Wednesday, 3 September 2014

Nifty closes above 8100, Sensex gains for 9th straight day

4:30 PM: Nifty closes above 8100, Sensex gains for 9th straight day

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The 30-share BSE Sensex continued its northward journey for the ninth consecutive session on Wednesday, registering another record closing high boosted by technology stocks. Though it was a volatile session amid reports of Ukraine and Russia agreeing to a process to reach a permanent ceasefire, the market clocked 0.4 percent gains.

The Nifty closed above 8100 level for the first time, up 31.55 points at 8114.60 while the Sensex climbed 120.55 points to 27139.94 after hitting an intraday high of 27225.85. The BSE Midcap and Smallcap indices gained 0.9 percent and 0.4 percent, respectively.

Experts remained hopeful of big gains in equity market going ahead but they are cautiously bullish at current levels due to big run up in last few sessions.

Manish Gunwani, Senior Fund Manager of ICICI Prudential AMC believes the economy is in a sweet spot, which will benefit the equity market. However, he maintains a ‘cautiously bullish’ stance as most sectors trade near their long-term average valuations. He says investors should moderate their return expectations.

On the global front, media report indicated that Ukraine's president Petro Poroshenko has reached an agreement with Russian president Vladimir Putin on a permanent cease fire in Eastern Ukraine but the Russian official said Putin didn't agree to ceasefire with Ukraine.

European markets like France’s CAC, Germany’s DAX and Britain’s FTSE were up 0.8-1.3 percent while Russia and Ukraine markets climbed over 4 percent (at 16 hours IST. Asian markets closed higher with the China’s Shanghai and Hong Kong’s Hang Seng rising 1 percent and 2.3 percent, respectively.

On the home turf, technology, metals and Tata group stocks led the support whereas the selling in banking and financials, FMCG, and two-wheeler majors capped the upside.

Technology majors TCS, Infosys and Wipro, which did not participate in last month’s rally, started gaining momentum. These stocks rallied 2.5-3.4 percent. India’s largest telecom operator Bharti Airtel gained 3 percent, in addition to 4 percent rally in previous session.

Engineering and construction major Larsen and Toubro was up 1.4 percent as Competition Commission of India cleared the proposed acquisition of L&T Infrastructure Development Projects' securities by foreign venture capital investor CPP Investment Board Singaporean Holdings 1.
Commercial vehicle maker Tata Motors climbed over a percent on bagging order for 2700 buses under JNNURM scheme. Brokerage house Jefferies advises buying the stock with a target price of Rs 627 on the back of great product momentum in JLR, recovering domestic truck market and most importantly, on lesser concerns on sustainability of profitability in China.

HPCL and IOC gained more than a percent after Brent crude prices dropped to 16-month lows of USD 100 a barrel on account of the strength in the dollar and demand concerns emanating out of China. However, Brent crude could not sustain that level for long, climbing above USD 101 a barrel.
Among others, top coal mining company Coal India saw sharp upmove in last hour of trade, up 3.4 percent followed by Axis Bank, M&M, Tata Steel and Tata Power with over a percent.

However, shares of ITC, ONGC, ICICI Bank, HDFC, State Bank of India, GAIL, Bajaj Auto, Hero Motocorp, Cipla and BHEL declined on profit-taking.

The market breadth was negative with the decliners beating advancers by a ratio of 1548 to 1473 on the Bombay Stock Exchange.

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