- BSE Sensex surges 371 pts to cross 21,000-mark, Reliance Industries share price jumps on gas price hikeMarkets, Rs ignore Fed; FII demand fuels rallyIndian Rupee continues to trade strongerYearender: Blue-chips gain ground, small stocks suffer and Kingfisher Airlines falls 72 pct, Spicejet 63 pct
for the large part of the day following the Friday’s closing. Profit booking however was visible on both the indices. We expect the volatility on the markets to pick up as we enter the F&O expiry on Thursday 26th Dec.
The markets managed to move beyond 21,200 on the Sensex & 6300 on the Nifty by 2.30 pm but were unable to sustain themselves at those levels. Baring IT, all other sectoral indices were trading in the green with Cap Goods & Metals taking the lead. For tomorrow we anticipate a flat move on the markets & one that could see weakness seeping in by the time we close the trade for tomorrow as we have a holiday of account of X’mas on the 25th Dec & F&O expiry the day after. At the close, the markets were up with Sensex at 21,100.03 up 21 points & Nifty at 6,284.50, up by 10.25 points.
Strength of the Indian rupee was impressive at 61.86 against the USD at 3.30 pm. In our view, the Indian rupee should gain more strength in the days to come and rise to 61.50/61.35 before the month end USD demand by the OMCs.
With upside capped on the index we would advice booking profits at higher levels for the short to medium term. The next trigger for the markets would be in form of quarterly earnings which will unfold from second week of Jan 2014.
Alex Mathews, Head Research, Geojit BNP Paribas Financial Services Ltd:
NSE Nifty traded in a narrow range but we saw fresh buying in the mid cap and small cap stocks. The global markets were trading higher on the positive US GDP data and the IMF bullish outlook on the US economy.
As the Nifty is futures are well above 6300 thee are chances that Nifty futures may move well above 6400 before expiry.
Nifty closed at 6284 up around 10 points. The market breadth remained positive as there were seen 1587 stocks advancing against 925 stocks declining.
The Volatility index, VIX closed at 16.26 up around 1.49%.
Barring the IT sector, which closed down around 1%,