NIFTY OUTLOOK FOR 1st DEC & REVIEW

MID SESSION BETTER

 

Nifty                               8588  +94

 

Nifty opened with a huge gap following positive macro cues due to sharp fall in Crude Prices and closed with a gain of more than 1%. Bank stocks gained the most ahead of RBI policy next week. Further, Short term trend continues to remain positive  and stoploss  may be  raised to  8450 (on close basis).  Nifty spot is expected to encounter resistance at 8625,, 8660 and find support at 8545, 8510 for Monday.   While Global cues  and  Funds flow  are expected to broadly guide the market movement, based on the present market position, market is expected to experience volatile / zigzag movements with better midsession and possible profit booking towards close.

SENSEX VALUATION @ 100 TRILLION RUPEES

Stocks continued their upward sprint for the third straight session today with benchmark Sensex galloping 255.08 points to 28,693.99 and Nifty surging 94.05 points to 8,588.25 as tumbling oil prices strengthened the case for a rate cut by the RBI next week. Brent crude oil contracts for January settlement were trading around USD 72/barrel, the lowest level since August 2010. Falling oil price is good news for India, which imports 80 per cent of its requirements. This will also help the country narrow its Current Account Deficit. Stocks related to oil like oil marketing companies, airlines, paint makers attracted heavy buying interest. Shares of banks, automobile makers and realty firms spurted on rising hopes of a rate cut on December 2. Besides, select NBFCs saw heavy investor interest after RBI yesterday unveiled final guidelines for small finance banks and payments banks. All eyes are now on quarterly GDP data to be released later today. The BSE 30-share Sensex resumed better and shot up to log new life time high of 28,822.37. It shed some gains on weak European cues but nevertheless settled at yet another closing peak of 28,693.99, up 255.08 points or 0.90 per cent. In three days, the index has gained over 355 points. Similarly, the broader 50-issue NSE Nifty also flared up by 94.05 points, or 1.11 per cent, to register fresh closing peak of 8,588.25. It also hit new intra-trade peak of 8,617. "Sentiments were buoyed by OPEC's decision to sustain production levels and the subsequent sharp fall in crude prices. Markets are hoping for a rate cut in the RBI policy meeting next week," said Dipen Shah, Head of Private Client Group Research, Kotak Securities. Meanwhile, total investor wealth in Indian stock market intra-day today hit a record high above Rs 100 lakh crore. It settled at over Rs 99,81,550 crore at close, up by over Rs 87,550 crore from yesterday's levels.

Foreign Portfolio Investors (FPIs) bought shares worth a net Rs 389.73 crore yesterday, as per provisional data. Asian stocks closed mixed with upward bias. Key indices in China, Japan, Singapore and Taiwan ended positively while those from Hong Kong and South Korea settled slightly down. European markets, however, were trading lower in their late morning deals. The CAC was down by 0.38 per cent, the DAX by 0.35 per cent and the FTSE by 0.64 per cent. Jayant Manglik, President-retail distribution, Religare Securities said: "It was an exceptional end to the trading week as indices jumped by a per cent and closed at new highs. Next week will be interesting with participants reacting to the GDP numbers in early trades on Monday and that would determine the market direction...." Overall, 19 scrips of the 30-share Sensex pack concluded in the green while others finished in the red. SBI was the top gainer with a rise of 5.10 per cent, followed by Axis Bank 2.79 per cent, Tata Steel 2.78 per cent, Tata Motors 2.78 per cent, M&M 2.53 per cent, Maruti Suzuki 2.25 per cent, ICICI Bank 1.88 per cent, Coal India 1.59 per cent, L&T 1.28 per cent, Hero MotoCorp 1.18 per cent and HDFC Bank 1.03 per cent. Laggards were led by Sesa Sterlite which declined by 2.88 per cent, Bharti Airtel 1.01 per cent and ONGC 0.71 per cent. Among the S&P BSE sectoral indices, Bankex firmed up by 2.87 per cent, Auto 1.95 per cent, Realty 1.65 per cent, Consumer Durables 1.16 percent and Capital Goods 1.01 percent. Reflecting some weakness in small-cap shares, the total market breadth, despite smart rise in the Sensex, was almost stable as 1,509 stocks closed with gains while 1,518 finished with losses. Total turnover rose to Rs 3,834.96 crore from Rs 3,351.02 crore yesterday.
BSE listed firms' market value hits Rs 100-trillion mark
In a new milestone, the total market valuation of all listed firms at the BSE today hit a record high of Rs 100 trillion -- marking ten-times rise in Indian stock markets' investor wealth in little over a decade.
The landmark level was reached in early morning trade when the market capitalisation (m-cap) rose to Rs 100.01 lakh crore, but slipped marginally below this level at the close of trading hours.
At the end of the day, the total market value of all BSE listed companies stood at Rs 99,81,572 crore -- which was less than 0.2 per cent away from the Rs 100-trillion level, as benchmark Sensex continued its record rally with a gain of over 255 points.
BSE is among the world's ten largest exchanges in terms of market value, while it is the largest globally for number of firms listed on its platform. It has over 4,000 actively traded companies and nearly 2.7 crore investors trade on it.
Terming this milestone as a reflection of India's potential as a new age powerhouse, BSE CEO Ashishkumar Chauhan said, "We believe India will use capital market mechanism more over the period to help do wealth creation and job creation."
In the US dollar terms, the BSE market cap now stands at over USD 1.6 trillion and it has added more than USD 500 billion (Rs 29 lakh crore) this year itself.
The total market cap has more than doubled in the last five years from Rs 50 lakh crore in 2009, while it has grown ten-times since first scaling Rs 10 lakh crore level in 2003.
The Sensex has gained 7,268.23 points or 34.33 per cent so far this year. Continuing its dream-rally, the index hit its all-time high of 28,822.37 today.
The 30 Sensex companies alone, which are among the biggest companies in the country, now account for nearly 50 per cent or about Rs 47 lakh crore of total investor wealth.
This includes TCS, the country's most valued firm and the only entity to have a market value of over Rs 5 lakh crore, followed by state-run ONGC and private sector behemoth Reliance Industries with market caps of over Rs 3 lakh crore each.