Positive global indices, rupee appreciation lift Nifty

Positive global indices, coupled with rupee appreciation and hopes of budgetary incentives, lifted the Indian equities markets today.

Besides, short-covering ahead of Futures and Options (F&O) expiry for the month of January series and inflow of foreign funds buoyed investors’ sentiments.

Healthy buying was witnessed in the automobile, metal and banking stocks which boosted the key indices to close with gains of around a per cent each.

The wider 51-scrip Nifty of the National Stock Exchange (NSE) rose by 84.30 points or 1.00 per cent, to 8,475.80 points.

The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 27,170.88 points, closed at 27,375.58 points — up 258.24 points or 0.95 per cent from the previous close at 27,117.34 points.

The Sensex touched a high of 27,393.35 points and a low of 27,140.85 points during the intra-day trade.

The BSE market breadth was tilted in favour of the bulls — with 1,593 advances and 1,150 declines.

In terms of the broader markets, the BSE mid-cap index rose by 0.96 per cent, while the BSE small-cap index was up 0.85 per cent.

On Monday, the NSE Nifty rose by 42.15 points or 0.50 per cent, to 8,391.50 points, while the BSE Sensex was up 82.84 points or 0.31 per cent.

According to Dhruv Desai, Director and Chief Operating Officer of Tradebulls, Indian shares rose for a second consecutive session as sentiments got a boost on optimism ahead of the annual budget to be unveiled next week.

“Almost all sectors, barring FMCG, traded in the green. HDFC Bank result set the bullish tone for banks, and Bank Nifty rallied and closed nearly 0.90 percent,” Desai said.

“European markets also traded in the positive territory which helped our market to take the buying momentum forward.”

Anand James, Chief Market Strategist, Geojit BNP Paribas Financial Services, said: “With only a day left before January derivatives expire, rollovers picked up, having been subdued until Monday.”

“Meanwhile, earnings positivity continued to edge stocks ahead, and investors were seen adding on to positions, with only a few days before the much anticipated budget is presented,” James added.

The Indian rupee strengthened by five paise to 68.15 against a US dollar from its previous close of 68.20 to a greenback.

The provisional data with exchanges showed that foreign institutional investors (FIIs) purchased stocks worth Rs 93.95 crore, while the domestic institutional investors (DIIs) bought scrip worth Rs 533.49 crore.

Sector-wise,the S&P BSE automobile index surged by 357.15 points, followed by the metal index, which increased by 193.35 points, and the banking index, which rose by 186.03 points.

On the other hand, the S&P BSE IT index fell by 17.33 points and the TECK (technology, media and entertainment) index inched down by 4.72 points.

Major Sensex gainers on Tuesday were: Bajaj Auto, up 3.28 per cent at Rs 2,796.10; Mahindra and Mahindra (M&M), up 2.68 per cent at Rs 1,219.95; Adani Ports, up 2.41 per cent at Rs 293.25.15; Coal India, up 1.96 per cent at Rs 309.50; and Larsen and Toubro (L&T), up 1.88 per cent at Rs 1,419.65.

Major Sensex losers were: Bharti Airtel, down 0.95 per cent at Rs 316.35; Infosys, down 0.70 per cent at Rs 945.10; Hindustan Unilever (HUL), down 0.27 per cent at Rs 860.95; and ICICI Bank, down 0.14 per cent at Rs 257.10.

Traded Value (Rs. In Crores)    19591.3
Traded Quantity (in Lakhs)    9308.07
Number of Trades    7981603
Total Market Capitalisation (Rs. Crores)    11000929

ADVANCES    1002
DECLINES    614
UNCHANGED    88

In the cash segment FIIs were net buyers to the tune of Rs 94 crores and DIIs net buyers to the tune of  Rs 533 crores.

FIIs bought net 5619 contracts of index futures, sold net 11237 contracts of index calls and bought net 10098 contracts of index puts.

Now FIIs are holding net long 114821 contracts of index futures, net long 63523 contracts of index calls and net long 253829 contracts of index puts.

Retailers sold net 15888 contracts of index futures, sold net 15950 contracts of index calls and bought net 34776 contracts of index puts.

Pros bought net 7942 contracts of index futures, bought net  27187 contracts of index calls and sold  44875 contracts of index puts.

FII positions in Index puts, futures and calls.

Nifty Put Call Ratio (PCR) data shows support at 8400 and resistance at 8500

(with agency inputs)