Positive global cues lift Nifty to new 2017-closing highs

Indian equities markets today surged on the back of positive global cues, rupee appreciation and higher crude oil prices to hit a five-month closing high.

The key indices closed with appreciable gains of more than half a per cent each, even as some gains were capped due to profit booking and outflow of foreign funds.

The wider 51-scrip Nifty of the National Stock Exchange (NSE) inched up 60.10 points or 0.69 per cent to 8,801.05 points.

The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 28,340.39 points, closed at 28,439.28 points — up 198.76 points or 0.70 per cent, from the previous close at 28,240.52 points.

The Sensex touched a high of 28,487.28 points and a low of 28,340.39 points during intra-day trade.

The BSE market breadth was tilted in favour of the bulls — with 1,847 advances and 1,065 declines.

In terms of broader markets, the BSE mid-cap index rose by 1.10 per cent, while the BSE small-cap index was up 0.88 per cent.

On last Friday, the benchmark indices closed on a flat note as profit booking subdued investors’ sentiments.

The NSE Nifty had inched up 6.70 points or 0.08 per cent to close at 8,740.95 points, while the BSE Sensex was up 13.91 points or 0.05 per cent at 28,240.52 points.

“Markets began the week on a positive note as they surged higher today after two sessions of consolidation. Both the Nifty and the Sensex closed at new 2017 highs,” Deepak Jasani, Head – Retail Research, HDFC Securities, told IANS.

“Global markets aided the domestic rally as the major Asian markets have ended higher. European indices like FTSE 100, CAC 40 and DAX too traded higher.”

According to Vijay Singhania, founder and Director of Trade Smart Online brokerage firm, banking stocks traded marginally higher just ahead of the monetary policy of the Reserve Bank of India (RBI).

“Economists and analysts expect the central bank to reduce interest rates by 25 basis points,” Singhania explained.

The RBI is expected to conduct its sixth and final bi-monthly monetary policy review of tghe current fiscal on February 7-8, 2017.

The country’s apex bank had maintained a status quo in its key lending rates during its last policy review held in December 2016. The repo rate that time was left unchanged at 6.25 per cent.

“Rupee, meanwhile, continued to remain strong against the US dollar, as traders awaited the RBI policy before taking position on currency trade,” Singhania said.

The Indian rupee strengthened by 10 paise to 67.22 against a US dollar from its previous close of 67.32 to a greenback.

The provisional data with exchanges showed that foreign institutional investors (FIIs) sold stocks worth Rs 403.52 crore, while the domestic institutional investors (DIIs) purchased scrip worth Rs 449.52 crore.

Dhruv Desai, Director and Chief Operating Officer of Tradebulls, said: “Banking, pharma, auto, oil-gas, textile and FMCG stocks traded with firm sentiments, whereas aviation and media-entertainment stocks witnessed volatile price movement due to profit booking.”

“Cement and power stocks traded with firm sentiments, while most paper and sugar sector stocks witnessed good buying sentiments in the intra-day session.”

Sector-wise, all the sub-indices of the S&P BSE ended in the green, except the metal index — which edged down by 35.95 points.

The S&P BSE banking index augmented by 216.43 points, followed by the healthcare index, which increased by 194.48 points, and the consumer durables index, which edged up by 163.60 points.

Major Sensex gainers today were: Sun Pharma, up 4.20 per cent at Rs 674.30; ICICI Bank, up 3.18 per cent at Rs 290.35; Adani Ports, up 1.99 per cent at Rs 309.60; Axis Bank, up 1.49 per cent at Rs 496.95; and Hero MotoCorp, up 1.46 per cent at Rs 3,262.80.

Major Sensex losers were: Dr Reddy’s Lab, down 1.49 per cent at Rs 3,094.80; Cipla, down 1.13 per cent at Rs 601.45; ONGC, down 0.97 per cent at Rs 199; Bajaj Auto, down 0.40 per cent at Rs 2,798.60; and Coal India, down 0.34 per cent at Rs 324.95.

In the cash segment FIIs were net sellers to the tune of Rs 404 crores and DIIs net buyers to the tune of  Rs  449 crores.

FII positions in Index puts, futures and calls.

Nifty Put Call Ratio (PCR) data shows support at 8700 and resistance at 8900