Nifty gains for 4th consecutive day, Sensex up 118 pts; RIL supports, pharma shines
The market extended gains for fourth consecutive session but ended off day’s high on Tuesday. The upside was supported by positive global cues but rising crude oil prices and profit booking in select stocks capped gains in late trade.
Reliance Industries, HDFC, HDFC Bank, Infosys and pharma stocks helped the Nifty end above 10,300 level.
The 30-share BSE Sensex was up 118.45 points at 33,478.35 and the 50-share NSE Nifty gained 28.10 points at 10,326.90.
Overall the market has been rangebound and the same is expected to continue till next triggers which would be RBI policy and Gujarat assembly elections next month, experts feel.
“Markets at current levels are already pricing in a BJP victory to some extent and are likely to trade sideways till the final outcome is out,” JK Jain, head of equity research at Karvy Stock Broking told Moneycontrol.
“Gujarat outcome will be taken as a sample of Modi’s popularity at the all-India level and may impact short-term market sentiments, as political stability and the present government’s thrust on the economic reforms are the basis for anticipation of long-term bull-run in the markets,” he said.
Pharma sector was the star performer today as Nifty Pharma index gained 2.2 percent after Dr Reddy’s Labs has received an establishment inspection report from the US FDA for its formulation manufacturing facility at Duvvada in Visakhapatnam but the health regulator has not closed the inspection.
Dr Reddy’s Labs shares rallied 5 percent and the upside spilled over to other healthcare stocks. Sun Pharma was up 4 percent while Lupin and Cipla gained 1-2 percent.
Tech Mahindra was up 3.6 percent as company expects to outgrow Nasscom’s industry growth projection and may touch USD 5 billion mark in revenues during the current fiscal.
Reliance Industries gained 1.3 percent after Goldman Sachs raised target price of the stock to Rs 1,205, implying potential upside of 25 percent. The company today raised USD 800 million by selling 10-year bonds – the first offering since Moody’s raised India’s sovereign rating.
Bharti Airtel advanced 2 percent as the country’s largest telecom operator has added 31 lakh mobile users in October, higher by 210 percent compared with 10 lakh users addition in previous month, reports CNBC-TV18 quoting Cogencis.
PSU Bank index was down nearly 1 percent. ITC, TCS, Kotak Mahindra Bank, Indiabulls Housing and Ambuja Cements fell over a percent.
The broader markets mildly underperformed benchmarks, with the Nifty Midcap rising 0.16 percent on positive breadth. About 848 shares advanced against 681 declining shares on the BSE.
Business services provider Quess Corp was up 5 percent on acquisition of 51 percent equity stake in Tata Business Support Services from Tata Sons and Tata Capital.
Gati, Transport Corporation, Snowman Logistics and Patel Intergrated were down 1-6 percent on profit booking. These stocks had rallied sharply before logistics sector received infrastructure status.
BCL Industries gained 5 percent as EQ India Fund bought 4.5 lakh shares, Porinju Veliyath bought 2 lakh shares and Om Prakash Chugh 75,000 shares of the company at Rs 109.90 per share through block deals yesterday.
ARSS Infra was up 10 percent on winning order worth Rs 87 crore while Simplex Infra rallied 7 percent on bagging order worth Rs 542 crore from NBCC.
SKM Egg rose 8 percent. Egg prices were higher by 40 percent in last one month while broiler chicken prices fell by 25 percent.
Jet Airways fell 8 percent post analyst meet. L&T Finance Holdings was down 5 percent as Bain Capital may have sold over 2 percent stake in company via block deals in opening.
On the global front, Asian markets ended higher, following gains in US equities overnight amid strong economic data. European stocks recovered to trade half a percent higher at the time of writing this article.
