Foreign institutional investors have been extremely bullish on India, guiding indices to new highs almost everyday. However, analysts have advised caution as the market is trading at stretched valuations.
The 30-share pack Sensex rose 9.71 points or 0.02 per cent to 46,263.17. The index climbed over 400 points from the day’s low. NSE Nifty followed a similar trajectory and ended up 9.70 points or 0.07 per cent to 13,567.85.
Market at a glance:
- Majesco gains about 1% after announcing divided of Rs 974 per share
- IPO Watch: Mrs Bectors Food sails through; subscribed 3 times
- Burger King locked at 20 per cent upper circuit on its second day on bourses
- Bajaj Finance surges nearly 5%, becomes Rs 3 lakh crore firm
- 276 stocks hit 52-week highs: Titan, Tata Power, Kotak Mahindra Bank, Havells, GMR Infra, Voltas top names
“The Indian market opened with a negative trend, following weak sentiments in Asian markets, but a strong recovery happened as the European market opened positively ahead of Fed and ECB policy meetings. The outcome of these meetings are expected to be positive, triggering further positivity in the market,” said Vinod Nair, Head of Research at Geojit Financial Services.
Among bluechip names, Bajaj Finance was the biggest gainer, up 5.13 per cent to Rs 5,150. Bajaj Finserv, Eicher Motors, JSW Steel, Shree Cements, HDFC, Tech Mahindra, Adani Ports and UltraTech Cement were other major gainers.
“We reiterate our view to focus more on the selection of stocks and limiting leveraged positions. Also, keep a close eye on global markets for cues”
Hindustan Unilever was the top loser in Nifty index, down 2.07 per cent to Rs 2,321.60. Nestle India, BPCL, ICICI Bank, Axis Bank, SBI, TCS, ITC, ONGC and Cipla were other top losers in the pack.
Broader market indices registered modest gains and outperformed their headline peers. Nifty Smallcap added 0.19 per cent and Nifty Midcap advanced 0.47 per cent. Nifty 500, the broadest index on NSE, rose 0.08 per cent.
KEI Industries, JB Chemicals and Pharmaceuticals, Welspun Corp, Zee Entertainment, GMR Infra and Crompton Greaves Consumer Electricals were top gainers from mid and smallcap indices adding 4-8 per cent.
Canara Bank, Edelweiss Financial Services, Prestige Estate Projects, Indian Bank, CSB Bank and Tinken India were major losers from broader market space, falling in the range of 2-5 per cent.
Sectoral matrix was mixed on NSE. Nifty Media was the top gainer, followed by Nifty Metal, Nifty Financial Service and Nifty Auto. On the other hand, Nifty PSU Bank fell the most, trailed by Nifty FMCG and Nifty Realty.
“Most of the sectoral indices are showing signs of fatigue following strong price gains over the past several weeks. While the overall trajectory continues to be bullish, a minor, short-term correction seems overdue before the next up-leg commences,” said Abhishek Chinchalkar, CMT Charterholder and Head of Education, FYERS.
