Sensex at two-week high; capital goods stocks rise

Mumbai, August 6: A day after it gained over 150 points, a benchmark index of the Indian equity markets closed in the green and inched up to a nearly two-week high on Thursday. The 30-scrip sensitive index (Sensex) of the S&P Bombay Stock Exchange (BSE) closed the day’s trade 75 points up at more than 28,220 points.

The wider 50-scrip Nifty of the tiol Stock Exchange (NSE) also closed in the positive territory. It was up 20.70 points or 0.24 percent at 8,588.65 points. The S&P BSE Sensex, which opened at 28,291.88 points, closed at 28,298.13 points, up 75.05 points or 0.27 percent from the previous day’s close at 28,223.08 points.

The Sensex touched a high of 28,359.96 points and a low of 28,163.69 points in the intra-day trade.

According to alysts, Indian markets opened positively tracking the SGX Nifty and Wednesday’s data which showed healthy growth in services PMI (purchasing magers’ index). Sentiment was also helped by upbeat economic data from Chi.

Markets gained due to the positive response to the Reserve Bank of India (RBI) governor’s comments on the economy. Euphoria surrounding Cognizant’s quarterly results supported the rally across information technology (IT) stocks. “The markets made gains as majority of large cap companies have already come out with their quarterly numbers. Investors are awaiting the few that are left like Mahindra to come out with its quarterly numbers. There is a positive expectation of good results,” Alex Mathews, head research, Geojit BNP Paribas Fincial Services told IANS.

“Cues from European and Chinese markets were positive. Crude oil prices supported the markets. Foreign institutiol investors (FIIs) have been net-buyers in both cash and the futures segments.”

The FIIs were net buyers in the cash market segment on Wednesday. They bought shares worth Rs.447.90 crore. Gaurav Jain, director with Hem Securities, said the continued buying interest by foreign portfolio investors (FPIs) boosted investors confidence at D-Street. “Indices maintained positive trajectory throughout the day supported by banking and fincials, capital goods and select healthcare stocks,” Jain elaborated.

Sector-wise, healthy buying was observed in capital goods, consumer durables, healthcare, banking and automobile stocks. However, fast moving consumer goods (FMCG), metal and oil and gas sectors came under selling pressure. The S&P BSE capital goods index zoomed by 306.14 points, followed by consumer durables index which augmented by 213.21 points, healthcare index gained 198.56 points, banking index edged higher by 120.30 points and automobile index rose by 110.80 points.

The S&P BSE FMCG index receded by 93.05 points, metal index fell by 48.51 points and the oil and gas index was lower by 25.29 points. Major Sensex gainers during Thursday’s trade were Larsen and Toubro (L&T), up 2.74 percent at Rs.1,827.30; Dr.Reddy, up 1.79 percent at Rs.4,270.10; Tata Motors, up 1.63 percent at Rs.382.90; Lupin, up 1.37 percent at Rs.1,703.15; and Tata Consultancy Services (TCS), up 1.28 percent at Rs.2,574.30. The major Sensex losers were: ITC, down 1.70 percent at Rs.326.05; Coal India, down 1.59 percent at Rs.431.10, Reliance Industries, down 0.84 percent at Rs.979.40; Vedanta, down 0.78 percent at Rs.126.90; and NTPC, down 0.62 percent at Rs.135.65.

Among the Asian markets, Japan’s Nikkei was up 0.24 percent, while Hong Kong’s Hang Seng declined by 0.57 percent. Chi’s Shanghai Composite Index also was lower by 0.88 percent.

In Europe, the London FTSE 100 index inched up by 0.09 percent. Germany’s DAX Index and French CAC 40 also gained 0.20 percent and 0.37 percent, respectively, at the closing bell here.  (IANS)