Markets gain for second day, Nifty closes above 8,600 on reforms hope

Mumbai: The benchmark Sensex today rose for the second day, jumping 178.35 points to 28,533.97 and the Nifty index regained 8,600-mark on hopes of acceleration in economic reforms after BJP was trounced by AAP in Delhi polls.

Extending previous session’s recovery, the domestic markets witnessed positive start on Wednesday, tracking firm global cues and consolidated thereafter till the end.

Shares of capital goods, metal, power and banking sectors were the major gainers of the day. Small-cap and Mid-cap indices also shot up by 1.47 percent and 1.55 percent.

Investors are keenly focused on the the new government’s first full-year budget, looking at it as a gauge to measure the government’s reform momentum.

“The upcoming Budget could be the most important one for the stock market after the early 1990s, when India launched economic liberalization,” said Morgan Stanley in a report.

The BSE Sensex resumed higher at 28,450.26 and hovered in a range of 28,618.91 and 28,424.39 before ending at 28,533.97, showing a net gain of 178.35 points or 0.63 percent. In two days, it has now gained 306.58 points or 1.09 percent.

“The upside remained capped as participants preferred to maintain cautious view ahead of crucial macro-economic data release of IIP and CPI inflation.

“Interestingly, all the sectoral indices participated in the move and ended in green, which aided market breadth to close strongly on the advancing side,” said Religare Securities, President-retail distribution, Jayant Manglik.

Similarly, the CNX 50-share of the Nifty also rose by 61.85 points or 0.72 percent to end at 8,627.40.

Asian stocks ended higher today after a firmer finish of US stocks yesterday. Key indices in China, Singapore, Taiwan and South Korea firmed up by 0.30 per cent to 0.51 percent while Hong Kong’s Hang Seng fell 0.88 percent. The Japanese market remained closed today for a holiday.

US stocks rose yesterday buoyed by hopes for a deal between Greece and its international creditors.

European stocks were trading lower in their afternoon trade as investors awaited developments on the Greek debt front. Key indices in France, Germany and the UK moved down by 0.09 percent to 0.52 percent.

Meanwhile, Foreign Portfolio Investors sold shares worth a net Rs 1261.19 crore yesterday as per provisional data. Domestic Institutional Investors (DIIs) bought shares worth a net Rs 851.32 crore.

Veracity Broking Services, Head of Research, Jignesh Chaudhary said: “The clear mandate given by the voters of Delhi in favour of AAP party is seen as a signal to the NDA government to push reforms especially in the budget. Optimism over the upcoming Budget also influenced trading.”

As many as 21 scrips out of the 30-share Sensex constituents ended higher while only nine finished lower.

Major Sensex gainers include Axis Bank 2.87 percent, L&T 2.57 percent, Maruti Suzuki 2.10 percent, Tata Steel 2.08 percent, Reliance Industries 2.07 percent, NTPC 1.97 percent, HUL 1.47 percent, Hero MotoCorp 1.17 percent, Bajaj Auto 1.12 percent and ICICI Bank 1.10 percent.

Laggards include ONGC that dropped by 2.63 percent, BHEL 2.41 percent, Tata Motors 0.90 percent and M&M 0.81 percent.

Among BSE sectoral indices, Capital Goods rose by 2 percent, Metal 1.68 percent, Healthcare 1.25 percent, Power 1.16 percent, Bankex 1.05 percent, FMCG 0.85 percent, Oil&Gas 0.82 percent, Auto 0.80 percent and Realty 0.75 percent.

The total market breadth turned positive as 1,728 stocks ended in green, 1,074 finished in green while 106 ruled steady. The total turnover dropped to Rs 3,269.77 crore from Rs 3,883.69 crore yesterday.

PTI