Sensex and Nifty rise marginally to hit new three-month closing high in volatile trade

By: | Updated: July 17, 2015 5:35 PM

BSE Sensex ended 17.19 points higher at 28,463.31 in volatile while NSE Nifty gained 1.80 points at 8,609.85.

sensexBSE Sensex ended 17.19 pts higher at 28,463.31 in volatile while NSE Nifty gained 1.80 points at 8,609.85. (PTI)

BSE Sensex ended 17.19 points higher at 28,463.31 in volatile while NSE Nifty gained 1.80 points at 8,609.85.

Indian shares ended marginally higher on Friday, marking their highest close in nearly three months for a second day, even as investors sold financial stocks seeking more clarity on the government’s decision to make foreign holdings fungible.

The BSE index ended up 0.06 percent, while the NSE index closed 0.02 percent higher, marking their highest close since April 16.

Market Outlook by Vinod Nair, Head-Fundamental Research, Geojit BNP Paribas Financial Services
Indices traded in a narrow range throughout the day. Markets swings between positive and negative terrain as it seems to await to take cues from the Monsoon showers and corporate earnings ahead. Market will also keep a close eye on proceedings of the parliament which begins next week.

For the week, the BSE 30-share index gained 2.9 percent and the broader NSE index rose 2.98 percent.

Mid-cap stocks scaled to new highs for the third consecutive session on Friday driven by renewed buying interest after the Greek law-makers approved new austerity measures and European finance chiefs agreed to provide bridge financing and the blueprint for a three-year rescue plan. US’ nuclear deal with Iran and the decline in crude oil prices further boosted sentiment, analysts said.

Market Wrap Up by Alex Mathews, Head Research, Geojit BNP Paribas Financial Services
The markets remained choppy as of lack of triggers from both the domestic and global front. The investors are now focusing on the earnings season along with the Monsoon session of the Parliament for more cues. Market may remain in a range on coming days before giving a break out on either direction.
Nifty today closed at 8609 up around 1 point. The market breadth was flat as there were seen 1433 stocks advancing against 1402 stocks declining. The Nifty volatility index, India VIX stood at 14.8025 up around 0.13%.
The mid-cap and small cap sector closed up around 0.20% and 0.44% respectively.
Consumer Durables and Power were the major gainers in the sectorial front, closed up around 1.92% and 0.96% respectively. The losers on other end were Realty and Metal which closed down around 0.50% and 0.45% respectively.
The gainers in the stocks’ front were Tech Mahindra and M&M, closed up around 2.07% and 1.82% respectively. Selling was seen in Asian Paint and HDFC which ended down around 2.74% and 2.34% respectively.
The FIIs were net buyers in the cash market segment on 16 July 2015, Thursday, bought shares worth Rs 745.81 crore. The DIIs on the other hand were sellers on 16 July, sold shares worth Rs 98.51 crore in the capital markets segment.
The European markets were little changed as the investors’ major focus was on Greece. Today the German lawmakers will pass their verdict on Greece’s bailout plan, which if approved will give way for the creditors to start talks with the country. The US index futures were also trading lower.
On Monday companies like DS Kulkarni, Ultratech, Welspun India, Sasken, Tinplate, Tata Coffee, Salimar Paints, LIC Housing, Kitex, Kajaria Ceramics, Hind Zinc and CCL may announce their earnings.

Starting off higher, the gauge continued its upward march to hit the day’s high of 28,576.32 on the back of sustained foreign inflows after the government simplified FDI rules and a firming Asian trend.

Later, profit-booking took hold that wiped off the gains completely and took the benchmark back to the negative zone as it touched a low of 28,417.46. But some late-buying saved the day and helped the Sensex close higher by 17.19 points, or 0.06 per cent, at 28,463.31.

The index has now gained 530.41 points in the past three straight sessions.

Market View by Anand James, Co Head Technical Research Desk, Geojit BNP Paribas
The scrapping of government until 49% of portfolio investment is expected to improve the ease of doing business in India, increasing the potential for more foreign inflows. Though banks may not benefit straight away, as sectoral sub caps shall continue to remain for both banks and defence, the move shall benefit them indirectly as prospects of economic growth and asset quality would improve. The shot in the arm for economy thus comes just ahead of RBI rate announcement, which may be able to take a less lenient take on monsoons, which has so far been 6% below the LPA according to IMD. Forecasts for better monsoons in the last week of July and beginning of August, also ups the chance of a rate cut, considering the not-so-optimistic figures of inflation & growth which were recently announced.

Banking stocks, which were in the limelight yesterday, saw some selling pressure following reports that the government’s approval of composite foreign investment cap by clubbing all forms of overseas investments won’t benefit the sector, brokers said.

The 50-share Nifty, after climbing to the session’s high of 8,642.95, too succumbed to the selling pressure and settled the day at 8,609.85, up 1.80 points, or 0.02 per cent.

Market View by Gaurav Jain, Director, Hem Securities
After a strong outperformance over the course of the month, with the Indian markets beating the MSCI-world by 5%, India is taking a pause, awaiting clarification regarding the composite-cap and as well as outcome of the important parliament monsoon session which is starting 21st July. There is high expectation on GST and Land Bill, which should act as an immediate trigger but with high risk to expectation. The two bills are currently under preview of the parliamentary select committees.

Intra-day, it went below the 8,600-mark to touch a low of 8,593.15.

Of the 30-pack Sensex, 19 ended with gains and 11 lost.

Little-changed European stocks after their longest stretch of gains since January and a mixed closing at other Asian markets influenced sentiment, they added.

BHEL was the star of the day, up 2.02 per cent, followed by M&M, Infosys, Vedanta and ITC.

Bucking the trend, HDFC ended in the red. Others including Coal India, Hind Unilever and Axis Bank too lost ground.

Sector-wise, BSE consumer durables index gained the most (up 1.92 per cent), followed by technology, power, IT and healthcare.

Buoyed by buying from retail investors, the small-cap index ticked up 0.44 per cent and mid-cap index 0.20 per cent.

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