BSE Sensex rises to 1-month high, marks best weekly gain in 11; Sun Pharma share price jumps

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Updated: January 16, 2015 5:12:44 PM

BSE Sensex little changed on Friday after posting its biggest daily gain in eight months in the previous session...

BSE Sensex, NSE Nifty, Stock marketAfter its biggest single-day rally in over 5 years in Thursday’s trade, the BSE Sensex slipped below the 28,000 level early today but recovered thereafter. (Reuters)

BSE Sensex surged to its highest level in more than a month on Friday, marking the best weekly performance since October, as blue chips such as Larsen and Toubro gained after the central bank’s unexpected rate cut on Thursday.

Software exporter Tata Consultancy Services dropped 0.3 percent, dragging down peers, after it reported flat sequential U.S. dollar revenue growth for the December quarter.

Broader sentiment was also hit as regional shares fell after Switzerland’s central bank unexpectedly scrapped its currency cap – jolting markets already roiled by plunging commodities prices.

The broader NSE index ended 0.23 percent at 8,513.80, hitting a one-month high and adding 2.8 percent this week.

The benchmark BSE index closed 0.17 percent higher at 28,121.89. The index gained 2.4 percent in the week.

Both indexes marked their best weekly performance since the week ended Oct. 31.

Blue-chip stocks gained. Larsen and Toubro ended 1.2 percent higher, while Sun Pharma added 2.9 percent.

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Sanjeev Zarbade, Vice President- Private Client Group Research, Kotak Securities:
Sensex was rangebound during the day on the back of largely negative global cues. For the week, the Sensex posted a strong show with a gain of 3% (aided by a surprise rate cut by the RBI) outperforming the other developed market indices. During the week, the US indices were in the negative on the back of weak retail sales and disappointing quarterly numbers from some financial companies. Mining stocks were among the major laggards during the week, given weakness in metal prices especially that of copper.
Crude oil prices continued to remain under pressure as they settled below the USD 50 /barrel mark, triggering concerns among economies of a possible deflation in the making. The next few days are expected to be eventful with the ECB likely to unleash its own QE and which would be followed by the Elections in Greece on Jan 26.
So far the Indian markets are concerned, the economic indicators are now begun to show some strength (IIP and inflation data). All indications are that the next fiscal economic growth should range between 5.5-6.5%. The market sentiment remains positive.
We remain positive on private sector banks, IT, Auto and select infrastructure and Capital Goods companies.

Sensex rises 46 pts to log best weekly gain in over 2 months

(PTI) The benchmark Sensex today rose over 46 points to end at 28,121.89 on continued buying in blue-chip shares and wrapped up its best weekly gain in over two months.

Similarly, the NSE Nifty index inched up by 19.65 points, or 0.23 per cent, to close at 8,513.80.

Markets were in a positive mood after Thursday’s massive rally as RBI Governor Raghuram Rajan sprang a surprise by cutting interest rates by 0.25 per cent to boost growth.

The 30-share Sensex, after opening lower on profit booking in recent gainers, dipped below 28,000-mark to touch a low of 27,945.31. However, it gained ground and settled at 28,121.89, a rise of 46.34 points or 0.17 per cent.

For the week, the BSE index gained 663 points. This is its best weekly rise in absolute terms since October 31.

Besides the rate cut, macroeconomic data also supported buying as government data showed that India’s trade deficit declined to 10-month low in December.

“Markets remained in a very narrow range but in bullish mode to adjust for the effect of a interest rate cut on the balance sheets of India Inc,” said Bonanza Portfolio, Associate Fund Manager, Hiren Dhakan.

However, tepid earnings of some firms affected trading. TCS shares fell after the company posted a marginal 0.1 per cent slide in its net profits in December quarter.

Heavyweight RIL saw some demand ahead of earnings.
Of 30 Sensex constituents, 18 shares ended with gains led by Sun Pharma, Coal India, Hindustan Unilever, M&M, BHEL, Sesa Sterlite, Cipla, L&T, Dr Reddys, Tata Power and HDFC Bank.

Sectorwise, the BSE Consumer Durables index gained the most by rising 1.98 per cent, followed by Healthcare index 1.41 per cent, Power index 1.36 per cent and Capital Goods index 1.23 per cent, among others.

The BSE Mid-cap Index also rose by 0.32 per cent while the Small-cap index fell 0.04 per cent.

Globally, a weak closing at other Asian bourses and a lower opening at European markets following a surprise move by the Swiss central bank to strengthen its currency were the major international cues today.

Foreigners bought shares worth net Rs 1,738.24 crore yesterday as per provisional data.

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