BSE Sensex rallied around 1 percent, in a sharp turnaround from earlier mild losses after the leaders of Germany, France, Russia and Ukraine reached a deal to end fighting in eastern Ukraine, sparking gains in global markets.
Sensex climbed 271.13 pts to close at 28,805.10 while Nifty ended 84.15 pts higher at 8,711.55.
Traders also cited relief after India’s Finance Minister Arun Jaitley vowed to continue with economic reforms, despite a setback for the ruling party in the recently concluded Delhi State elections.
The developments helped overcome earlier falls by bank shares over concerns that the country’s largest lender, State Bank of India may post lower-than-expected December-quarter earnings on Friday.
“Two things helped markets, one the Russia and Ukraine agree ceasefire, second the assurance by finance minister that the government will go ahead with the reforms,” said Deven Choksey, managing director at K R Choksey Securities.
The NSE index rose 0.98 percent to 8,711.55, marking its third consecutive daily gain, after earlier falling as much as 0.33 percent.
The BSE index rose 0.95 percent to 28,805.10.
Gains were led by drugmakers such as Dr. Reddy’s Laboratories Ltd and Cipla Ltd, which have a significant exposure to the Russian market.
Dr. Reddy’s gained 5.7 percent, while Cipla ended 3.8 percent higher.
Lenders even reversed earlier falls, with ICICI Bank ending up 1.3 percent after earlier falling as much as 1.4 percent. But State Bank of India fell 0.6 percent.
Shrikant Chouhan, Head- Technical Research, Kotak Securities
The market remained volatile in the first half on the back of weak global cues but it jumped on the announcement of Russia agrees Ukraine ceasefire. Technically, we are of the view that fresh buying has compelled short sellers to wind up their short positions in the last hour of the trading. The action was mainly seen in those stocks that have seen worst time in past few days for eg. Maruti, Hero motors, Larsen and Cipla. The fear ahead of the domestic numbers like IIP and CPI was completely missing and that will decide the next activity of the market.
The market has next major hurdle is in the range of 8800 and 8840. Support exists at 8620 and 8580. Fundamentally, we still feel that big investors are tracking growth based stories with a medium term to long term view and with a short term view ahead of the budget they are focusing primarily on Defence and Cement related stocks. Fundamentally the market should consolidate between 8900 and 8500 ahead of the budget but technically in case if the nifty breaks 9000 then there would be higher chances of hitting 9250 on Nifty.
Sensex surges 271 pts ahead of retail inflation, IIP numbers
(PTI) Markets gained for the third straight session today with the benchmark Sensex surging over 271 points to 28,805.10 on fag-end buying in some blue-chips ahead of retail inflation and IIP data.
The NSE Nifty index reclaimed the 8,700-mark by rising 84.15 points, or 0.98 per cent, to end at 8,711.55 after shuttling between 8,732.55 and 8,599.25.
After slipping briefly into the red, the broader indices gained pace towards the closing hours.
The BSE Sensex resumed higher at 28,650.25 on initial buying and advanced further to 28,685.88 but succumbed to profit-booking and fell back to touch the day’s low of 28,406.25 in late morning trade.
However, the index rebounded during the afternoon session to touch the day’s high of 28,838.52 on fag-end buying before concluding at 28,805.10, logging a gain of 271.13 points, or 0.95 per cent, from its previous closing. This is its strongest close since 28,717.91 on February 6.
In three successive days, Sensex has gained 577.71 points.
Dr Reddy emerged the major gainer among Sensex stocks by surging 5.49 per cent to Rs 3,327.50.
Other prominent gainers in the 30-share Sensex include BHEL, Cipla, GAIL, Hindalco, Maruti Suzuki, L&T, Sesa Sterlite, Tata Power, Axis Bank, HDFC Ltd, HDFC Bank, Hero MotoCorp, ICICI Bank, Infosys, M&M,NTPC, ONGC and RIL.
Sentiments buoyed by the Finance Minister Arun Jaitley’s statement that the defeat in Delhi polls will not slow down the pace of economic reforms and optimism over the forthcoming Budget.
Investors are now eyeing December IIP data and January retail inflation, to be released later today, brokers said.
Sectorally, the BSE Power index gained the most by rising 2.51 per cent, followed by Capital Goods index 2.33 per cent, Healthcare index 1.69 per cent, Auto index 1.47 per cent, Infrastructure index 1.32 per cent, Realty index 1.28 per cent and IT index 1.04 per cent.
Supported by retail investors’ buying, the small-cap index rose 1.27 per cent and mid-cap index surged 1.13 per cent.
Higher closing at other Asian markets and a better opening in Europe also influenced trading sentiments here.
Foreigners sold shares worth a net Rs 371.27 crore yesterday as per provisional data.