Sensex Gains for Fifth Day, Nifty Ends Above 8,800

The BSE benchmark Sensex jumped for the fifth straight day supported by gains in FMCG, auto and realty stocks.

 

The 50-share Nifty closed above its crucial psychological level of 8,800 led by gains in heavyweights like ITC, TCS, HDFC and HUL.

 

For the most part of the day the Sensex and Nifty traded on a firm note. However, in the last one hour of trade, traders were seen booking profits in banking, consumer durables and oil & gas stocks.

 

On the macro economic front, the government released wholesale inflation figures for the month of January. The wholesale price index fell for the second time in three months in January as oil prices slumped, bolstering prospects for further interest rate cuts by the central bank.

 

The wholesale price index (WPI) unexpectedly fell 0.39 per cent last month from the same period a year earlier, its biggest decline since June 2009, government data showed on Monday.

Meanwhile, the mid-cap and small-cap stocks fell prey to the selling pressure. The respective indices closed marginally lower.

 

Banking stocks were the worst hit in trades on Monday. The banking sub index on NSE, Bank Nifty slipped 1 per cent. Oil & gas and consumer durable stocks also witnessed some amount of selling pressure.

 

FMCG stocks reacted to the news that inflation fell in the month of January. ITC was the top gainer on the Nifty. The stock jumped 3 per cent to end at Rs 390. Another FMCG heavyweight Hindustan Unilever also jumped 1.6 per cent to close at Rs 907.

 

Tata Steel, NMDC, TCS, HDFC, Tata Motors, Cipla, Mahindra & Mahindra and NTPC also jumped 1-2 per cent each.

 

On the other hand, Sun Pharma was the top loser from the Nifty pack after the pharmaceutical company reported its third quarter numbers which came in below the Street estimates.

 

Axis Bank, Reliance Industries, ICICI Bank, IndusInd Bank, Hindalco and Maruti suzuki also ended lower.

 

The overall breadth on the BSE was negative as 1595 stocks declined while 1315 advanced.

 

The Sensex finally closed at 29,136, up 41 points and the 50-share Nifty advanced 4 points to settle at 8,809.

 

(With inputs from Reuters)