Bargain hunting lifts Sensex 346 pts after 3-day loss; RIL, Infosys, PSU Banks lead
The market staged smart come back on Thursday after three-day of losses, rallying one percent driven by banks, technology, energy and FMCG stocks. Bargain hunting in bluechips, easing crude oil prices and positive global cues pushed benchmark indices higher.
The 30-share BSE Sensex closed above 33,000-mark, rising 346.38 points or 1.06 percent to 33,106.82 while the 50-share NSE Nifty gained 96.80 points or 0.96 percent at 10,214.80.
After hitting a record high last week, the market turned volatile and that volatility is expected to continue in short term, experts feel.
“The market will see some volatility ahead of Gujarat elections, though it is still in bull run. Stock specific approach will continue,” Prakash Diwan of Altamount Capital said in an interview to CNBC-TV18.
Nikhil Kamath, Co-Founder and Head of Trading, Zerodha believes that there is further room for volatility at the current juncture. “We continue to maintain a short outlook on the market.”
After the end of the domestic earnings season, investors will now turn their focus on to US tax reform bill and other major global cues, Anand James, Chief Market Strategist, Geojit Financial Services feels.
On the global front, Asian markets ended higher despite softer lead from Wall Street, with the Japan’s Nikkei rising 1.5 percent. European stocks were mildly higher as investors monitored earnings and key data releases. Germany’s DAX and France’s CAC were up 0.6 percent at the time of writing this article.
Back home, the broader markets also participated in the rally as the Nifty Midcap gained a percent after falling for previous four consecutive sessions. About two shares advanced for every share falling on the BSE.
All the sectoral indices on the National Stock Exchange ended in the green with the PSU Bank topping the list, up 3.2 percent followed by IT (up 1.75 percent). FMCG, Metal and Realty indices gained 1 percent each.
Morgan Stanley remains optimistic on India as the macros are on a solid footing and the economic growth is turning around.
“One-time effect of demonetisation and the GST implementation are largely behind us. And the growth is likely to surprise on the upside over next one year,” Ridham Desai of Morgan Stanley said in an interview to CNBC-TV18.
Infosys was leading contributor to Sensex’ gains, rising nearly 4 percent, may be on hope of good earnings growth from 2018 onwards.
Rapid pace of recapitalisation process has kept the PSU bank stocks buoyant. Bank of India, Union Bank, Indian Bank, Allahabad Bank, OBC, PNB, Bank of Baroda, Canara Bank and Syndicate Bank rallied 4-6 percent while SBI gained 2.6 percent.
Reliance Industries, Bajaj Finance, ICICI Bank, TCS, Vedanta, Tata Motors and Aurobindo Pharma among others rose 1-3 percent while Bharti Infratel rebounded sharply, rising nearly 2 percent after losing 8 percent in previous two sessions. Adani Ports, BPCL and Coal India were major losers, falling 1-2 percent.
Realty stocks gained strength after the Cabinet has approved hiking carpet area cap for housing interest subvention. Prestige Estates, DLF, Brigade Enterprises, Kolte-Patil, Peninsula Land and Puravankara gained 2-4 percnet. HDIL was up 4.5 percent as it made part debt repayment to Andhra Bank.
Anil Dhirubhai Ambani Group stocks rebounded sharply today. Reliance Communications was up 19 percent while Reliance Infrastructure, Reliance Capital, Reliance Home Finance, Reliance Nippon Life and Reliance Power rallied 1-9 percent.
