Nifty closes higher on derivatives expiry day

On expiry of March 2017 series contracts in the futures and options (F&O) segment, healthy roll-overs were witnessed to April 2017 series, which uplifted investors’ sentiments.

Besides, the passage of the Goods and Services Tax Bill 2017 — a major tax reform in the country, continuous inflow of funds and healthy buying in consumer durables, banking and capital goods sectors aided the key indices to hold on to their gains.

The wider 51-scrip Nifty of the National Stock Exchange (NSE) was up 29.95 points or 0.33 per cent at 9,173.75 points.

The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 29,538.03 points, closed at 29,647.42 points — up 115.99 points or 0.39 per cent, from the previous close at 29,531.43 points.

The Sensex touched a high of 29,684.54 points and a low of 29,521.65 points during the intra-day trade.

The BSE market breadth was bullish — with 1,729 advances and 999 declines.

In terms of the broader markets, the S&P BSE mid-cap index was up 0.39 per cent and the small-cap index edged higher by 0.95 per cent.

“March derivative series rollover pulled up the market which already had favourable fundamental push behind it. Fund flows continued to be strong despite expectation that there could be withdrawal on account of the taxation treaty signed by the Indian government with Singapore and Mauritius,” Vijay Singhania, founder and Director of brokerage firm Trade Smart Online, said.

“Continuous inflow of foreign money has caused the rupee to strengthen. Rupee traded at 64.94, below the psychologically important 65-mark.”

On the currency front, the Indian rupee closed on a flat note at 64.92 against a US dollar from its previous close of 64.90-91 to a greenback.

The day witnessed substantial buying activities by the domestic institutional investors (DIIs). Provisional data with exchanges showed that DIIs bought scrip worth Rs 1,701.79 crore, while foreign institutional investors (FIIs) purchased stocks worth Rs 67.97 crore.

Anand James, Chief Market Strategist, Geojit Financial Services, said: “Banking stocks continued to outperform, with realty (stocks) also following suit on consideration of rationalisation of waiver of stamp duty for affordable housing projects.”

According to Dhruv Desai, Director and Chief Operating Officer of Tradebulls, the equity markets witnessed a firm trend throughout the session and bulls took good control of the benchmark CNX Nifty index mainly due to continuation of strong buying.

Commenting on sector-specific movement, Desai said: “IT sector stocks faced resistance at higher levels due to profit booking. Banking stocks remained volatile on higher levels profit booking.”

“Pharma, auto, textile, media-entertainment, aviation sector stocks and most FMCG sector stocks traded with firm sentiments.”

Sector-wise, the S&P BSE consumer durables index surged by 206.17 points, followed by the banking index, which rose by 199.08 points, and the capital goods index, which edged up by 89.02 points.

On the other hand, the S&P BSE metal index fell by 30.80 points, the IT index slipped by 23.50 points, and the Teck (technology, media and entertainment) index was a tad lower by 4.57 points.

Major Sensex gainers on Thursday were: Adani Ports, up 5.77 per cent at Rs 338.85; HDFC Bank, up 2.51 per cent at Rs 1,463.75; Bharti Airtel, up 1.67 per cent at Rs 350.65; Gail, up 1.27 per cent at Rs 378.45; and Reliance Industries, up 1.17 per cent at Rs 1,269.35.

Major Sensex losers were: ONGC, down 1.34 per cent at Rs 184.45; Coal India, down 1.33 per cent at Rs 290.15; Tata Steel, down 1.08 per cent at Rs 478.15; Axis Bank, down 0.97 per cent at Rs 499.05; and Infosys, down 0.66 per cent at Rs 1,024.50.

FIIs net buy Rs 67.97 Cr in equities and DIIs net buy Rs 1,701.79 Cr in equities.

Open Positions at the end of series

FII positions in Index puts, futures and calls.

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(With agency inputs)