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Sensex, Nifty gains record break closing highs

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(G.N.S) Dt. 15

Mumbai

Broadly, there were five reasons why the market in India rallied. These include factors such as a global rally, economic factors, gain in financials, pre-Budget upmove as well as technical factors.

Driven by positive global and domestic cues, the Indian market witnessed a stellar trading session. Indices clocked fresh milestones and record highs in the opening tick, and they continued their gains through the day too. But some selling pressure in the last hour made sure that indices ended off the day’s high points.

On an intraday basis, the Sensex gained over 370 points, while the Nifty gained around 100 points.

The Sensex was up 251.12 points at 34843.51, while the Nifty was up 60.20 points at 10741.50. The market breadth was narrow as 1541 shares advanced, against a delcline of 1416 shares, while 300 shares were unchanged.

HDFC and ICICI Bank were the top gainers on both indices, while Hero MotoCorp, GAIL, Eicher Motors and Tata Motors DVR lost the most.

In the morning trade, the Sensex had gained over 350 points, while the Nifty had gained almost 100 points to trade comfortably above 10,750. In fact, the Nifty Bank too gained around a percent, adding to the momentum on the D-Street.

Broadly, there were five reasons why the market in India has rallied. These include factors such as a global rally, economic factors, gain in financials, pre-Budget upmove as well as technical factors.

In the broader markets, midcaps had a good run for the initial part of the session, but gave up all their gains in the final hour. The Nifty Midcap ended over 0.10 percent lower. In fact, all sectoral indices cooled off in the final hour, trading in the red, barring Bank Nifty. Nifty Auto too saw some correction on the back of a fall in Eicher Motors and Hero MotoCorp.

Led by gains in HDFC and ICICI Bank, the banking indices gained as well. HDFC, on the back of its fundraising plan, gained over 6.5 percent intraday, while ICICI Bank has surged around the same as well. Based on the rally in ICICI Bank, and a spillover to HDFC Bank from HDFC, the Nifty Bank hit a fresh record high and clocked 26,000 for the first time ever.

Gold rose by Rs 200 to trade at almost three-month high of Rs 30,950 per 10 gram at the bullion market, helped by a firm global trend and pick-up in wedding season buying by local jewellers and retailers.

Silver also rallied by Rs 300 to trade above the Rs 40,000 per kg level on increased offtake by industrial units and coin makers.

Bullion traders said the sentiment got a boost owing to a firming trend overseas where gold rose to the highest since September, as the dollar slumped to three-year lows against a basket of currencies, raising appeal of the precious metals as a safe haven.

On a stock-specific basis, Capital First rose nearly 8 percent in early trade on Monday to hit a fresh 52-week high of Rs 902 after IDFC Bank announced its merger with the non-banking financial company (NBFC) over the weekend. The share swap ratio has been fixed at 139:10, which means 139 shares of IDFC Bank will be allotted for every 10 equity shares of Capital First. It ended around 1 percent higher.

Meanwhile, shares of HDFC gained around 7 percent Monday as investors cheered the NBFC’s fundraising plan. Over the weekend, it announced that the Board had approved fund raising worth Rs 11,301 crore by issuing 6.43 crore shares at Rs 1,726.05 per share to investors, including global private equity biggie GIC Singapore, KKR and Premji Invest. The stock ended 6 percent higher.

State-owned Bank of India (BoI) fell over half a percent intraday as it deferred the Rs 3,000-crore capital raising plan through private placement of equity shares after the government’s move to infuse Rs 2,257 crore capital into it, a top official said. The stock ended 0.3 percent lower.

ICICI Prudential Life Insurance Company rose nearly 3 percent Monday as brokerage house Geojit initiated buy call with price target of Rs 450.

Life Insurance Corporation has sold a little over 2 per cent stake in drug and chemical firm Merck through an open market transaction. The stock has ended around 16 percent higher. The stock ended 3 percent higher.

Meanwhile, among global markets, most major indexes in Asia closed higher on Monday after Wall Street closed out last week at records and the dollar continued to struggle.

European stocks hovered around the flat line Monday morning as investors digested new earnings releases.

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