Hopes of positive Q3 results, budget sops lift Nifty

Hopes of positive third quarter (Q3) results, along with expectations on more spending support from the upcoming Union Budget and a strengthened rupee lifted the key Indian equity markets to close at eight-week high levels on today.

Besides, the pre-budget rally was propelled by healthy buying in not just blue chip companies such as HDFC Bank, Tata Motors, Reliance Industries and ITC but also in mid- and small-cap stocks.

Sector-wise, automobile, capital goods, fertilisers, sugar and metal stocks were picked up by investors.

However, foreign fund outflows, subdued crude oil prices and broadly negative global indices capped gains.

The wider 51-scrip Nifty of the National Stock Exchange (NSE) edged up by 52.55 points or 0.64 per cent to 8,288.60 points.

The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 26,811.63 points, closed at 26,899.56 points — up 173.01 points or 0.65 per cent from the previous close at 26,726.55 points.

The Sensex touched a high of 26,914.95 points and a low of 26,804.17 points during the intra-day trade.

The BSE market breadth was tilted in favour of the bulls — with 1,653 advances and 1,165 declines.

On Monday, profit-booking, coupled with rupee depreciation subdued the Indian equities markets.

The NSE Nifty had inched down by 7.75 points or 0.09 per cent to 8,236.05 points, while BSE Sensex receded by 32.68 points or 0.12 per cent to 26,860.81 points.

“Lower level buying and some positive expectations from the upcoming Union Budget aided the equity markets’ rise in the day’s trade,” Anand James, Chief Market Strategist, Geojit BNP Paribas Financial Services, said.

“IndusInd bank’s Q3 results infused some positivity into the bank sector during the closing hours.”

The third quarter results are being eagerly awaited by the investors after the recently released data showing growth in tax collection has indicated towards better than expected earnings.

IT major TCS (Tata Consultancy Services) is expected to be the first blue chip firm to come out with its Q3 results on January 12, followed a day later by Infosys.

According to Dhruv Desai, Director and Chief Operating Officer of Tradebulls, today healthy buying was witnessed in the auto and auto ancillary sectors.

“Mid-cap stocks were a buzz with anticipation of sops being announced during the Union Budget,” Desai explained.

“Lack of selling pressure also helped markets scale to its eight week high level as the amount of selling that we saw in November and December by FIIs (foreign institutional investors) has diminished.”

In terms of investments, provisional data with exchanges showed that the FIIs sold stocks worth Rs 21.20 crore, whereas the domestic institutional investors (DIIs) purchased scrip worth Rs 253.36 crore.

In addition, the Indian rupee strengthened to 68.19 against a US dollar from its previous close of 68.21 to a greenback.

Only S&P BSE realty index dipped during today’s trade. It inched lower by 5.73 points.

On the other hand, S&P BSE automobile index surged by 264.24 points, followed by the capital goods index which rose by 143.90 points, and the metal index which edged up by 138.53 points.

Major Sensex gainers today were: Adani Ports, up 3.25 per cent at Rs 294.05; Tata Motors, up 2.99 per cent at Rs 515.30; Tata Steel, up 2.10 per cent at Rs 430.90; Asian Paints, up 1.54 per cent at Rs 924.35; and HDFC Bank, up 1.46 per cent at Rs 1,212.35.

Major Sensex losers were: Axis Bank, down 1.17 per cent at Rs 447.35; Dr.Reddy’s Laboratories, down 0.58 per cent at Rs 3,048.35; HDFC, down 0.47 per cent at Rs 1,216.45; NTPC, down 0.37 per cent at Rs 162.40; and Lupin, down 0.21 per cent at Rs 1,487.55.

Traded Value (Rs. In Crores)    17867.45
Traded Quantity (in Lakhs)    9112.65
Number of Trades    7465144
Total Market Capitalisation (Rs. Crores)    10719760

ADVANCES    976
DECLINES    636
UNCHANGED    85

In the cash segment FIIs were net sellers to the tune of Rs 21 crores and DIIs net buyers to the tune of  Rs 253 crores.

FIIs sold net 3102 contracts of index futures, bought net 3088 contracts of index calls and sold net 5685 contracts of index puts.

Now FIIs are holding net long 87801 contracts of index futures, net long 68294 contracts of index calls and net long 246370 contracts of index puts.

Retailers bought  net 7666 contracts of index futures, sold net 18944 contracts of index calls and bought net 19463 contracts of index puts.

Pros sold net 1896 contracts of index futures, bought net 15856 contracts of index calls and sold net 13778 contracts of index puts.

FII positions in Index puts, futures and calls.

Nifty Put Call Ratio (PCR) data shows support at 8200 and resistance at 8300

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