Hopes of healthy Q3 results, strong rupee lift equities

Mumbai, Jan 16: The Indian equities markets on Monday closed on a flat-to-positive note as hopes of healthy third-quarter (Q3) results and a strengthened rupee buoyed investors’ sentiments. Besides, positive macro-economic data points like last month’s Wholesale Price Index and exports figures for December aided the equity markets’ northward movement. However, weak global indices, along with caution ahead of the GST Council meet and foreign fund outflows, capped gains.

The wider 51-scrip Nifty of the tiol Stock Exchange (NSE) rose by 12.45 points or 0.15 per cent, to 8,412.80 points. The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 27,238.35 points, closed at 27,288.17 points — up 50.11 points or 0.18 per cent from the previous close at 27,238.06 points.

The Sensex touched a high of 27,335.08 points and a low of 27,172.68 points during the intra-day trade. The BSE market breadth was tilted in favour of the bulls — with 1,549 advances and 1,224 declines. In terms of broader markets, the mid-cap and small-cap stocks outperformed the benchmark indices. The BSE mid-cap index edged up by 0.27 per cent, while the BSE small-cap index was up 0.57 per cent. On Friday, profit booking, coupled with a depreciating rupee and disappointing earnings guidance from an IT major, dragged the benchmark indices lower.

The NSE Nifty shed 6.85 points or 0.08 per cent to 8,400.35 points, while the BSE Sensex down 9.10 points or 0.03 per cent. “Markets ended nomilly higher on Monday after a shaky opening,” Deepak Jasani, Head - Retail Research, HDFC Securities, told IANS. “The gains came despite weak Asian and European markets.”

According to Dhruv Desai, Director and Chief Operating Officer of Tradebulls, better-than-expected quarterly results along with lack of selling pressure pushed the equity markets higher.

“Global credit agency Moody is confident of Indian government achieving fiscal deficit of 3.5 per cent of GDP. This is positive for our market and economy,” Desai added. Moreover, the Indian rupee strengthened by six paise to 68.10 against a US dollar from its Friday’s close of 68.16 to a greenback. In terms of investments, provisiol data with exchanges showed that the foreign institutiol investors (FIIs) sold stocks worth Rs 347.25 crore, while the domestic institutiol investors (DIIs) purchased scrip worth Rs 203.45 crore.

Sector-wise, the S&P BSE banking index surged by 211.43 points, followed by the automobile index, which rose by 118.72 points, and the consumer durables index, which edged up by 118.71 points. On the other hand, the S&P BSE IT index receded by 101.390 points, the oil and gas index fell by 47.39 points and the TECK (technology, media and entertainment) index edged down by 43.96 points.

Major Sensex gainers on Monday were: Tata Steel, up 2.69 per cent at Rs 458.40; Tata Motors, up 2.31 per cent at Rs 526.55; Adani Ports, up 2.11 per cent at Rs 299.85; State Bank of India (SBI), up 1.93 per cent at Rs 255.75; and Hero MotoCorp, up 1.54 per cent at Rs 3,091.40. Major Sensex losers were: Infosys, down 1.99 per cent at Rs 955.70; ONGC, down 1.32 per cent at Rs 198.35; Reliance Industries, down 1.21 per cent at Rs 1,077; Sun Pharma, down 1.17 per cent at Rs 643.60; and Gail, down 0.92 per cent at Rs 448. (IANS)