Sensex ends in green after a 2-day fall, capital goods biggest gainers

Indian equity markets closed in the green on positive global cues. World shares rose toward six-year highs on Thursday after sentiment was boosted by a batch of strong US economic data.

While the BSE Sensex closed up 145 points higher at 20566, the Nifty ended 50 points higher at 6106. The market recorded the second highest turnover today.

With today’s gains, the BSE Sensex has gained 1.7 percent so far this week.

Today’s top Sensex gainers include Bhel ( up 3.1 percent), Tata Steel and Hindalco ( both up 2 percent.)

[caption id=“attachment_1168089” align=“alignleft” width=“380”]  Reuters[/caption]

BSE capitals goods index finished the day at the top of the sectoral pack with gains of nearly 2 percent; FMCG index closed flat.BSE auto ended 2 percent higher while BSE it ended 1.6 percent lower.

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Nifty ended the November series with loss of near 3 percent. Significant volatility was seen in the last week of the November series.

“Rollovers remain strong in the index indicating continuation of up-move. We are seeing very strong support for the Nifty at 5900-5950; caution advised below the same. Immediate range for Bank-Nifty is seen at 10400-11350 with buying on dips advised. Next month is expected to witness increased volatility owing to the election outcome. Though we remain positive for the medium term; hedging positions towards the event is advised,” saidSahaj Agrawal, Deputy Vice President- Derivatives Research, Kotak Securities.

Gautam Chhaochharia of UBS does not see FII money chasing Nifty in the coming days as cyclicals which appeared cheap after the recent rally are no longer attractive.

Referring to common belief that the market is expecting a BJP win in the coming election, he told CNBC-TV18 that if the “business-friendly party” delivers a positive surprise, then market can touch all-time high. There is a possibility of Nifty touching 6800 next year. But if the election results are not as expected, the reverse can also happen, he warned.

He advised investors not to buy at 6300 levels where risk of it going down remains.