The market bounced back amid consolidation on Friday, majorly supported by Europe and crude oil rally but the broader markets ended flat.
The 30-share BSE Sensex rose 94.65 points to 24717.99. The 50-share NSE Nifty managed to get back above 7500 mark after roller coaster ride, up 24.05 points to 7510.20. The market breadth remained weak as about 1459 shares declined against 1104 advancing shares on the BSE.
Experts remained bullish on market for the medium to long term but for near term, they expect some correction and consolidation.
The long only funds into India are still cautious but the tide is slowly beginning to turn encouraged by recent Budget, says Cameron Brandt of EPFR Global.
He expects India to do well this year in terms of fund flows on back of good tailwinds from cheaper oil, stable monetary policy, no negatives from global trade etc.
Market Expert, Ambareesh Baliga sees minor correction before Nifty touches 8000.
For the week, the Sensex and Nifty gained 0.3 percent each due to lack of major domestic and global cues.
European equities were trading higher today with investors cheering a rally in oil prices and digesting the aggressive easing measures the European Central Bank (ECB) announced on Thursday. France’s CAC and Germany’s DAX surged 3 percent each followed by Britain’s FTSE with 1.7 percent upside (at 16 hours IST).
Brent crude was on track for its third weekly gain today, supported by an optimistic report from the International Energy Agency and a weaker dollar, which makes fuel cheaper for importers using other currencies. US crude futures were trading at USD 38.82 a barrel, up 2.6 percent and Brent crude futures were at USD 40.85 a barrel, up 2 percent.
Meanwhile, the Lok Sabha today has passed Aadhaar Bill. MoS Finance, Jayant Sinha says Aadhaar will save at least 20 percent on subsidy bill.
Back home, Cairn India was biggest gainer on Nifty, up 4.5 percent on rally in oil prices. DLF gained half a percent after Rajya Sabha passed Realty Bill yesterday.
ITC was the leading contributor to Sensex’s gains, up 1.6 percent after Indian Panel recommended reducing cigarette pack warning size to 50 percent from 85 percent.
Tata Motors was up 1.6 percent. Its group global wholesales increased 17 percent in February to 99,842 vehicles compared to preceding month with JLR wholesales rising 15 percent to 52,313 units.
Dr Reddy’s Labs gained 0.9 percent on strategic collaboration with TR-Pharm in Turkey for biosimilar drugs.
Among others, Lupin, HUL and Adani Ports gained around 2 percent while ICICI Bank, Infosys, M&M, Coal India, ONGC and NTPC were down 0.3-1 percent.
In broader space, InterGlobe Aviation gained 2 percent as company accepted delivery of first Airbus A320 neo plane. With expected induction of 21 new A320 Neos aircrafts in its fleet over next 13 months are believed to burn 10-15 percent less fuel and this benefit will directly trickle down to the bottomline, says Aditya Ghosh, the company’s President.