India's broader NSE index marked its highest closing level on Monday as infrastructure-related stocks surged.
BSE Sensex closed up by 97.64 points at 29,459.14 today while NSE Nifty jumped 54.90 pts to end at a new peak of 8,956.75 points.
India’s broader NSE index marked its highest closing level on Monday as infrastructure-related stocks ranging from capital goods makers such as Larsen & Toubro to cement makers and power sector lenders surged on the federal budget’s infra push.
The 50-share index gained 0.62 percent to 8,956.75, surpassing its previous record of 8,952.35 hit on Jan. 29.
India will increase investment in infrastructure by 700 billion rupees ($11.35 billion) in the fiscal year 2015-16, Finance Minister Arun Jaitley said on Saturday, when presenting the government’s full-year budget that put growth before reforms and fiscal deficit cuts.
Private sector banks such as Axis Bank, seen as strong beneficiaries of the government’s move to make no distinction between foreign direct investment and foreign portfolio investment, surged.
The move is expected to raise India’s weight in MSCI indexes, thereby soothing worries about huge India overweight positions.
The benchmark BSE index closed 0.33 percent higher at 29,459.14.
Both the indexes marked their third consecutive session of gains.
Market Outlook by Vinod Nair, Head-Fundamental Research, Geojit BNP Paribas Financial Services
The Government has clearly provided its intention in the budget and it is likely to be active in the budget session. The focus will shift to the impending bills in the session. Important bills like Land, Labor, Coal and Insurance are likely to come for discussion during the session. Market has positively taken the government’s intent to spend more. Hence Infrastructure and allied segments are in the interest.
Market Wrap Up by Alex Mathews, Head Research, Geojit BNP Paribas Financial Services
After a positive opening, the markets gave up all its gains on the back of higher level profit booking and weak HSBC manufacturing purchasing manager’s index. But the markets rebounded in the closing session and closed above its physiological resistance at 8950.
The HSBC manufacturing purchasing managers’ index fell for a second consecutive month to 51.2 in February from 52.9 in the previous month. A reading above separates growth from contraction.
Nifty today closed at 8956 up around 54 points. The market breadth changed to positive from negative as there were seen 1531 stocks advancing against 1333 stocks declining. The Nifty volatility index, India VIX stood at 15.8475 down around 6.61%.
The Mid-cap and small – cap ended outperformed the broader markets, closed up 1.31% and 0.93% respectively.
The major sectorial gainers for the day were Banking and Healthcare which closed up around 3.27% and 2.03% respectively. On the other end the losers were FMCG and Consumer Durables, ended down around 4.09% and 2.05% respectively.
In the stocks’ front, buying was seen in Ultratech and Ambuja cements, closed up around 7.70% and 6.73% respectively and on the other end the sellers were ITC and Jindal Steel which closed down around 5.04% and 4.11% respectively.
The FIIs were net buyers in the capital market segment, bought shares worth Rs 614.03 crore on Saturday, 28 February 2015. On the other hand the DIIs were net sellers on 28 February 2014, sold shares worth Rs 740.74 crore as per the provisional data from the stock exchanges.
The European markets were little changed and the US index futures were up.
Nifty hits new peak, Sensex up 97 pts on Budget cheer
(PTI) The benchmark Sensex today continued its upward journey for the third straight session, rising over 97 points higher to end at 29,459.14 while the Nifty index closed at a new peak of 8,956.75 led by surge in capital goods and banking shares boosted by Budget proposals.
Barring Maruti Suzuki, most auto shares faced selling pressure on weak monthly sales. ITC continued to be sellers’ radar and the FMCG major slipped another 5 per cent on worries over the Budget proposal to raise excise duty on cigarettes.
Healthcare and power shares provided support to the indices, said brokers.
After moving between 8,885.45 and 8,972.35, the 50-share NSE Nifty settled with a gain of 54.90 points, or 0.62 per cent, to close at new peak of 8,956.75. This surpasses its previous record closing of 8,952.35 reached on January 29.
After opening on a strong footing at 29,533.42, the 30-share Sensex rose further to touch day’s high of 29,576.32.
However, it slipped into the negative zone to touch a low of 29,259.77 as selling emerged after an HSBC survey showed manufacturing growth slipping to 5-month low in February. The market also appeared tepid after the Budget evoked mixed response from global rating agencies.
Helped by fag-end buying, the Sensex finally bounced back and closed 97.64 points,or 0.33 per cent higher, at 29,459.14.
The gauge has gained 712.49 points in three straight days.
“After an optimistic Budget and with Greek fears subsiding, the market mood has turned mildly optimistic,” said Bonanza Portfolio, Senior Vice President, Rakesh Goyal.
Market analysts said capital goods and banking shares saw heavy demand after Finance Minister Arun Jaitley proposed a sizeable increase in investment in the infrastructure sector.
FIIs, which did not make substantial purchases on Budget day, resorted to good buying today after GAAR deferral, they added.
Major gainers that supported the rally include Axis Bank, Cipla, BHEL, L&T, Hindustan Unilever, Maruti Suzuki and NTPC.
Sectorwise, the BSE Capital goods index gained the most by climbing 3.58 per cent, followed by Healthcare 1.87 per cent, Banking index 1.81 per cent, Power 1.46 per cent among others.