Millennium Post

Stock markets’ CAD party continues as Sensex, Nifty soar to fresh records

The aggressive buying by Foreign institutional investors (FIIs), showing faith on Indian economy compared to other many emerging markets, mainly continued to keep the market mood buoyant as they bought shares worth Rs 1,272.93 crore on Thursday as per provisional data. The BSE 30-share indicator resumed better and gradually improved further to a lifetime intra-day high of 21,960.89 before settling at 21,919.79, exhibiting a sharp rise of 405.92 points or 1.89 pct. During the week, the sensex has zoomed by nearly 800 points or 3.79 per cent.

Fall in current account deficit (CAD), which is gradually coming under control, amid easing inflation showed that economy is bottoming out and also the direction of the opinion polls that indicates the NDA led by BJP coming into power with its prime ministerial candidate Narendra Modi which is more pro-business, also added fuel to the fire.

Although the market spurted to a new highs, overall market breadth was negative as small-cap and mid-cap stocks attracted profit-booking and showed that in this rally retail participation is lacking behind. Realty, banking, capital goods, refinery, power and metal counters were in keen demand.

The NSE 50-issue CNX Nifty also flared up by 125.50 points or 1.96 per cent to end at a new high of 6,526.65.  Jignesh Chaudhary, Head Of Research, Veracity Broking Services said,’ Indian equity markets on a roll and is aiming to reach newer highs in the next few trading sessions before the general elections. Markets on Friday traded strong throughout the day due to hectic buying by FIIs, who have shown tremendous faith in Indian markets which was not expected of them before the general elections.’

‘The deferment of military conflict in the Eastern European region has given a reasonable cheer to the European and other global markets, which also had a positive effect in the Indian institutional buyers and this coupled with opinion polls predicting a good performance by BJP led NDA in the upcoming to be held general elections has pushed the markets to trade at an all time high and consolidate their position there.’ he added.

Asian shares closed mixed with downward bias ahead of the US non-farm payrolls report later for confirmation of US employment data.

Key indices from China, Hong Kong and South Korea closed down while from Japan and Singapore finished up. Taiwan index closed almost unchanged. European markets, however, were trading lower. The CAC was down by 0.29 per cent, the DAX by 1.00 per cent and the FTSE by 0.54 per cent. Back home, 22 scrips out of 30-share sensex ended higher while remaining eight closed lower.

Major gainers from the Sensex were Bhel 6.31 per cent, ICICI Bank 5.97 per cent, Axis Bank 5.92 per cent, RIL 5.72 per cent, Bharti Airtel 5.46 per cent, HDFC Bank 5.31 per cent, Maruti Suzuki 5.21 per cent, L&T 4.86 per cent, SBI 4.60 per cent, Hindalco 3.53 per cent, Coal India 2.94 per cent, M&M 2.67 per cent, ONGC 2.09 per cent, Tata Steel 1.66 per cent, HDFC 1.36 per cent and Gail India 1.09 per cent.

However, Dr Reddy's Lab dropped by 3.59 per cent, Wipro 3.25 per cent, Infosys 2.47 per cent and Sun Pharma 1.43 per cent.
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