Extending their gaining streak for the fourth straight session, Indian equity markets scaled fresh all time closing high levels, as exit polls predicted that the Modi-led NDA is set to cross the magic figure of 272 in the just-concluded elections. Hectic buying activity in blue-chip stocks during the session too drove the markets higher, with frontline gauges ending at their all time closing high levels of 23,850 (Sensex) and 7,100 (Nifty). Meanwhile, rally at Dalal Street also saw participation of broader indices, which traded in-line with larger peers, ending with profit of around one and a half percent.
At one point of time Sensex surpassed its crucial 24,000 mark, but profit booking dragged the market below that level. Some cautiousness too was witnessed in the markets on account of weak set of economic data. The Industrial production contracted for the second month running in March, while consumer inflation accelerated to a three-month high in April. IIP contacted 0.5% in March, compared with a 1.8% decline in February, while CPI inflation accelerated to 8.59% in April from 8.31% in March. But, overall sentiments remained up-beat on report that overseas investors put in Rs 1,200 crore into equities, taking their two-day investment tally to nearly Rs 2,500 crore ($420 million) in the last session.
On the global front, shares in Europe firmed up, tracking solid gains in US equities and driven by upbeat earnings from large corporate in the region. Moreover, the Asian markets ended mostly in the green as investors shrugged off tensions in Ukraine. Though, Chinese markets ended slightly lower after the nation’s Industrial Production fell to 8.7%, from 8.8% in the preceding month. Chinese Retail Sales too fell to an annual rate of 11.9% from 12.2% in the preceding month.
Back home, there was broad based buying witnessed in the markets and apart from the blue chips, the broader markets too participated strongly in the rally. Appreciation in Indian rupee too supported the sentiments. Meanwhile, stocks related to Capital goods counters edged higher on hopes that the growth focused BJP-led NDA would unveil infrastructure reforms that would ultimately lead to new order inflows. Additionally, stocks related to public sector oil marketing companies (OMCs) viz. BPCL, HPCL and IOC edged higher as diesel prices were on Monday hiked by Rs 1.09 a litre, excluding state levies.
The market breadth remained in favour of advances, as there were 1,623 shares on the gaining side against 1,268 shares on the losing side. Finally, the BSE Sensex surged by 320.23 points or 1.36%, to 23871.23, while the CNX Nifty gained 94.50 points or 1.35% to 7,108.75.
The top gainers on the Sensex were BHEL up by 10.25%, Hero MotoCorp up by 5.39%, ONGC up by 3.81%, Tata Power up by 3.62% and Wipro up by 3.36%. While Dr Reddys Lab down by 3.99%, Tata Motors down by 0.94%, Hindalco Inds down by 0.84%, HDFC Bank down by 0.60% and Sun Pharma down by 0.47% were the top losers in the index. On the BSE Sectoral front, Power up by 3.26%, Consumer Durables up by 2.92%, Oil & Gas up by 2.84%, IT up by 2.59% and Capital Goods up by 2.51% were the top gainers, while Healthcare down by 0.45% was the only loser in the space.
TECHNICAL PARAMETERS OF NIFTY:
RSI was at 76, MACD positive above signal line; India VIX was at 32~. Today, Nifty closed above all of its moving averages like 5DMA (6859), 20 DMA (6780), 50 DMA (6627), 200 DMA (6163) which all indicate that market is in strong bull run with huge fund flow from FIIs and Traders but investors need to book some partial profit at these levels as market has seen a huge run up in the short span of time.
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