Equity benchmarks closed off day’s high amid volatility on first day of the week, tracking positive global cues. FMCG, oil, metals and select banks stocks helped the market while HDFC group stocks limited upside.
The 30-share BSE Sensex rose 86.29 points to 24804.28. The 50-share NSE Nifty failed to hold 7550 level in trade today, up 28.55 points to 7538.75 at close. The broader markets also ended higher with the BSE Midcap and Smallcap indices rising 0.3-0.4 percent.
Experts still believe that the market is likely to underperform for some more time, though recently it recovered sharply.
Despite the recent rally in the market, fortunes have not turned in favour of the bulls, though fears about global recession have abated a bit, says Andrew Holland, CEO of Ambit Investment Advisors. “At the moment, we are seeing a rebound as we had corrected sharply earlier,” he explains.
Sakthi Siva of Credit Suisse believes there is more room for underperformance, as investors have been ‘hiding’ in India.
Globally markets extended gains from the last week post announcement of fresh stimulus measures from the European Central Bank. European equities were higher as investors looked ahead to a raft of central bank meetings and rate decisions this week. Germany’s DAX gained 1.6 percent followed by Britain’s FTSE and France’s CAC with half a percent upside. Asian markets also closed higher with Nikkei and Shanghai rising 1.7 percent each. Hang Seng climbed over a percent.
Meanwhile, WPI inflation in February was unchanged at negative 0.9 percent compared to preceding month.
Coal India was the top loser on Sensex & Nifty, down 7 percent after it adjusted for interim dividend of Rs 27.4 apiece.
ICICI Bank and Tata Motors continued to be leading gainers on Sensex, up 3.7 percent and 3.4 percent respectively, followed by ONGC, BHEL and Hindalco with more than 1.5 percent upside.
ITC, Axis Bank, SBI, Reliance Industries and Bharti Airtel gained 0.3-0.9 percent while TCS, HDFC, M&M and Sun Pharma fell 0.2-0.9 percent.
In broader space, Sasken Communication rallied 20 percent on settlement with Chinese company UniSpreadtrum for use of company’s Protocol Stack IP. MIC Electronics surged 18 percent as the company-led consortium bagged Rs 2,000 crore order from RailTel Corporation.