The benchmark BSE Sensex today rose by over 244 points to settle the day at 28,504.46, ahead of the RBI's monetary policy review tomorrow...
The benchmark BSE Sensex today rose by over 244 points to settle the day at 28,504.46, ahead of the RBI’s monetary policy review tomorrow, mainly driven by strong rally in healthcare and realty stocks.
Brokers said sustained buying by participants to enlarge their portfolios ahead of the RBI’s bi-monthly policy and appreciating rupee against the dollar buoyed the sentiment.
Market Outlook by Vinod Nair, Head-Fundamental Research, Geojit BNP Paribas Financial Services
Defensive stocks are moving ahead before the important policy meet tomorrow. As RBI is likely to hold rates, though there is scope to surprise the market through CRR/SLR and assessment of future outlook. A 25bps cut can be expected by June, as the recent inflation numbers does not favor for a rate cut now. Though RBI has brought down the base rate by 50bps since January, banks have largely refrained from passing the benefit to borrowers due to high NPA provisioning. A reduction in CRR will be a continuation of RBI’s effort to release more liquidity to persuade Banks to bring down lending rates. CRR at 4% is unchanged since 2013, while RBI had brought down SLR by 50bps in February’15. Importantly a possibility to change CRR is the near-term is very low. RBI will be very keen to understand the performance of NPA restructuring in Q4 before lowering the rate.
The 30-share BSE barometer commenced on a firm note but succumbed to profit-booking and slipped to intra-day’s low of 28,221.99. However, sustained buying in healthcare, realty and FMCG stocks helped Sensex to end the day at over two-week high of 28,504.46, a rise of 0.86 per cent or 244.32 points.
The Sensex had closed at 28,622.12 on March 18.
The 50-share NSE Nifty regained the crucial 8,600-mark and settled higher by 73.65 points or 0.86 per cent at 8,659.90.
Market Wrap Up by Alex Mathews, Head Research, Geojit BNP Paribas Financial Services
Markets remained subdued till noon; later selective buying in Pharma, Auto and FMCG sector stocks helped the markets to recover. Investors were keen on the outcome of RBI monetary policy which is scheduled tomorrow where majority believe the central bank may hold its key rates.
In the economic front, the country’s services data came out which slowed in March. The HSBC PMI data stood at 53 from 53.9 in the previous month. A level of 50 distinguishes between growth and contraction.
Nifty today closed at 8659 up around 73 points. The market breadth stood positive as there were seen 2000 stocks advancing against 699 stocks declining. The Nifty volatility index, India VIX stood at 14.5725 up around 6.64%. The mid-cap and small-cap sector ended up around 1.11% and 1.37% respectively.
Barring the metal and banking sector which closed down around 0.40% and 0.01% respectively, all other sectors ended in green. The major sectorial gainers for the day were realty and healthcare which closed up around 6.43% and 4.84% respectively.
In the stocks’ front, the major gainers were Sun Pharma and Dr Reddy which closed up around 8.95% and 4.55% respectively whereas the losers were PNB and Wipro which closed down around 2.04% and 2.03% respectively.
The FIIs were buyers in the cash markets segment, bought shares worth Rs 209.87 crore on Wednesday, 01 April 2015. On the other hand the DIIs were also net buyers on 01 April 2014, bought shares worth Rs 197.25 crore as per the provisional data from the stock exchanges.
The US index futures were trading lower.
In the earnings corner, GM Breweries may announce their earnings tomorrow.
Meanwhile, manufacturing sector activity in March rose amid stronger increase in new orders that led firms to boost production.
Sectorwise, the BSE Realty sector index gained the most by rising 6.43 per cent, followed by Healthcare (4.84 per cent), FMCG (2.35 per cent), Consumer Durables (2.06 per cent) and Capital Goods (1.40 per cent).
Smallcap index on the BSE Sensex ended 1.37 per cent higher, while midcap index gained 1.11 per cent.
Absence of cues from global markets which were closed for the Easter holiday also influenced the sentiments, traders said.
Meanwhile, provisional data showed that Foreign Portfolio Investors (FPIs) bought shares worth net Rs 209.87 crore, while Domestic Institutional Investors (DIIs) bought shares worth net Rs 197.25 crore last Wednesday.