Sensex, Nifty, Midcap at fresh record closing high; banking financials lead
Fri Jan 05 2018
Rajesh Sharma (1998 articles)

Sensex, Nifty, Midcap at fresh record closing high; banking financials lead

The market extended gains for second consecutive session on Friday as benchmark indices and broader markets ended at fresh record closing high. The rally was driven by positive global cues and also hopes that the government may be meeting its fiscal deficit target of 3.2 percent of GDP.

The report by rating agency Fitch stating that India will be fastest growing economy over the next five years also boosted sentiment. Banking & financials, telecom and auto stocks pushed the market higher.

“Banking is playing key role in the recent up move and should hold this bias ahead as well,” Jayant Manglik, President, Religare Broking said.

The 30-share BSE Sensex rallied 184.21 points to 34,153.85 and the 50-share NSE Nifty gained 54.10 points at 10,558.90. Both equity benchmarks ended the week with around 0.9 percent gains.

Experts feel the stock specific action is likely to be seen as December quarter earnings season will begin next week with Infosys and ahead of Union Budget.

The broader markets continued to outperform frontline indices as the Nifty Midcap gained nearly a percent to end at fresh record closing high. About three shares advanced for every two shares falling on the BSE.

All the sectoral indices barring PSU Bank participated in the rally. Nifty Bank, Auto, FMCG, IT, Metal and Pharma indices gained 0.4-0.8 percent whereas PSU Bank lost 0.7 percent on profit booking.

Meanwhile, CNBC-TV18 reports quoting Cogencis said that the Reserve Bank of India has given a green signal for extra dividend payment to government. The Centre had sought Rs 13,000 crore additional dividend from RBI.

The Budget session of Parliament will commence from January 29 and the Union Budget will be presented on February 1. The Economic Survey will be tabled on January 29. The first phase of the session will be from January 29 to February 9. After a recess, Parliament will meet again from March 5 to April 6.

Yes Bank was the biggest gainer among Nifty 50 stocks, rising 5 percent followed by Bajaj Finance, Adani Ports, IndusInd Bank and Bharti Airtel that gained more than 3 percent.

HDFC, TCS, Eicher Motors, Tata Steel and Indiabulls Housing Finance among others rallied more than 1 percent whereas Bharti Infratel and Hindalco lost over a percent.

Liquor stocks gained momentum today after GM Breweries’ stellar Q3 earnings. The stock was locked at 20 percent upper circuit while United Spirits, Radico Khaitan, Globus Spirits and Pincon Spirit gained 4-10 percent.

IFCI was up 4.8 percent after reports that the company invited bids to sell 4 percent stake in Clearing Corporation of India by January 19. Reliance Communications gained 2 percent as China Development Bank has wthdrawn its insolvency plea against the company.

Bharat Forge rose 1.5 percent on strong North America Class 8 truck orders. Indian Overseas Bank rallied 4.5 percent as the bank will utilise its balance available in the share premium account amounting to Rs 7,650.06 crore to write off the accumulated losses.

Idea Cellular added 11 percent after CLSA upgraded the stock to buy from sell with a target of Rs 130 per share as Idea-Vodafone could see deleveraging of USD 5 billion in the run up to their merger.

IDFC Bank, IDFC, RBL Bank, Apollo Tyres, Kwality, Indian Hotels and Titan Company rallied 2-6 percent.

On the global front, Asian markets closed higher, tracking positive lead from the Dow Jones that closed above 25,000-mark for first time. Japan’s Nikkei 225 Average hit a 26-year high, rising 0.9 percent.

European markets were also trading higher. France CAC, Germany DAX and Britain’s FTSE gained 0.4-1.2 percent at the time of writing this article.

Rajesh Sharma

Rajesh Sharma

Rajesh Sharma is Correspondent for Stock Market of South East Asia based in Mumbai. He has been covering Asian markets for more than 5 years.