IT, oil shares help Sensex rise 51 pts; Nifty ends above 6K mark
The BSE benchmark index rose by 50.54 points, or 0.26 per cent, to 19,764.78, a level last seen in January 2011. The 30-share index had gained 288 points in previous two sessions.
Similarly, the 50-share NSE index Nifty ended 16.25 points up, or 0.27 per cent, at 6,009.50. This was the first time in two years that NSE Nifty closed above the 6,000-mark.
"Markets consolidated after recent rally, but inched higher to close above 6,000 mark led by gains in IT and Oil & gas stocks. Throughout the day, profit-booking was visible in banking stocks and momentum shifted to mid cap and small cap counters," said Amar Ambani, Head of Research, IIFL.
Reliance Industries and ONGC gained around 1.5-1.9 per cent. In the IT pack, Infosys and TCS jumped by 1.24 per cent each while Wipro inched up by 0.93 per cent.
Brokers said the sentiment was bolstered after the US budget bill was cleared and reports said the Institute for Supply Management's US factory index rose to 50.7 in December from 49.5 a month ago, signalling better outlook for IT firms.
Besides, hopes of attractive quarterly results by IT major Infosys next week and a interest rate cut by the Reserve Bank of India later this month boosted the sentiment, they added.
Dr Reddy's gained 2.35 per cent after launching generic Finasteride tablets with 180-day exclusivity in the US.
Bharti Airtel rose 2 per cent in line with peers with non-index constituents Idea, Rcom and MTNL up 3.5-4.6 percent.
However, after clocking gains in recently, shares of HDFC Bank, L&T, HDFC and ICICI Bank saw profit booking.
Support from Asian stocks which rose to 17-month high and a firm opening in Europe, helped Indian indices cement gains.
The Sensex, which started the New Year on a strong note, is likely to extend the bull-run and touch all-time high of 21,700 by this year-end, a research report by HSBC said.
Globally, Asian stocks closed narrowly mixed. Indices in Hong Kong, Singapore and Taiwan closed higher while South Korea ended lower. China and Japan markets were closed.
However, European markets were trading lower in their afternoon deals on profit-booking after yesterday's rally. The CAC was down by 0.54 per cent, the DAX by 0.28 per cent and the FTSE by 0.13 per cent.
From the Sensex pack, 16 shares closed with losses while 14 scrips ended with gains. Dr Reddy's Lab was the top gainer with a rise of 2.35 per cent, followed by Bharti Airtel (1.99 pc), ONGC (1.95 pc), RIL (1.51 pc), Infosys (1.24 pc), TCS (1.24 pc), SBI (0.93 pc) and Wipro (0.93 pc).
However, Tata Power declined by 1.39 per cent, followed by Sun Pharma (1.09 pc), Maruti Suzuki (0.95 pc), Hero Motocorp (0.87 pc), HDFC Bank (0.72 pc) and ITC (0.70 pc).
Among sectoral indices, the BSE-Oil&Gas rose by 1.37 per cent, followed by BSE-Teck (1.32 pc), BSE-IT (1.10 pc) and BSE-Realty (1.09 pc). However, BSE-FMCG eased by 0.50 per cent, BSE-CD by 0.38 per cent and BSE-CG by 0.38 per cent.
Outside broader indices, shares of Manappuram Finance and Muthoot Finance were up sharply on a RBI panel's proposal that gold loan firms be allowed to lend 75 per cent against the value of gold pledged compared to 60 per cent now, said Milan Bavishi, Head Research, Inventure Growth & Securities.
Total market breadth remained positive as 1,713 stocks closed up while 1,263 shares finished lower. The total turnover was relatively higher at Rs 2,688.83 crore from Rs 2,510.23 crore yesterday. Foreign Institutional Investors (FIIs) bought shares worth a net Rs 1107.66 crore yesterday as per provisional data from the stock exchanges.
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