Sensex closes higher, Nifty fails to hold 8400; Hindalco up 6%
Benchmark indices closed higher amid consolidation on the first day of expiry week as investors await Union Budget that is scheduled to be announced on February 1. The markets opened moderately lower today after US President Donald Trump’s inauguration speech but recovered immediately to trade higher for major part of the session.The 30-share BSE Sensex was up 82.84 points to close at 27117.34. The 50-share NSE Nifty gained 42.15 points at 8391.50 after hitting an intraday high of 8404.15 and 8327.20. HDFC Group, FMCG, metals, PSU oil and technology stocks gained while infra and select private banks were under pressure.
The broader markets also traded in line with benchmarks. About 1610 shares advanced against 1137 declining shares on the BSE.
It’s an eventful week with the expiry as well as the Budget ahead, hence the markets do not expect relief from the volatility front, Jayant Manglik of Religare Securities says.
He suggests traders to continue with buy on dips approach while maintaining a balanced portfolio, considering strong support at 8250 in Nifty.
Metals stocks hogged limelight on hopes of rising global demand. The Nifty Metal index gained nearly 3 percent as Hindalco Industries was up 6 percent and Tata Steel rose 1.55 percent.
Lupin gained 1.2 percent as the pharma major has received final approval for its Paroxetin extended release tablets that are used for the treatment of major depressive disorder, panic disorder, social anxiety disorder and premenstrual dysphoric disorder.
Hindustan Unilever was up 0.25 percent. After market hours, the company said profit in Q3 increased 7 percent year-on-year on one-time gain. However, its margin and volume growth (at -4 percent) disappointed analysts.
HDFC, ITC, HDFC Bank, Tata Motors and SBI were top contributors to Sensex’s gains, up over 1 percent while ICICI Bank, L&T, Reliance Industries, Axis Bank and Sun Pharma were down 1-2 percent.
In broader space, United Spirits and Sumeet Industries surged 5-6 percent after strong set of earnings. JSW Energy was down 3 percent after its profit fell 93 percent in Q3 YoY.
Markets in Europe were lower today after US President Donald Trump took office and promised to pursue a protectionist policy. France’s CAC, Germany’s DAX and Britain’s FTSE were up around 0.4 percent at the time of writing this article. Asia ended mixed.
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