Market at record closing high; Nifty above 10,200, Sensex gains 201 pts; Airtel up 5%
It was a good start to the Diwali week on Monday as the market rallied sharply for third consecutive session and ended at fresh record closing high amid volatility. Positive global cues, stable earnings (so far) and better macro data helped the bulls return to Dalal Street.
After early rally, the market saw some profit booking due to selling pressure in Reliance Industries and select banks, but managed to gain strength again in last couple of hours of trade, following recovery in same stocks.
The 30-share BSE Sensex rose 200.95 points to 32,633.64, backed by auto, metals, pharma, FMCG and select technology stocks.
The 50-share NSE Nifty closed above 10,200 level for first time, up 63.40 points at 10,230.90.
“We reiterate positive view on Nifty and expect 10,400 to be tested shortly. Any intermediate pause or decline should be considered as buying opportunity,” Jayant Manglik, President, Retail Distribution, Religare Securities said.
ICICIdirect also believes the Nifty will remain positive till it holds above 10,050 in the October series, for a target of 10,500. Banking may take lead once again, it feels.
The broader markets underperformed benchmarks as the Nifty Midcap and Smallcap indices gained 0.3 percent each.
Most Asian markets closed higher, following the positive lead from Wall Street, as investors digested the release of China inflation data. European markets were also trading higher with moderate gains at the time of writing this article.
Meanwhile, WPI inflation eased to 2.6 percent in September, from 3.24 percent in previous month.
Nifty Auto, Metal, pharma and Realty indices gained 1-2 percent while Nifty Bank ended flat and PSU Bank was down 0.2 percent.
Reliance Industries rallied 1.7 percent in opening and hit a record high of Rs 891.70 post Q2 earnings, but failed to hold on to those gains due to profit booking. It closed with 0.17 percent loss.
Telecom stocks continued to rally today. Bharti Airtel surged 5 percent, continuing uptrend since its deal with Tata Sons for consumer telecom business. On Friday, the stock was up 8 percent. Today sources told CNBC-TV18 that Tata and Bharti Airtel are in talks for consolidation of their DTH business.
Bharti Infratel gained 3.8 percent and Idea Cellular rallied 5 percent.
Axis Bank was down 1.65 percent ahead of Q2 earnings on Tuesday. A CNBC-TV18 poll expects profit to increase 307 percent year-on-year to Rs 1,298.7 crore due to low base in year-ago quarter.
Bharat Financial was up 1.6 percent after announcement of merger with IndusInd Bank (down 1.7 percent).
Vedanta, Tata Motors, HUL, M&M, ICICI Bank, TCS, Bajaj Auto (ahead of earnings on Tuesday), ONGC, BPCL, Sun Pharma and Eicher Motors gained 1-4 percent.
After earnings, JM Financial and Federal Bank rose 6-9 percent while Bajaj Finance lost 3.4 percent.
Tata Communications, Radico Khaitain, Suven Life, Oberoi Realty, AU Small Finance and M&M Financial, among others, were up 3-16 percent while SPARC, Texmaco Rail and GNA Axles were down 3-6 percent.
Godrej Agrovet closed at Rs 595.55 on listing day, up 29.5 percent over issue price of Rs 460 per share.
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