Mumbai: After gyrating nearly 700 points Wednesday, benchmark equity indices reversed initial losses and ended higher, driven by a rebound in financial stocks amid firming trend in the US market
The BSE Sensex broke its three-day falling streak by ending 179.79 points, or 0.51%, higher at 35,649.94. Intra-day, the index fell to a low of 35,010.82
The broader NSE Nifty too recovered to reclaim the 10,700 level, rising 66.35 points, or 0.62%, to 10,729.85.
“Market recovered in the second half following a recovery in Dow futures. At current levels, Nifty 50 is on track to deliver nominal positive returns in CY18. Nifty is the only index among large markets that is positive for the calendar year,” said Viral Berawala, CIO of Essel Mutual Fund
The 30-share index had ended the previous session 271.92 points lower at 35,470.15, while the Nifty had lost 90.50 points.”Globally, investors would closely track political developments in
In the short term, liquidity and sentiment are set to drive the market,” Hemang Jani, Head – Advisory, Sharekhan by BNP Paribas, said. Nifty ended above 10,700 levels led by financials, FMCG stocks, he added
|Share||Currently priced at||Likely to go up to|
|Titan ||Rs 889||Rs 1,105|
|Indian Hotels||Rs 147||Rs 163|
|Marico||Rs 367||Rs 465|
|Oberoi Realty||Rs 446||Rs 574|
|ICICI Bank||Rs 356||Rs 400|
|Aurobindo Pharma||Rs 718||Rs 920|
|HUL||Rs 1,790||Rs 2,140|
|Crompton Greaves CE||Rs 226||Rs 260|
|Infosys||Rs 643||Rs 800|
|Larsen & Toubro||Rs 1,422||Rs 1,570|
|According to Motilal Oswal Financial Services|
On the other hand, Sun Pharma, Yes Bank, TCS, NTPC, Tata Motors, Infosys and ONGC fell up to 2%.The rupee, meanwhile, gained against the US dollar, and was trading at 70.08 per dollar.Brent crude, the international benchmark, was up 0.73% at USD 51.14 per barrel.
On a net basis, foreign portfolio investors (FPIs) sold shares worth Rs 577.10 crore Monday, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 186.14 crore, provisional data available with BSE showed.
Elsewhere in Asia, Korea’s Kospi ended 1.31% lower, Hong Kong’s Hang Seng fell 0.40% and Shanghai Composite Index slipped 0.26%; while, Japan’s Nikkei rose 0.89%.
Business World analyses the situation thus: “It appears that the financial markets have brushed aside the contentious divisions between the RBI and the government over issues such as the PCA and dividend payouts and chosen to drive on.
The new governor, Shaktikanta Das, has conveyed that matters would be resolved amicably. The hope is that all the deep divisiveness that threatened to steamroll the larger economic drive may now be kept on the back-burner.
Times Now (Hindi) says that the market expects the RBI governor to untangle the mess that is India’s banking system. The anticipation of a further ease for banks to lend to businesses is boosting the market sentiment.