Sensex, Nifty, Midcap extend gains; metals, telecom stocks shine
12:40 pm Buzzing:Marksans Pharma shares rallied 20 percent after completion of UK MHRA inspection of Goa plant.
“Plant located at L-82 & L-83, Verna Industrial Estate, Verna, Goa has had an inspection by UK MHRA from February 14 to 17, 2017,” the company says.
The plant inspection has been completed without any critical observations, it says.
The company is awaiting further instruction from the agency in this regard.
12:20 pm Market Expert: Vinod Nair of Geojit Financial Services says currently, market is under lack of fresh triggers which can impact the performance in the near-term.
Most of the upside factors like weakness in dollar, reduction in lending rate, increase in international metal prices, good budget and good set of numbers in Q3 results has played its role during the last 2 months.
Given the decent rally during year-to-date, he says market is looking fairly priced at 17.3x one year forward P/E.
Additionally, increasing talks regarding hike in US interest rate, risk like increase in Oil & Metal prices may impact market sentiments. Though inflows are currently positive; rising yield, high valuation, volatility during state elections and favour in developed economies than to domestic market can impact performance in the short-term, Nair says.
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12:00 pm Market Check
Equity benchmarks as well as broader markets extended gains in noon, aided by telecom, metals, select auto and healthcare stocks. Asian cues also continued to support the market.
The 30-share BSE Sensex was up 78.23 points at 28546.98 and the 50-share NSE Nifty gained 23.45 points at 8845.15. The Nifty Midcap and Smallcap indices climbed nearly a percent on positive breadth.
Laurence Balanco of CLSA says as suspected, the Nifty is hesitating below resistance provided by the March 2015 and September 2016 highs at the 8,989-9,191 area following the initial breakout form the November-December 2016 double-bottom pattern.
Nevertheless, as long as price action remains above the rising 50-DMA, currently at 8,396 the benefit of doubt should be given to the newly formed uptrend and the ultimate break above 8,989-9,191 resistance, he says, adding above the all-time highs the next upside target is at 10,350-10,370.
Metals stocks gained momentum today. Tata Steel, Jindal Steel, Bhushan Steel, NMDC, SAIL, Vedanta and JSW Steel climbed 2-8 percent.
Telecom stocks rallied after media reports indicated that Vodafone-Idea merger may be announced by end of current month. Idea Cellular, Reliance Communications, Bharti Airtel and Tata Teleservices were up 2-8 percent.
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