Sensex closes 317 points higher, Nifty gains 81 points ahead of RBI board meet outcome
The Sensex and Nifty closed higher in trade today as investors widened their portfolios ahead of the RBI's board meet outcome amid high foreign fund inflows. While the Sensex rose 317 points to a fresh six-week high of 35,774, Nifty gained 81 points to 10,763. YES Bank (7.19%), ITC (2.77%) and Tata Motors (2.73%) were the top Sensex gainers.
ONGC (1.37%) , ICICI Bank (1.33%) and SBI (0.72%) were the top Sensex losers.
Market breadth was marginally positive with 1327 stocks closing higher compared to 1275 ending lower on the BSE.
The BSE mid cap index rose 0.35% to 15049 level. Small cap index gained 0.365 to 14,538 level.
BSE auto index (1.05%), bankex (0.28%), and capital goods (0.94%) indices led the gains in trade today.
VK Sharma, Head PCG & Capital Markets Group at HDFC Securities said, " Crucial RBI board meeting is underway today where contentious issues like relaxing norms for PSU banks in PCA and transfer of RBI's reserves are being discussed. Government wants to ease liquidity in the system to be able to meet adequate loan demand to bolster growth and encourage job creation. There are hopes that both find a middle ground and resolves the issues amicably.
Indian markets opened cheerfully and mange to sustain and build on its gains throughout the day. Nifty crossed its recent top and more importantly its 200 day moving average hurdle today. FMCG stocks led by ITC outperformed the markets. ITC is looking at portfolio expansion in its food division to achieve the vision of the company of achieving Rs 1 lakh crore revenues from FMCG segment.
Banking sector will continue to hog limelight this holiday shortened week. Nifty will attempt to take out 10800 barrier on the higher side while support for the index comes in at 10500 level."
Banking stocks closed higher amid an ongoing crucial meet of the Reserve Bank's central board.
Bank Nifty too gained 55 points to 26,300 level.
"The major thing to look out from the meeting is if they come out with any respite for non-banking financial companies' liquidity situation," said Saurabh Jain, assistant vice-president-research at SMC Global Securities.
Also, one would look at how many banks can come out from the prompt corrective action as per government's wishes and what RBI can do towards that, apart from the issue of surplus reserves held by the central bank, he added. "Markets have also gained ground on stability in oil prices and negativity coming from institutional selling looks to be over as they are moving to the buy side," Jain said.
Meanwhile, foreign institutional investors (FIIs) bought shares worth a net of Rs 844.82 crore on Friday, while domestic institutional investors (DIIs) sold shares worth a net of Rs 372.24 crore, provisional data showed.
France's CAC 40 added 0.4 percent to 5,047.56 in early trading, while Germany's DAX was at 11,383.30, up 0.4 percent. Britain's FTSE100 added 0.4 percent to 7,042.59. U.S. shares were set to drift lower with Dow futures up less than 0.1 percent to 25,461. S&P 500 futures added 0.1 percent to 2,745.00.
Japan's benchmark Nikkei 225 rose 0.7 percent to finish at 21,821.16 and Hong Kong's Hang Seng added 0.7 percent to 26,372.00. The Shanghai Composite index added 0.9 percent to 2,703.51 and India's Sensex climbed 0.6 percent to 35,666.25. South Korea's Kospi gained 0.4 percent to 2,100.06. Australia's S&P/ASX 200 fell 0.6 percent to 5,693.70. Shares in Southeast Asia were mixed.