Sensex ends 350 pts higher led by RIL, HUL, pvt bank stocks; key factors that fuelled the rally

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Updated: February 12, 2020 4:17:47 PM

S&P BSE Sensex closed 350 points or 0.85 per cent higher at 41,565 points, while the broader Nifty 50 index settled at 12,201, up 93 points or 0.77 per cent.

Sensex, NiftyMarkets will react to the macroeconomic data viz. IIP data and CPI inflation numbers in early trade on Thursday

Tracking positive global cues and favourable domestic sentiment, Sensex and Nifty closed a per cent higher on Wednesday. “Global tailwind is supporting the current bullish momentum in the Indian market and we are outperforming Asian peers post the budget. Large caps are doing well but the broader market is underperforming for the last two days where the advance-decline ratio is in favor of decline. FIIs are covering their short positions in the index future but they are reluctant to buy in the cash market. The market may again head towards an all-time high once FIIs will start buying in the cash market,” Santosh Meena, Senior Analyst, TradingBells said.

What fuelled today’s markets-

Sensex, Nifty end higher for second consecutive session– S&P BSE Sensex closed 350 points or 0.85 per cent higher at 41,565 points, while the broader Nifty 50 index settled at 12,201, up 93 points or 0.77 per cent.

HUL top Sensex gainer– As many as 23 Sensex stocks finished in green in Wednesday’s trade. HUL was the top gainer with a growth of 5.07 per cent, followed by Kotak Mahindra Bank, Nestle India, ICICI Bank and M&M. On the flip side, SBI was the top laggard on the index, down 1.34 per cent. IndusInd Bank, Sun Pharma, UltraTech Cement and Titan were other among losers on the pack.

Nifty FMCG index jumps over 550 points- The Nifty FMCG index gained 572 points to end at 30,986 led by gains in HUL, Godrej Consumer Products and Dabur India. However, the Nifty Pharma index settled lower weighed by Piramal Enterprises, Glenmark Pharmaceuticals and Divi’s Laboratories.

Broader market underperforms– In the broader market, S&P BSE MidCap index ended 34 points or 0.21 per cent lower at 15,801, while the S&P SmallCap index finished at 14,734, down 16 points or 0.11 per cent.

Technical view- “Technically, the overall texture of the market has turned bullish as Nifty witnessed closing above sacrosanct hurdle of 12170 level which may lead a move towards 12500 level in the coming days where 12300 will be intermediate resistance level while 50-DMA of 12123 will act as immediate support in the downside,” Santosh Meena, Senior Analyst, TradingBells said

Risk of coronavirus fading- “As per the latest reports, the risk of Coronavirus spreading further is fading away and it may be over by April, triggered rebound across the global markets including ours. Besides, the statement by the FM that green shoots of growth are already visible further added to positivity. Markets will react to the macroeconomic data viz. IIP data and CPI inflation numbers in early trade on Thursday. Indications are in the favour of up move to continue but participation would remain restricted so traders should plan their positions accordingly and prefer private banking, financials, FMCG and IT for fresh buying,” Ajit Mishra, VP – Research, Religare Broking Ltd said.

Coronavirus cases fall- The number of new cases in Hubei, the province at the epicentre of the outbreak, was 1,068 as of Tuesday, down from a peak of over 3,000 new cases on February 4, and the lowest number of new infections since January 31, as per Reuters news report.

Rate sensitive stocks to remain in focus on Thursday- “The impact of coronavirus has already affected the supply chains and factory activities across the globe, but the ground reality is improving in China and we can expect improvement in the next quarter. The domestic market is awaiting the January inflation and consensus show a spike in inflation which is expected to impact rate-sensitive stocks,” Vinod Nair- Head of Research- Geojit Financial Services said.

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