News Column

Indian stocks' dream run continues

August 27, 2014

PTI



Mumbai: Indian markets continued their record-setting spree with Sensex on Wednesday jumping over 117 points to settle at new closing peak of 26,560.15 and Nifty rising 31 points to closing high of 7,936.05 on hopes of a fresh eurozone stimulus and as investors cheered upbeat US Data.



The Sensex, which rose for the fifth straight day, has closed at a new peak in each of last three sessions. Brokers said trading activity also picked up pace ahead of the expiry of monthly equity derivatives on Thursday.



Defence stocks were in the limelight and rose by up to 20 per cent on Wednesday after government notified increase in FDI limit to 49 per cent through approval route in the sector. The benchmark S&P BSE 30-share Sensex resumed on strong footing and traded in a range between 26,599.12 and 26,492.50 before registering its fresh closing high of 26,560.15, a net rise of 117.34 points or 0.44 per cent. It surpassed its previous closing peak of 26,442.81 logged on Tuesday.



The 50-issue CNX Nifty of the NSE also opened higher and moved in a tight range of 30 points before ending up by 31.30 points or 0.40 per cent at 7,936.05 new closing peak. Its previous peak on closing basis was 7,913.20 (August 22).



Select shares from refinery, auto, IT, consumer durables, banking and FMCG segments were in demand. Realty, power and metal sectors attracted profit-booking. "Positive global cues and likelihood for further monetary stimulus from European Central Bank (ECB) boosted the market sentiment...stocks from oil & gas sector also gained on hopes of proper reforms for subsidies," said Nidhi Saraswat, senior research analyst, Bonanza Portfolio.



Sentiments remained upbeat after Oil Ministry said it will seek Cabinet nod for freeing diesel prices after retail rates achieve parity with global levels, and has proposed to cut subsidy payout by upstream firms like ONGC and Oil India by half, said Jayant Manglik, President-retail distribution, Religare Securities.



Most Asian indices rose tracking United States stocks that jumped anew on Tuesday after data showed consumer confidence rose in August for a fourth straight month, to its strongest level since February 2008. Also, durable goods orders surged in July to a new monthly record.



Europe was under pressure with the FTSE (UK) mildly up as "Ukraine issue was in focus", said Kiran Kumar Kavikondala, director and chief executive officer of WealthRays Securities.



Rupee softens

The Indian rupee on Wednesday edged two paise lower and ended at 60.45, near its four-week high levels, against the Greenback on dollar demand from importers. However, bullish local equities, sustained capital inflows and a weak dollar overseas helped check the rupee fall, a forex dealer said.



At the Interbank Foreign Exchange (Forex) market, the domestic unit commenced weak at 60.47 a dollar from previous close of 60.43. It moved in a tight range of 60.3925 and 60.51 before concluding at 60.45, logging a small loss of two paise or 0.03 per cent.



On Tuesday, it had risen 13 paise or 0.21 per cent to end at 60.43 its best closing since July 30, 2014. Renewed dollar demand from importers, mainly oil refiners, to meet their month-end obligations weighed on the rupee value.




For more stories on investments and markets, please see HispanicBusiness' Finance Channel



Source: Times of Oman


Story Tools






HispanicBusiness.com Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters