Nifty rises to new closing peak, Sensex recovers 76 pts
After a day’s breather, domestic stock markets resumed their upward move with NSE index Nifty logging a new closing peak and the BSE Sensex
Mumbai: After a day’s breather, domestic stock markets resumed their upward move with NSE index Nifty logging a new closing peak and the BSE Sensex rebounding 76 points today to end near its record-high levels on good buying in consumer durable, realty and power shares.
Firm global cues also gave support even as sentiment was slightly weak after FIIs were net sellers to the tune of Rs 266.22 crore yesterday as per provisional data, traders said.
However, retail investors continued to purchase second-line stocks. As a result, S&P BSE-Midcap and Smallcap indices rose 2.11 per cent and 2.31 per cent respectively, outshining the blue-chip Sensex.
“It seems that participants are utilising this prevailing consolidation phase as an entry opportunity especially those who were fence sitter during the election period,” said Jayant Manglik, President-retail distribution, Religare Securities.
Buying was mainly seen across-the-board as 10 out of 12 S&P BSE sectoral indices closed with gains while only teck and IT finished in the red.
Tracking a rally in Asian stocks following firm closing on Wall Street yesterday, the BSE 30-share barometer resumed strong. It improved further to a high of 24,524.76 and remained in positive territory throughout the day. It settled at 24,374.40, a rise of 76.38 points or 0.31 per cent.
Yesterday, it had closed down by 78.86 points or 0.32 per cent. It record closing high of 24,376.88 was hit on May 20.
Meanwhile, the NSE 50-issue CNX Nifty rose 23.50 points, or 0.32 per cent, to register a new closing peak of 7,276.40. It surpassed its previous peak of 7,275.50. Yesterday, Nifty fell by 22.60 points.
Smart rise was seen in RIL, SBI, TCS, NTPC, ITC, ICICI Bank, Maruti Suzuki, Sesa Sterlite, Coal India, Axis Bank, Gail India, Tata Power, Tata Steel and Bajaj Auto scrips.
HDFC, Infosys, Tata Motors, HDFC Bank, ONGC, Bharti Airtel, Wipro and Hindalco shares witnessed profit-booking.
Globally, the Chinese stock market closed with small losses even though the manufacturing PMI rose to five-month high of 49.7 in May, from final reading of 48.1 in April, according to the preliminary reading from HSBC.
However, other Asian markets ended with gains with Japan taking the lead logging its biggest rise in a month.
European stocks were trading mixed with upward bias in their late morning deals. Germany’s DAX was up by 0.26 per cent and the UK’s FTSE by 0.29 per cent while France’s CAC was down by 0.19 per cent.
On Wall Street yesterday, the Dow Jones Industrial Average and the Nasdaq Composite Index closed higher by 0.97 per cent and 0.86 per cent respectively.
Jignesh Chaudhary, Head of Research, Veracity Broking Services said, “Local equities traded positively and added over half percent during the day with the help of some bluechips. Also, jewellery making stocks like Gitanjali gems gained after RBI eased gold import and gold metal loan rules.’
Seventeen scrips out of the 30-share Sensex pack ended higher while 13 others finished lower.
Major gainers were NTPC (5.31 per cent), Coal India (4.78 per cent), Maruti Suzuki (4.44 per cent), SSLT (3.91 per cent), Tata Power (3.27 per cent), Gail India (3.00 per cent), Reliance Ind (2.15 per cent), SBI (2.10 per cent), Tata Steel (1.87 per cent) and Axis Bank (1.43 per cent). TCS (1.41 per cent) and Bajaj Auto (1.35 per cent) also rose smartly.
However, Hindalco dropped by 2.79 per cent, followed by BHEL 2.75 per cent, Bharti Airtel 2.44 per cent, HDFC 2.23 per cent, Wipro 1.74 per cent and Hero Motocorp 1.57 per cent.
Tata Motors (1.53 per cent), Infosys (1.38 per cent), M&M (1.35 per cent) and ONGC (1.26 per cent) were also notable laggards.
Among the S&P BSE sectoral indices, Consumer Durables rose by 6.78 per cent, Realty by 5.54 per cent, Power by 2.20 per cent, Metal by 1.80 per cent and Oil&Gas by 1.10 per cent.
Market breadth continued to remain firm as 2,069 stocks finished higher, 774 closed lower while 83 ruled steady. The total turnover rose to Rs 5,390.67 crore from Rs 4,696.14 crore yesterday.