SENSEX, NIFTY @ ANOTHER NEW PEAKS
Sensex and Nifty today hit new closing highs of 31,273 and 9,653, respectively on gains mainly in auto and pharma counters, helping the indices post fourth straight weekly gain ahead of the RBI policy next week. Also tracking upbeat Asian markets and a higher opening of European bourses, the 30-share BSE Sensex rallied 135.70 points and NSE Nifty closed 37.40 points higher. The Sensex resumed higher at 31,205.37 and hovered between all time high of 31,332.56 and 31,190.40 before closing at 31,273.29, showing a gain of 135.70 points, or 0.44 per cent. (It surpassed its last closing highs 31,159.40 on May 30). While, the gauge had lost 21.81 points in the previous two sessions. While the broader 50-scrip NSE Nifty after moving between 9,673.50 and 9,637.45, finished at 9,653.50, up 37.40 points, or 0.39 per cent. (Surpassing the previous 9,624.55, logged on May 30). The Reserve Bank is scheduled to hold its bi-monthly monetary policy meet on June 6 and 7 this month.
The key benchmark indices also mirrored global bullishness after overnight record closing on American bourses on positive US manufacturing and Employment data. Overseas, Asian market ended higher buoyed by overnight gains on Wall Street with solid assessment of the US manufacturing sector and release of the positive US monthly jobs report. Barring Shanghai Composite Index which declined 0.28 per cent, Nikkie Japan gained 1.74 per cent, South Korea up 1.16 per cent and Hong Kong ended by 0.32 per cent higher. European markets were also trading higher, with Dax Germany gaining 1.00 per cent, CAC Paris 0.79 per cent and London FTSE 0.47 per cent.
After a two-day brief consolidative pause, the market moved range-bound but near life highs during most of the session, with buying mostly in auto, healthcare, realty, consumer durables and telecom stocks. A persistent buying across-the-board also helped the indices record their fourth straight quarter gains.
- In the auto space, shares of country's largest two- wheeler maker Hero MotoCorp emerged the top gainer by climbing 2.82 per cent to Rs 3,840 apiece after the company posted a 8.7 per cent rise in sales in May.
- Pharma stocks contributed a big deal, with shares of Cipla, Dr Reddy, Lupin and Sun Pharma rising in the range of 1.24 per cent to 2.63 per cent.
- In the domestic market, Bharti Airtel rallied following merger approval with Telenor India by market regulator SEBI and stock exchanges.
"Auto stocks took the lead with positive sale figures in the month of May... Investors are accumulating pharma stocks on account of lower valuations and expectations of better trade relationship with European and Russian markets given Modi's recent visit... A positive momentum in markets was intact on expectation that the RBI is likely to be less hawkish in the monitory policy meeting next week on account of moderation in inflation and slow growth. The decline in crude prices is also helping this trend and markets continued its upward trajectory. Further strong May Auto sales figure continues to bring cheers to investor sentiments"
- Vinod Nair, Head of Research, Geojit Financial Services Ltd.