Monday 24 October 2016

Auto Scrips Fuel Sensex, Nifty to New Peaks, Mkts Up for 6th Day

File-AP Photo/Rajanish Kakade

Markets surged for the sixth session in a row today with benchmark Sensex rising 30 points to a new closing peak of 26,420.67 and the Nifty gaining 23 points to end at a record 7,897.50 on account of continued overseas fund inflows, lower oil prices and positive global cues.

However, gains were capped by fag end profit-selling at record levels as the BSE Sensex shot up to a life high of 26,530.84 and the NSE Nifty zoomed up to its all-time intra-day high of 7,918.55. Still, this is the second successive day that both indices hit new peaks. Yesterday, they had gained over one per cent each.

Auto stocks were in limelight as M&M, Tata Motors, Bajaj Auto and Maruti Suzuki were among the top gainers in the 19 counters that rose in 30-scrip Sensex. BHEL, NTPC, Coal India, Dr Reddys, Sesa Sterlite and Axis Bank also rose.

Brent oil price hovered near 14-month lows. Investors feel this will give respite to Prime Minister Narendra Modi's government to tackle both current account and fiscal deficits and will also lower the subsidy bill, traders said.

Sustained buying by foreign funds as well as renewed purchases by Domestic institutions also aided the uptrend. Foreign Portfolio Investors (FPIs) bought shares worth Rs 473.42 crore and Domestic Institutional Investors (DIIs) picked up shares worth Rs 490.04 crore yesterday.

The S&P BSE 30-share sensex resumed strong in line with better Asian cues on the back of sharp rally on Wall Street yesterday. It immediately touched an all-time intra-day high of 26,530.84 before logging a new closing peak of 26,420.67, a net rise of 29.71 points or 0.11 per cent.

Its previous record close of 26,390.96 and intra-day high of 26,413.11 was witnessed yesterday. The gauge has now spurted over 1,090 points in six straight sessions.

The broader 50-issue Nifty crossed 7,900-mark for the first time in its history and touched a high of 7,918.55 before settling at 7,897.50 -a new peak at close.

Its previous record closing of 7,874.25 and intra-trade record high of 7,880.50 was touched in yesterday's trade. Only BSE IT and Teck indices closed in the red while 10 other indices finished up with 0.13-2.25 per cent gains.

"Profit booking was seen in banking at higher levels. Capital good stocks also dragged indices with profit booking coming in. Auto stocks provided strong support," said Kiran Kumar Kavikondala, Director & CEO, WealthRays Securities.

Shares of mid-cap and small-cap companies also continued their upward march on heavy buying by retail investors. The S&P BSE Mid-cap index and the S&P BSE Small-cap index closed up 1.10 per cent and 1.21 per cent respectively, outperforming the Sensex.

Jignesh Chaudhary, Head of Research, Veracity Broking Services said: "Positive sentiments in global equities helped local indices to post new all-time highs and close strong with the help of bluechips. There was support from FIIs and DIIs."

Asian stocks closed higher following firm overnight close of US stocks amid upbeat US housing data and hopes of direct clash in Ukraine. Key benchmark indices in China, Hong Kong, Japan, Singapore, South Korea and Taiwan finished up between 0.11 per cent and 1.12 per cent.

European markets were trading higher in the late morning deals as inflation in the UK cooled more than forecast in July and reducing geo-political concerns. The CAC was up 0.37 per cent, the DAX 0.95 per cent and the FTSE 0.48 per cent.

In all, 19 stocks from Sensex pack ended with gains while 11 others finished with losses. M&M was the top gainer with a rise of 3.67 per cent followed by Tata Motors 2.95 per cent, BHEL 2.80 per cent, Bajaj Auto 2.46 per cent, Dr Reddy's Lab 1.85 per cent and Maruti Suzuki 1.62 per cent.

Sesa Sterlite 1.52 per cent, Coal India 1.44 per cent, Hero MotoCorp 1.26 per cent, L&T 1.05 per cent also gained handsomely. However, HDFC declined 2.48 per cent, TCS 1.93 per cent and HDFC Bank 0.98 per cent among laggards.

In S&P BSE sectoral indices, Auto index gained 2.25 per cent, Realty 1.63 per cent, Power 1.25 per cent and Capital Goods 1.11 per cent. However, IT was down 0.57 per cent.

"After this vertical recovery, we expect index to take a pause in the next session but stock specific moves would continue. The situation has slightly improved in last two sessions with participation from the selective stocks in Midcap and Smallcap space; however, a major portion is still trading around their recent lows," said Jayant Manglik, President-retail distribution, Religare Securities.

The overall market breadth continued to be positive as 1,693 shares closed in the green while 1,266 settled in the red. The total turnover was higher at Rs 3,140.59 crore from Rs 2,584.41 crore yesterday.

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