Nifty ends Dec FO series at 8104, Sensex firm; metals, autos up
After a lot of volatility, the market ended December Futures and Options (F&O) series on a firm note. Market analysts feel strengthening rupee supported the upmove in absence of any major global triggers.Religare Securities says it was short covering on the expiry day which played the trick and helped Nifty reclaim 8100. The 50-share index closed up 68.75 points or 0.9 percent at 8103.60 while the Sensex was up 155.47 points or 0.6 percent at 26366.15. About 1651 shares have advanced, 929 shares declined, and 171 shares are unchanged.
Jyotivardhan Jaipuria, Founder & MD of Veda Investment Managers said that the pain from demonetisation will continue for three more months. “We are still 8-12 weeks away from normal. The first quarter of the next fiscal year will be volatile, he said, adding that lower prices now are a chance to buy big names in auto and cement. He believes a few of these companies have come off 15-30 percent.
Auto stocks rallied today despite concerns that demonetisation may hit December auto sales. According to Motilal Oswal, two-wheelers are likely to be worst hit on account of demonetisation.
Nomura sees December wholesales to be impacted by a sharp decline in retail sales due to demonetisation, and inventory de-stocking by original equipment manufacturers (OEMs) to clear off 2016 model year inventory.
Maruti, HDFC, Tata Motors, TCS and Bharti Airtel were top gainers in the Sensex. Banks, metals and oil & gas stocks lend support. Midcaps outperformed peers with Nalco, Piramal Enterprise, Page Industries, Adani Power and IDBI Bank as gainers.
IFCI ended with 14 percent gains while IDBI Bank was up 4 percent as NSE gears up for its IPO. According to the DRHP, existing NSE shareholders may offer 20-25 percent shares for estimated Rs 10000 crore which has got investors existed. Investors expect it to have a positive rub off on IFCI and IDBI Bank as both own around 3.1 percent and 1.5 percent stake in NSE respectively. Infosys, Adani Ports, Sun Pharma, L&T and BHEL were losers in the Sensex.
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