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Firm global cues propel Sensex 350 points higher; Nifty tops 12,200

BSE Midcap & BSE Smallcap indices dropped 0.21 per cent and 0.11 per cent, respectively.

, ETMarkets.com|
Last Updated: Feb 12, 2020, 04.24 PM IST
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PTI
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The market rally was polarized in favour of a few stocks, as the breadth was negative. Losers beat gainers in the ratio of 8:5 on the BSE.
Benchmark equity indices ended on a firm note on Wednesday, mirroring strong cues from global peers. An upbeat commentary from Finance Minister Nirmala Sitharaman also boosted investor sentiment.

Sitharaman said the economy was set to turn around, citing seven “green shoots,” including higher foreign direct investment and goods and services tax (GST) collections.

“It’s not in trouble — I am giving you green shoots,” Sitharaman said in the Lok Sabha, strongly defending the government’s management of the economy and the budget.

The 30-share Sensex rose 0.85 per cent or 350 points to close at 41,566, while the 50-share Nifty climbed 0.77 per cent or 93 points to settle at 12,201.

However, the market rally was polarized in favour of a few stocks, as the breadth was negative. Losers beat gainers in the ratio of 8:5 on the BSE.

Market at a glance
The BSE Midcap and BSE Smallcap indices dropped 0.21 per cent and 0.11 per cent respectively.

Among sectoral indices, BSE FMCG index and BSE IT index led the gainers, as they rose 1.99 per cent and 0.97 per cent respectively.

As many as 24 of 30 Sensex stocks closed higher. FMCG major Hindustan Unilever (HUL) contributed the most to Sensex’s gains as it jumped over 5 per cent. Private sector lenders ICICI Bank, Kotak Bank and HDFC Bank and oil-to-telecom conglomerate Reliance Industries were other major contributors.

SBI was the biggest loser. HUL, Kotak Bank, Nestle and ICICI Bank were the top gainers.

Private lender IndusInd Bank dropped 1.24 per cent as Moody’s downgraded its ratings outlook.

Among off the main-board stocks, Vodafone Idea tanked 7.39 per cent ahead of the telecom major’s third-quarter earnings announcement.

HEG plunged 12.52 per cent after the graphite electrode maker reported a consolidated net loss of Rs 1.23 crore for the quarter ended December, compared to a profit of Rs 865.45 crore in the same quarter a year ago.

Analysts’ views:
“The market will react to macroeconomic data -- IIP data and CPI inflation numbers -- in early trade on Thursday. Indications are in the favour of upmove, but participation would remain restricted, so traders should plan their positions accordingly and prefer private banking, financials, FMCG and IT for fresh buying,” - Ajit Mishra, VP - Research, Religare Broking

"Nifty tested 11,600-11,650 zone recently, and is now in an uptrend. We expect 12,450-12,500 to be conquered in the near term. Buying on dips is advisable with immediate support at 12,000-12,050. Expect movement to be gradual as no change was seen in Call open interest. FMCG and select banking space remained positive, while the broader market continued to consolidate," - Sahaj Agrawal, Head of Research- Derivatives, Kotak Securities.

Global markets
Global share markets nudged higher amid hopes the worst of the coronavirus in China may have passed, although prevailing uncertainty about the outbreak kept investors wary, Reuters reported.

MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.9 per cent while Chinese shares reversed early losses to trade up 0.41 per cent. The pan-European STOXX 600 index rose as much as 0.2 per cent to a second consecutive record high of 429.42.
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