Buying in metal, auto and consumer durable shares today helped BSE benchmark Sensex rally for the second straight session and notch up a gain of 154 points to end at 27,395.73, amid firm global cues and renewed buying by foreign funds.
Markets were also boosted by optimism on the growth front while buzz that the government will use the ordinance route to push more economic reforms provided support, brokers said.
Buying was seen across-the-board as 11 out of 12 sectoral indices closed with gains while only BSE banking sectoral index finishing with minor losses.
Smart rise in Tata Motors, HDFC, RIL, ITC, TCS, Sesa Sterlite, Sun Pharma, Hero MotoCorp, Hindalco and HUL mainly supported the Sensex rise.
Economic growth is expected to pick up in the current fiscal and will be “much better” in 2015-16, Finance Minister Arun Jaitley today said in New Delhi. The Indian economy grew by 5.3 per cent in the September quarter from a year earlier, and is expected to grow 5.5 per cent in the year that ends on March 31, 2015.
The BSE 30-share gauge resumed better and remained in positive throughout the day to log a high of 27,507.25 before concluding at 27,395.73, a rise of 153.95 points or 0.57 per cent. On Friday, it had inched up by 33.17 points.
The 50-issue CNX Nifty of the NSE also improved further by 45.60 points, or 0.56 per cent, to 8,246.30.
“Firm global cues and …continuous inflow from the FIIs, added to the positivity,” said Jayant Manglik, President – Retail distribution, Religare Securities.
After 12 days of heavy sell-off since December 9, FPIs bought shares worth Rs 39.97 crore last Friday as per provisional data with bourses. This cheered participants.
Second-line stocks attracted good buying interest from retail investors as the year draws to a close.
Asian stocks ended mixed as indices in China, Hongkong, Singapore and Taiwan moved up by 0.74 per cent to 1.82 per cent while Japan and South Korea declined by 0.50 per cent 1.04 per cent respectively.
European stocks were also trading narrowly mixed as indices in France and Germany moved down by 0.09 per cent and 0.80 per cent while UK’s FTSE was quoting 0.17 per cent up.
Jignesh Chaudhary, Head of Research, Veracity Broking Services said: “Local Indian equities traded strong for the day with the help of front-line stocks. However, market trimmed some of its gain as the day progressed due to profit booking….”
Twenty-five scrips out of the 30-share Sensex pack ended higher while only five finished lower.
Major Sensex gainers were Sesa Sterlite (3.81 per cent), Hindalco (3.22 per cent), Coal India (2.22 per cent), Tata Motors (2.04 per cent), Hero Motocorp (1,86 per cent), Tata Steel (1.54 per cent) and Gail India (1.15 per cent).
Sun Pharma (1.12 per cent), BHEL (1.09 per cent), HUL (1.02 per cent), Reliance Industries (0.90 per cent), HDFC (0.87 per cent), TCS (0.77 per cent) and ONGC (0.73 per cent) also logged smart gains.
Among the S&P BSE sectoral indices, Metal rose by 2.36 per cent, followed by Auto 1.50 per cent, Consumer Durables 1.02 per cent, Healthcare 0.87 per cent, FMCG 0.77 per cent, Power 0.76 percent, Oil&Gas 0.69 percent and IT 0.68 per cent.
The BSE Small-cap and Mid-cap indices gained 0.53 per cent and 0.87 per cent respectively.
The total market breadth was positive as 1,617 stocks finished with gains while 1,307 stocks closed with losses and ruled steady at 112. The total turnover rose to Rs 2,260.96 crore from Rs 1,962.24 crore on last Friday.
Market Outlook by Vinod Nair, Head-Fundamental Research, Geojit BNP Paribas Financial Services
The possibility to pass ordinance in land and mining are added surprise for India market. It brings a possibility to have a stronger backbone for coming budget and secondly, increase capital investment by Indian corporate. Till date corporate are awaiting to see better reforms from Government and see a better domestic economy. Keeping aside global issues, this domestic aspect will be an important factor for near to long-term performance of India.
Market Wrap Up by Alex Mathews, Head Research, Geojit BNP Paribas Financial Services Ltd
Tracking the positive cues from the global front, the Indian markets opened higher. Nifty also crossed its psychological support of 8250 on the back of buying seen in the heavy weight counters. But some sort of profit booking was seen as of tracking the European markets.
Nifty today closed at 8246, up around 45 points. The market breadth turned to positive as there were seen 1606 stocks advancing against 1313 stocks declining. The Nifty volatility index, India VIX stood at 14.5825 down around 0.42%.
The Mid cap and small cap sectors ended up around 0.87% and 0.53% respectively.
Barring the banking sector which closed down around 0.15%, all other stocks ended in green. The major sectoral gainers for the day were Metal and Auto which ended up around 2.36% and 1.50% respectively.
In the stocks’ front, the gainers were Asian Paint and SSLT which ended up around 4.36% and 4.14% whereas the selling were seen PNB and Cairn which ended down around 1.33% and 1.10% respectively.
Metal stocks were up on the news that the government may take up the mining ordinance bill this week. News that the land acquisition bill may undergo changes by the government made the infrastructure stocks to rise.
The FIIs were net buyers in the capital market segment, bought shares worth Rs 39.97 crore on Friday, 26 December 2014. On the other hand the DIIs were also net buyers on 26 December 2014, bought shares worth Rs 417.29 crore as per the provisional data from the stock exchanges.
After opening with a positive note, the European markets fell ahead of the Greece’s new president election vote.