Nifty surges on positive global cues, healthy Q3 results

Positive global cues, coupled with healthy third quarter (Q3) results pushed the Indian equities higher  today.

Besides, higher global crude oil prices and anticipation of sops to be announced during the Union Budget enhanced investors’ risk-taking appetite.

However, foreign fund outflows, rupee depreciation and caution ahead of major macro-economic data announcements capped gains.

The wider 51-scrip Nifty of the National Stock Exchange (NSE) edged up by 92.05 points or 1.11 per cent to 8,380.65 points.

The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 26,978.44 points, closed at 27,140.41 points — up 240.85 points or 0.90 per cent from the previous close at 26,899.56 points.

The Sensex touched a high of 27,174.87 points and a low of 26,978.44 points during the intra-day trade.

The BSE market breadth was tilted in favour of the bulls — with 1,726 advances and 1,079 declines.

On Tuesday, the Indian equities markets surged on the back of expectations on more spending support from the upcoming Union Budget and a strengthened rupee.

The NSE Nifty rose by 52.55 points or 0.64 per cent to 8,288.60 points, while BSE Sensex surged by up 173.01 points or 0.65 per cent.

“The equities markets closed above their eight-week highs as positive global cues in anticipation of a stimulus announcement from (Donald) Trump buoyed investors’ sentiments,” Dhruv Desai, Director and Chief Operating Officer of Tradebulls, said.

According to Desai, because of demonetisation effect, expectation of sops/benefits from the government in the forthcoming Union Budget is making the market cheerful.

“The global rating agency Moody has maintained positive outlook on India, saying demonetisation may have short-term impact on growth,” Desai added.

“Global markets too are not witnessing any selling and so lack of FII (foreign institutional investors) selling plus expectation from budget and better than expected result from companies are lifting the stocks in our market.”

In terms of investments, provisional data with exchanges showed that the FIIs sold stocks worth Rs 627.30 crore, whereas the domestic institutional investors (DIIs) purchased scrip worth Rs 1,116.15 crore.

However, caution prevailed a day ahead of the release of the Index of Industrial Production (IIP) and Consumer Price Index (CPI) data for December by India’s Central Statistics Office (CSO).

The CPI data will be followed by the release of Wholesale Price Index (WPI) by the Ministry of Commerce and Industry.

In addition, the Indian rupee lost its value on domestic bourses during the day’s trade. It weakened by 14 paise to 68.33 against a US dollar from its previous close of 68.19 to a greenback.

“Weak triggers came from firm overseas dollar as broadly dollar witnessed buying against major pairs ahead of a news conference by the US President-elect Donald Trump in which he is expected to spell out more about his plans for the economy,” SMC Global Securities said.

“Moreover, from the domestic front higher crude oil prices and news of lower expectation of GDP data are weighing on the rupee.”

Sector-wise, all the 19 sub-indices of the BSE ended in the green, except the IT index, which slipped by 1.78 points.

The S&P BSE banking index augmented by 505.72 points, the metal index rose by 475.38 points and the automobile index edged up by 202.20 points.

Major Sensex gainers today were: Coal India, up 5.41 per cent at Rs 316.65; Tata Steel, up 3.99 per cent at Rs 448.10; Lupin, up 2.20 per cent at Rs 1520.30; Larsen and Toubro (L&T), up 1.91 per cent at Rs 1,412.80; and ICICI Bank, up 1.79 per cent at Rs 264.95.

Major Sensex losers were: Bajaj Auto, down 0.85 per cent at Rs 2,717.55; ITC, down 0.56 per cent at Rs 247.50; Reliance Industries, down 0.28 per cent at Rs 1,084.10; ONGC, down 0.18 per cent at Rs 197.55; and Infosys, down 0.16 per cent at Rs 969.

Traded Value (Rs. In Crores)    21562.17
Traded Quantity (in Lakhs)    11047.28
Number of Trades    8536513
Total Market Capitalisation (Rs. Crores)    10836775

ADVANCES    1085
DECLINES    546
UNCHANGED    81

In the cash segment FIIs were net sellers to the tune of Rs 627 crores and DIIs net buyers to the tune of  Rs 1116 crores.

Today FIIs bought net 12089 contracts of index futures, bought net 18928 contracts of index calls and sold net 5250 contracts of index puts.

Now FIIs are holding net long 99890 contracts of index futures, net long 87222 contracts of index calls and net long 241120 contracts of index puts.

Retailers sold  net 3525 contracts of index futures, sold net 31399 contracts of index calls and bought net 51679 contracts of index puts.

Pros sold net 8231 contracts of index futures, bought net 12471 contracts of index calls and sold net 46429 contracts of index puts.

FII positions in Index puts, futures and calls.

Nifty Put Call Ratio (PCR) data shows support at 8300 and resistance at 8400

(With agency inputs)