

Axis Bank post its better-than-expected earnings rallied 3.6 percent and helped the Nifty Bank close higher. Yes Bank continued its rally, up 1.7 percent and HDFC Bank gained half a percent.

However, other major banks like SBI, ICICI Bank, Bank of Baroda and PNB fell 0.2-0.9 percent after a Assocham-Crisil study said the gross non-performing assets would increase to “Rs 9.5 lakh crore as on March 31, 2018 (from 8 lakh crore at March 2017) i.e. about 10.5 percent of total advances, while stressed assets are expected to be at Rs 11.5 lakh crore”.

Reliance Industries was the leading contributor to Nifty50’s gains, rising 4.3 percent after Jio reported its first time ever profit at Rs 504 crore in Q3 and petrochemical business was strong.

ONGC rallied 3.6 percent and HPCL fell 3.5 percent. ONGC will buy HPCL at Rs 473.97 per share, which was lower than Street estimates. The acquisition, pegged at Rs 36,915 crore, is expected to be complete by January-end.

Wipro lost more than 2 percent after third quarter earnings missed analyst expectations.

BHEL was the biggest gainer on the Sensex, rising 7 percent. L&T, Indiabulls Housing, Tata Motors, Kotak Mahindra Bank, Tech Mahindra and Bajaj Auto among others gained 1-3 percent whereas HDFC, Vedanta, Eicher Motors, GAIL and BPCL slipped 1-2 percent.

Jubilant Foodworks was up 9 percent as brokerage houses raised target price following strong Q3 earnings. Gruh Finance lost 14 percent on top of 15 percent loss in previous session despite good earnings.

M&M Financial, Edelweiss Financial, DHFL, L&T Finance, Just Dial, United Breweries, United Spirits, Radico Khaitan, Parag Milk Foods, HOEC, Vakrangee and Godrej Properties rallied 2-9 percent.

On debut, Apollo Micro Systems ended the day with 65 percent gains at Rs 454.10 against issue price of Rs 275 on the BSE.

Global markets were mixed as investors monitored a US government shutdown and political developments in Germany.

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