RIL, HUL lift Sensex 400 points, Nifty above 12,200; key factors contributing to the gains

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Published: February 12, 2020 10:22:34 AM

S&P BSE Sensex was trading 390 points or 0.94 per cent higher at 41,606 points, while the broader Nifty 50 index was ruling above 12,200, up 104 points or 0.86 per cent

Sensex, NiftyHUL, RIL, HDFC twins, ICICI Bank, Axis Bank are among top index contributors in the morning deals

Domestic equity market benchmarks Sensex and Nifty were trading nearly a per cent higher on Wednesday tacking cues from largely positive Asian markets. “Headline indices have opened 1% up once again with weak market breadth as NSE Advance-Decline ratio continues to be around 1:1, and mid and small caps lag large caps in terms of price performance. Indusind Bank has recovered from a gap open down on newsflow of a rating downgrade by Moody’s, while ICICI Bank is also seeing short-covering after the ADR premium jumped to a 2-sigma high last night. With most quarterly results and event risks behind us, market moves are being largely driven by a global liquidity-driven rally across indices. A pick-up in bank credit growth would be the most meaningful trigger for a resumption of the broader market rally, which has stalled post Budget,” S Hariharan, Head- Sales Trading, Emkay Global Financial Services said.

Key factors behind Sensex’s rally-

Nifty above 12,200-mark– Around 10 AM, the S&P BSE Sensex was trading 390 points or 0.94 per cent higher at 41,606 points, while the broader Nifty 50 index was ruling above 12,200, up 104 points or 0.86 per cent.

29 out of 30 stocks trading in green- As many as 29 stocks out of 30 Sensex stocks were trading in green. HUL was the top gainer, up over 4% in the early trade, followed by HDFC, Nestle India, Kotak Mahindra Bank, Bharti Airtel and NTPC. On the flip side, IndusInd Bank was the only laggard on the index, down 1.39 per cent, after rating agency Moody’s changed its outlook to ‘negative.

Top Sensex contributors- HUL, RIL, HDFC twins, ICICI Bank, Axis Bank are among top index contributors in the morning deals. Around 9.45 AM, Sensex was up 372 points or 0.90 per cent to 41,588 points, while Nifty 50 was ruling above 12,200, up 102 points or 0.84 per cent.

Nifty FMCG index gains 450 points- Nifty FMCG index gained 456 points or 1.50 per cent to 30,870 points, led by gains in HUL, Dabur, Godrej Consumer Products and Nestle India. While Nifty PSU Bank was trading lower weighed by J&K Bank, Indian Bank and Indian Overseas Bank.

IRCTC, Hindalco to report December quarter earnings- IRCTC, Divi’s Laboratories, Dish TV, NBCC, Info Edge India, Omaxe, PFC, Religare, Hindalco, Aarti Industries, ABB India, Alchemist, Anjani Finance, Bajaj Steel Industries, Centrum Capital, Dharani Sugars & Chemicals, Jamna Auto Industries, Jaiprakash Power Ventures and Mahamaya Steel Industries are among 486 companies that are scheduled to release their quarterly earnings.

FII and DII data- Foreign institutional investors (FIIs) sold shares worth Rs 209.39 crore, while domestic institutional investors (DIIs) bought shares of worth Rs 344.63 crore in the Indian equity market on February 11, provisional data available on the NSE showed.

Global markets- Asian shares inched higher on Wednesday as new coronavirus cases fell. MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.31 per cent. Chinese shares fell 0.12 per cent. Shares in Hong Kong rose 0.57 per cent while Australian shares were up 0.52 per cent and Japan’s Nikkei stock index rose 0.6 per cent. On Wall Street, the Dow Jones was flat, the S&P 500 gained 0.17 per cent, and the Nasdaq Composite added 0.11 per cent during the overnight trade on Tuesday.

New coronavirus cases lowest since January– China on Wednesday reported its lowest number of new coronavirus cases since late January, lending credence to a prediction from the country’s senior medical adviser that the outbreak could be over by April. International experts, however, remain alarmed by the spread of the flu-like virus which has now killed more than 1,100 people, all but two in mainland China, as per the Reuters report.

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