Easing inflation, Q3 earnings optimism lift Nifty50 to 10,700-mark

Market, Profit booking, equities, BSE, NSE, sensexMumbai : Domestic macro-economic data indicating easing inflation, coupled with an optimism surrounding quarterly corporate earnings, pushed the key Indian equity indices to record high levels, with the NSE Nifty50 index crossing the 10,700-mark for the first time.

The Sensex and the Nifty50 touched fresh closing as well as intra-day highs as investors’ sentiments were lifted by positive Asian cues, along with a strong rupee and healthy buying in banking, consumer durables and finance stocks, added market observers.

The wider Nifty50 of the National Stock Exchange (NSE) scaled a new intra-day high level of 10,782.65 points.

The Nifty50 rose by 60.30 points or 0.56 per cent to close at a fresh level of 10,741.55 points.

On the BSE, the barometer 30-scrip Sensitive Index (Sensex) surged over 300 points to touch a new high of 34,963.69 points on an intra-day basis.

The Sensex closed at a record high of 34,843.51 points — up 251.12 points or 0.73 per cent — from its previous session’s close.

The BSE market breadth remained bullish as 1,547 stocks advanced as compared to 1,387 declines.

“Markets surged higher on Monday with the Nifty touching a new record high of 10,783. Selling pressure, however, emerged from these highs which saw the Nifty losing some of its morning gains,” Deepak Jasani, Head – Retail Research, HDFC Securities, told IANS.

“Both the Sensex and the Nifty hit record highs on intra-day as well as closing basis. Major Asian markets have closed on a positive note, barring the Shanghai and Hang Seng indices, while the European indices like FTSE 100, DAX and CAC 40 traded in the red,” Jasani said.

In the broader markets, the S&P BSE mid-cap index closed a tad lower by 0.04 per cent, while the small-cap index closed higher by 0.27 per cent.

Vinod Nair, Head of Research, Geojit Financial Services, said: “Market rallied to a new high in line with the start of third quarter earnings season and ease in WPI (Wholesale Price Index) inflation to 3.58 per cent despite rise in CPI (Consumer Price Index) inflation supported the sentiment.”

Official data released during the market hours showed that lower food prices pulled India’s annual rate of inflation based on wholesale prices to a three-month low of 3.58 per cent in December from 3.93 per cent in November.

“Bank Nifty led from the front owing to encouraging growth in industrial activity which raised the expectation for credit cycle improvement, while healthy domestic liquidity and strong rupee kept the direction intact,” Nair added.

On the currency front, the Indian rupee strengthened by 14 paise to close at 63.49 against the US dollar from its previous close at 63.63.

Sectorwise, the S&P BSE banking index surged by 364.85 points, followed by consumer durables index by 268.24 points and finance index by 96.89 points.

On the other hand, the S&P BSE auto index slipped by 235.20 points, oil and gas index by 114.15 points and capital goods index by 64.32 points.

Major Sensex gainers on Monday were: HDFC, up 6.17 per cent at Rs 1,869.95; ICICI Bank, up 3.73 per cent at Rs 329.45; Kotak Bank, up 1.94 per cent at Rs 1,039.15; Tata Steel, up 1.58 per cent at Rs 783.20; and HDFC Bank, up 1.55 per cent at Rs 1,894.65.

Major Sensex losers were: Tata Motors (DVR), down 2.50 per cent at Rs 246.20; ONGC, down 1.85 per cent at Rs 196.55; Hero MotoCorp, down 1.57 per cent at Rs 3,627.75; IndusInd Bank, down 1.41 per cent at Rs 1,681.50; and Yes Bank, down 1.38 per cent at Rs 335.95.


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