RIL, HDFC earnings helps Sensex close at 2-week high

Mumbai: The benchmark Sensex today gained over 73 points to close at two-week high level of 25,715.17 on sustained capital inflows and encouraging first quarter earnings from bluechips including RIL and HDFC.

The 30-share Sensex after rising to touch the day’s high of 25,861.15, slipped partially on profit-taking towards the fag-end but still ended in the positive terrain for the fifthstraight session. It gained 73.61 points, or 0.29 percent, at 25,715.17 – its highest closing since 26,100.08 (July 7).

In five days, the BSE index has now risen by 708 points.

On similar lines, the 50-share National Stock Exchange’s Nifty rose by 20.30 points, or 0.26 percent, to end at 7,683.20 after surging to 7,722.10 intra-day.

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Brokers said the market remained in bullish mood ever since the market leaders – Infosys and TCS –posted better earnings, which exceeded estimates.

Reliance Industries had on Saturday posted a 13.7 percent jump in its first quarter net profit to almost $1 billion. Shares of RIL, which has the second-highest weight in the Sensex, rose over 2 percent.

HDFC shares gained 3 percent after it poster higher consolidated profit. HDFC Bank scrip, however, slipped even as it reported 21 percent growth in June quarter profit.

Besides, improving macro-economic data amid government exuding confidence that tax collection in the current fiscal would exceed target of Rs 13.64 lakh crore, helped markets.

A firming trend at the other Asian markets further supported the uptrend, brokers added.

Axis Bank, ICICI Bank, Coal India, Dr Reddy, Hindustan Unilever, ITC Ltd, SunPharma, Mahindra and Mahindra, Maruti Suzuki and TCS were among the major Sensex gainers.

Meanwhile, Foreign portfolio investors (FPIs) bought shares worth a net Rs 574.47 crore on last Friday as per provisional data from the stock exchanges.

European markets were trading lower as investors weighed earnings reports and international tensions after reports of the downing of a passenger jet in Ukraine last week and Israel’s offensive in Gaza. Key indices in France, Germany and the UK moved down by 0.31 percent to 0.70 percent.

Jignesh Chaudhary, Head of Research, Veracity Broking Services said: “Indian equities opened positively and added over half percent during the day as bluechips traded higher with the help of FIIs. Now, traders are eagerly waiting for the RBI’s credit policy review scheduled next month.”

Thirteen scrips out of the 30-share Sensex pack ended higher while 17 scrips declined. In the 50-share Nifty, 24 stocks rose, one counter was flat while the rest ended down.

Major gainers from the Sensex were HDFC 2.61 percent, ITC 1.55 percent and Axis Bank 1.10 percent while Tata Power fell by 1.94 percent, Gail 1.86 percent, SBI 1.62 percent, BHEL 1.58 percent, Sterlite 1.39 percent, Infosys 1.27 percent, L&T 1.24 percent and ONGC 1.13 percent.

“Its normal to witness a pause post a series of up move; however, one should be cautious and keep the leveraged positions hedged. We believe sustainability above 7700 mark in Nifty would be decisive otherwise it’ll consolidate further around the current levels,” said Jayant Manglik,

President-retail distribution, Religare Securities. Among the S&P BSE sectoral indices, FMCG rose by 1.05 percent, Oil&Gas 0.60 percent while Capital Goods dropped by 0.78 percent.

The BSE Mid-cap and Small cap indices rose by 0.51 percent and 0.87 percent respectively on buying by retail investors.

Market breadth turned positive as 1,721 stocks ended higher, 1,244 stocks finished lower while 104 ruled steady.

The total turnover fell to Rs 2,899.45 crore from Rs 3,015.79 crore on last Friday.

PTI