Nifty rises on positive global cues, strong rupee

Indian equity markets extended gains for the second consecutive trade session today following positive global cues, a strong rupee and inflow of funds.

The key indices closed with gains of close to half a per cent each, as healthy buying was witnessed in banking, capital goods and consumer durables stocks.

Besides, the market sentiments were lifted as Finance Minister Arun Jaitley moved the Central Goods and Services Tax (CGST) Bill, 2017, along with three other GST Bills for consideration of and passage by the Lok Sabha.

However, with the near month March 2017 derivatives contract expiry on Thursday, some caution prevailed in the equity markets.

The wider 51-scrip Nifty of the National Stock Exchange (NSE) retained its stay in the 9,100-plus region and rose by 43 points or 0.47 per cent to 9,143.80 points.

The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 29,463.01 points, closed at 29,531.43 points — up 121.91 points or 0.41 per cent, from the previous close at 29,409.52 points.

The Sensex touched a high of 29,535.04 points and a low of 29,439.42 points during the intra-day trade.

In contrast, the BSE market breadth was bearish — with 1,188 advances and 1,666 declines.

The broader markets underperformed the benchmark indices. The S&P BSE mid-cap index was up 0.14 per cent and the small-cap index edged higher by 0.31 per cent.

“Markets ended higher today for the second consecutive session. Positive US consumer confidence data rekindled optimism across Asian markets,” Deepak Jasani, Head – Retail Research, HDFC Securities, said.

“Major Asian markets have ended on a positive note barring the Shanghai and Taiwan indices. European indices like CAC 40 and DAX too traded higher.”

According to Vijay Singhania, founder and Director of brokerage firm Trade Smart Online, the equity markets were range bound a day before the roll-over of the derivative segment.

“The highlight for the day was an all-time high of the NSE Bank Nifty which touched the previous day high of 21,336 and closed the day at 21,391, its highest level ever,” Singhania asserted.

“The automobile sector was in for a shock after the Supreme Court banned vehicles which did not meet the BS III (Bharat Stage emission III) standards. The industry is expected to take a hit of around Rs 30,000 crore on account of the judgement.”

On the currency front, the Indian rupee strengthened by 14-15 paise to 64.90-91 against a US dollar from its previous close of 65.04 on Monday. It had, during early morning trade, broke the 65-mark and touched a 17-month high since October 2015.

The day witnessed substantial buying activities by the domestic institutional investors (DIIs). Provisional data with exchanges showed that DIIs bought scrip worth Rs 1,283.03 crore, while foreign institutional investors (FIIs) purchased stocks worth Rs 460.98 crore.

Commenting on sector-specific movement, Dhruv Desai, Director and Chief Operating Officer of Tradebulls, said: “Pharma sector stocks witnessed profit booking at higher levels. Cement and power sector stocks witnessed strong up-move while mixed trade was seen in auto sector stocks.”

Sector-wise, the S&P BSE consumer durables index surged by 189.55 points, followed by the banking index, which rose by 188.89 points, and the capital goods index, which edged up by 123.36 points.

On the other hand, the S&P BSE automobile index plunged by 107.81 points, the healthcare index fell by 77.49 points, and the realty index was a tad lower by 8.97 points.

Major Sensex gainers on Wednesday were: State Bank of India (SBI), up 1.98 per cent at Rs 287.75; ICICI Bank, up 1.81 per cent at Rs 281.95; Bharti Airtel, up 1.25 per cent at Rs 344.90; Hindustan Unilever, up 1.07 per cent at Rs 912.20; and Coal India, up 1.07 per cent at Rs 294.05.

Major Sensex losers were: Hero MotoCorp, down 3.15 per cent at Rs 3,223.25; Sun Pharma, down 1.42 per cent at Rs 688.60; Tata Motors, down 0.70 per cent at Rs 469.10; Mahindra and Mahindra (M&M), down 0.66 per cent at Rs 1,268.20; and Maruti Suzuki, down 0.58 per cent at Rs 5,941.

FIIs net buy Rs 460.98 Cr in equities and DIIs net buy 1,283.03 Cr in equities.

FII positions in Index puts, futures and calls.

Nifty Put Call Ratio (PCR) data shows support at 9100 and resistance at 9200

(With agency inputs)