Sensex up 200 points, Midcap index up 1%; NTPC rises 5%

Benchmark indices continue to hold on to their gains led by strong buying among index heavyweights like ITC, Tata Motors and bank shares.  

At 11:35AM, the 30-share Sensex was up 202 points at 28,861 and the 50-share Nifty was up 61 points at 8,761.

However, the broader markets are outperforming the benchmark indices- BSE Midcap and Smallcap indices are up over 1% each.

Market breadth is strong with 1,511 gainers and 876 losers on the BSE.

Adds Ravi Nathani, Director, Nathani Investments, “Nifty index has bounced sharply from the 50 Days EMA 8,677.00, close below this level would attract fresh round of short selling whereas next support / target expected would be 8,610 & 8,450 (100 Days EMA), whereas resistance on the higher side is at 8,800. As short term trend is bullish on charts therefore best trading strategy for swing traders would be buy on dips with a strict stoploss of 8677 whereas target expected is around 8,800 & 8,900.”

Investors would keenly await data on industrial production for January and consumer price index for February scheduled to be announced today after market hours besides keeping a tab on development regarding coal and mines related Bills and insurance amendment bills sent by the government to the Rajya Sabha.

According to Moody’s Analytics, a research arm of the Moody’s group, IIP for the month of January is expected to grow at 2%, marginally higher than 1.7% in December. But according to a Reuters poll of 24 economists, industrial output is expected to slow down to 0.65%.

Further, India’s economy is recovering and its ability to withstand external shocks has improved, but growth is likely to fall short of government targets, the International Monetary Fund said on Wednesday.

In an annual report, the IMF forecast that Asia’s third-largest economy would grow by 7.5% in the 2015/16 fiscal year that starts on April 1, up from 7.2 percent in the year now ending.

Meanwhile, foreign institutional investors were net sellers in equities to the tune of Rs 445 crore while Domestic institutional investors were also net sellers to the tune of Rs 339 crore, as per provisional stock exchange data.

In the currency front, rupee rises to 62.6750/dollar vs 62.78/79 close on media reports of hike in foreign investment debt limit.

ASIAN MARKETS

A surprise interest rate cut by South Korea’s central bank on Thursday helped lift an index of Asian stocks away from the previous session’s seven-week lows, while the prospect of higher US interest rates buoyed the dollar.

The Bank of Korea’s monetary policy committee cut its base rate by 25 basis points to a record low of 1.75%, its first cut in five months. It joined its counterparts in other countries which have recently taken advantage of lower inflation to ease monetary policy to spur sluggish growth.

MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.3%, moving away from Wednesday’s seven-week lows. The Korea Composite Stock Price Index (KOSPI) added 0.4%.

Japan’s Nikkei extended early gains and rose 0.9%, bolstered by hopes of buying from public investors such as the government’s pension fund.

SECTORS & STOCKS

BSE Power index has surged over 2% followed by counters like Auto, Consumer Durables, Capital Goods, FMCG and Metal, all gaining over 1% each. Infact, all the major BSE sectoral indices are trading in positive zone.

NTPC is the top Sensex gainer, up over 5%. Other notables leaders are Tata Steel, BHEL, Tata Motors, ITC, Sesa Sterlite and Maruti Suzuki.

FMCG major ITC was up almost 2% amid media reports that the company would hike cigarette prices on select brands by 10-25%.

Maruti Suzuki is up over 1.5%. The company said it would be recalling 33,098 vehicles, including its popular models Alto 800 and Alto K10. According to the company’s statement to the stock exchanges, the recall is to inspect and replace the ‘right hand door latch assembly.

Tata Motors has gained over 2% after the industry body SIAM said that the industry likely to see demand revival for passenger and utility vehicle.

Companies such as SBI and ICICI Bank are up 0.5-1% which have insurance subsidiaries on expectations that the insurance amendment Bill would be passed by the Rajya Sabha later today.

Hindalco has rebounded after the sharp fall on Wednesday following a scrutiny over the coal block allocations. The stock is up 1.5%.

On the losing side, HUL, M&M, Dr Reddy’s Labs, Wipro and Bajaj Auto have slipped nearly 1% each.

Nifty Futures

niftyfutures.org@imediaone.com

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