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Indian shares post biggest single-day gain in nearly a month
Benchmark indices ended firm with Sensex closing above 21,000 mark led by buying in heavyweight sectors like oil & gas, banks and technology.
The market sentiment was also cheered by data showing that FIIs made substantial purchases of Indian stocks yesterday.
Foreign institutional investors bought shares worth a net Rs 2264.11 crore yesterday, as per provisional data from the stock exchanges.
Moreover, according to United Nations, the Indian economy is likely to witness an economic growth rate of 5.3% in 2014, while the global economic growth is estimated at 3%.
The outlook for the world represents a slight improvement compared to the expected growth of 2.1%.
Sensex & Nifty
The 30-share Sensex ended up 371 points at 21,080 after hitting an intra-day high of 21,118 and the 50-share Nifty ended up 108 points at 6,274 after touching an intra-day high of 6,285.
The broader markets performed well in line with the benchmark indices- BSE Midcap Index jumped 1.7% and Smallcap up 1.3%.
The market breadth in BSE ended firm with 1,523 shares advancing and 990 shares declining.
Market expert's view
Says Chetan Jain, Deputy Manager, Derivatives Desk, Anand Rathi, “Nifty is facing strong support around 6150-620 zone with major put writing seen at 6200 strike price. Now ahead of the expiry week volatility may be seen in coming days.
We advise to go for Bull Call Spread: Buy 6150 Call@38; Sell 6350 Call@8; Max Risk: 30 Max Reward: 70; BEP 6280; view: looking at the momentum and support based buying if market holds the 6250 zone then further short covering may be expected to give move of around 100 points.”
Global markets
Chinese stocks stumbled on Friday on concerns over a renewed cash crunch, while Asian shares crept higher as investors reassessed the Federal Reserve's policy outlook after it decided this week to start tapering stimulus.
The dollar climbed on the Fed tapering news to a more than five-year high against the yen, and stood tall against the euro and emerging currencies, while gold rebounded after earlier tumbling to a near six-month low.
China's benchmark money market rate climbed to a six-month high despite attempts by the People's Bank of China to calm sentiment, showing signs of a scramble for cash reminiscent of a massive crunch that occurred in June.
China's CSI300 stock index shed 2.2% after earlier hitting a four-month low, while shares of Hong Kong-listed Chinese companies sagged 1.7%.
Japan's Nikkei share average closed a choppy session at its highest level in six years on Friday, with traders citing futures buying by funds ahead of the long weekend for the rebound from morning losses.
Indian rupee
Rupee stayed weak against dollar as the market continued to adjust with the US Fed's decision to begin tapering from January 2014. At 3:40, it was trading at 62.13 against dollar.
Sectoral indices
The rally was largely supported by oil and gas sector. BSE Oil & Gas, Realty, Auto, Power, Bankex and IT surged between 1-2%. Sectors like Capital Goods, Meta, FMCG and Healthcare gained by 1% each. However, BSE Consumer Durables index declined over 1%.
Gainers and losers
The main gainers on the Sensex were RIL, ONGC, Wipro, M&M, HDFC, HUL, ICICI Bank, BHEL and Hero Moto, all gaining between 2-5%.
Reliance Industries ended higher by nearly 5% at Rs 894 on the BSE, after the Cabinet Committee on Economic Affairs allowed the company to double the price of gas produced from its KG-D6 block to $8.4 a million British thermal unit (mBtu) from April 1, 2014.
Maruti Suzuki India ended higher by 2%, extending its previous day’s 3% rally, on reports that the company’s foreign promoter is planning to increase its holding in the company.
IT stocks extended Thursday's gain after Accenture Plc on Thursday said at the time of announcing its Q1 November 2013 results that it expects its consulting business to turn the corner this financial year.
Shares of information technology (IT) companies mainly mid and small-sized were in demand with many of them trading at their 52-week highs on the Bombay Stock Exchange (BSE).
Tech Mahindra, MphasiS, Mastek, Mindtree, Hexaware Technologies, NIIT, Aptech, Info Edge India, Sonata Software and Sasken Communication Technologies ended higher by up to 20% on the BSE. Tata Consultancy Services (TCS), Infosys, HCL Technologies and Wipro from the large cap too, were up 1-4%.
Infosys is poised to overtake ITC Ltd as the stock with biggest weighting in the benchmark BSE Sensex and broader Nifty. Infosys' weighting in the BSE Sensex currently stands at 9.70%, only 15 basis points away from 9.85% for ITC, Thomson Reuters Data shows.
On the losing side, Sesa Sterlite, Sun Pharma and Jindal Steel declined between 0.5-1%.
Smart movers
BF Utilities was locked in upper circuit of 5% at Rs 493, extending its two-month long rally on the BSE, after the company has received Karnataka High Court’s (HC) clearance for Nandi Infrastructure Corridor Enterprises /Nandi Economic Corridor Enterprises (NICEL/NECEL) project.
Just Dial moved higher by nearly 5%, extending its over 10% rally in past three days on the BSE, ahead of its entry in the FTSE All Cap index from 23 December 2013.
Shares in Multi Commodity Exchange of India (MCX) surged over 10% on back of heavy volumes on the bourses.
Welspun Corp gained 4% on back of heavy volumes on the BSE after promoter bought more than 50,000 shares through open market.
