The biggest gainers on Nifty were Eicher Motors, ICICI Bank, RIL, Tech Mahindra and SBI. The stock price of Eicher Motors rose by 4.87%.
Indian equities gained on Thursday on positive global cues coming from European markets and due to the rally in shares of Reliance Industries. Also, investors chose to focus on better than expected corporate earnings instead of the rising US-China tensions. The benchmark Sensex was up by 268.9 points or 0.71% to close at 38,140.7. The broader Nifty50 was up by 82.85 points or 0.74% to close at 11,215.4.
After the day’s rally, the benchmark indices Sensex and Nifty are currently 9.9% to 10.1% short of their January all-time highs. So far, the stock markets have risen by 46% from their March lows. While the Nifty is only 10.1% short of its all time highs, market experts are of the view that the stock markets may not breach the levels. Deepak Jasani, head for retail research, HDFC Securities, said, “As of now, it seems difficult that the Nifty could reach its all-time highs but, at the same time it cannot be ruled out since flow of gross money power is not easy to predict. It seems difficult that the Nifty would reach an all-time high because the traditional methods of valuations show that it is fairly valued having regard to the fact that there is still a lot more pain left for the economy, corporates and the markets which do not seem to be discounted in the current and elevated valuations.”
The stock markets on Thursday were pulled up by the shares of Reliance Industries (RIL) which reached a new all-time high, the stocks rallied by 3.59% to close at Rs 2,076 a piece. The oil-to-telcom conglomerate crossed the market capitalisation (m-cap) of Rs 13 lakh crore, eight sessions earlier, the stock had hit the m-cap of Rs 12 lakh crore. In its report, HSBC Global Research said, “With each of its businesses now capable of generating cash flows for themselves, we believe RIL will once again become a cash generating machine, thus allowing it to chart its next phase of growth.”
The foreign financial services firm has maintained a buy rating on RIL. Listed entities such as Axis Bank, HDFC Bank, Britannia Industries, HUL, among others, so far have reported better than expected results for Q1 which has helped improve the sentiment.
On Thursday’s weekly expiry, the futures and options segment witnessed strong volumes worth Rs 34.71 lakh crore against the six month average of Rs 14.49 lakh crore. Foreign portfolio investors have also turned into buyers in the last four trading sessions pumping in $839.08 million, which led to the net inflows for July becoming positive. So far, the inflows for the month stood at $68.81 million.
According to provisional data, FPIs on Thursday bought stocks worth $229 million. Flows from domestic institutional investors have tapered as they have sold stocks worth Rs 5,627.38 crore in July till date. Jefferies in its report said, “June was only the second month in the last six years to see a net outflow from local equity funds. July appears to be tracking June on flows. This can weigh down on markets especially as we expect $10 billion of paper supply especially in financials.”
Globally, stock markets in Europe were trading higher with bourses in France, UK, and Germany trading up by 0.06% to 0.35%. Additionally, Asian markets were down due to the rising US China tensions. Stock markets in China, Taiwan and South Korea were down by 0.24% to 0.56%. Dow Jones Mini Futures were down by 17 points.
The biggest gainers on Nifty were Eicher Motors, ICICI Bank, RIL, Tech Mahindra and SBI. The stock price of Eicher Motors rose by 4.87%. ICICI Bank and RIL were up by 3.59% each. Tech Mahindra and SBI rose by 3.47% and 3.26%. The biggest losers were Axis Bank, Shree Cement, Hindustan Unilever, TCS, and Infosys down by 3.7%, 1.9%, 1.43%, 0.76%, 0.72%. Sectorally, the biggest gainers were Pharma, Nifty Realty, Nifty Auto, Nifty PSU Bank, and Nifty Bank. Among broader markets, Nifty Midcap and Nifty Smallcap were down by 0.96% and 1.03%.