The market continued its buoyant mood on Tuesday as benchmark indices ended rangebound session at new closing high. The midcaps, however, snapped a four-day winning streak as investors await corporate earnings.
The 30-share BSE Sensex was up 90.40 points at 34,443.19 and the 50-share NSE Nifty rose 13.40 points to 10,637, tracking positive global cues.
The momentum suggests that the market may be pricing in likely recovery in corporate earnings for December quarter. Union Budget, which will be presented on February 1, will also be closely watched, say experts.
“Attention is now getting focused towards the Budget, which could be a macro event and guide future market direction,” Nikhil Kamath, co-founder and Head of Trading, Zerodha said.
He remains neutral on the markets and would not recommend entering fresh positions at this juncture.
The broader markets failed to continue its uptrend for fifth consecutive session today as the Nifty Midcap closed lower by 0.12 percent on weak breadth. About three shares declined for every two shares rising on the BSE.
Sectoral indices ended on a mixed note as Nifty Bank, FMCG and IT were mildly higher whereas Auto, Pharma and PSU Bank lost 0.3-0.7 percent. Realty gained the most, rising nearly 3 percent.
Coal India was the biggest gainer among Nifty50 stocks, climbing nearly 6 percent on revision in non-coking coal prices that will add around Rs 1,956 crore to its revenue for FY18.
Index heavyweights Reliance Industries (up 1.34 percent), ITC (1.86 percent) and Infosys (0.51 percent) continued to support the market today as well.
IOC, Tata Motors and Wipro were other gainers with 1-2 percent upside whereas Eicher Motors, Bajaj Finance, Bharti Airtel, Hindalco, Zee Entertainment and HPCL lost 1-2 percent.
Bharti Infratel was down 1.6 percent. Despite the 22 percent decline in last two months, HDFC Securities reiterated its sell rating on the stock with revised target price at Rs 310 (from Rs 387 earlier), citing instant loss of tenancies on merger of Vodafone-Idea Cellular, and impact of Reliance Communications and Aircel businesses’ scaling down.
ICICI Lombard General Insurance lost 7 percent. Macquarie has initiated coverage on the stock with Underperform rating and target price at Rs 565 (which is far lower than current share price) as the business is suffering from underwriting losses despite several catalysts for growth.
Jaiprakash Associates was down 7 percent as the Reserve Bank of India has sought Supreme Court nod to initiate insolvency proceedings against the company. Jaypee Infratech also fell 5.5 percent and Jaiprakash Power Ventures was down 3 percent.
NMDC slipped 4.5 percent as the government set floor price for offer for sale (OFS) at Rs 153.5 per share, lower than Monday’s closing price of Rs 161.85. The offer for sale issue will remain open till Wednesday.
Coffee Day Enterprises and Quick Heal Technologies saw monster rally today, rising 20 percent and 17 percent, respectively.
Reliance Power, Reliance Communications, Peninsula Land, GMR Infrastructure, Jet Airways, IFCI and Wockhardt among others slipped 3-7 percent whereas Indiabulls Real Estate, Prakash Industries, PC Jeweller, J Kumar Infra, NCC, Suzlon, HEG and Gujarat Alkalies gained 3-8 percent.
On the global front, European markets were higher as investors reacted to better-than-expected economic data and shrugged off a tech wobble in Asia. France CAC, Germany DAX and Britain FTSE were up 0.2-0.5 percent at the time of filing this piece. Asian stocks also extended gains today as Japan’s Nikkei was at 26-year high, rising 0.6 percent at close.