Sensex rises 117 points, metal, ADAG stocks shine
Markets ended the week on a positive note. The Sensex rose 286 points or 1.8% while the Nifty index advanced 112 points or 2.35% over the last five trading days.
Indian stocks closed higher Friday tracking positive global sentiments. The Sensex and Nifty gained over 0.7 per cent today on the back of a broad based rally. Five stocks- L&T, Tata Steel, ITC, Coal India and Bharti - contributed for nearly all the gains on the Sensex.
The Sensex rose 117 points to 16,154 while the broader Nifty index advanced 34.75 points to 4,866.
High beta metal and realty stocks led the rally today. The metal index on the Bombay Stock Exchange (BSE) jumped over 3% while realty stocks advanced over 2% gains. Among individual metal stocks, Tata Steel (7%) and JSPL (2.5%) saw big gains. India's biggest realty firm DLF (2.5%) also closed higher. Capital goods stocks like engineering major L&T (3.5%) and power stocks like PSU heavyweight NTPC (3%) also saw gains.
Energy stocks declined after brokerage firm Morgan Stanley downgraded its outlook on the sector. The brokerage firm downgraded Reliance Industries (fell 0.75%) but identified Cairn (2.5%) as the preferred pick in the oil & gas space.
Though RIL declined, stocks of Anil Ambani led ADAG stocks saw huge jump today. Reliance Mediaworks surged nearly 16% on the BSE. Reliance Power (7.66%), Reliance Communication (5.87%), Reliance Capital (6.73%) and Reliance Infra advanced (2%) also witnessed solid gains.
IT stocks, including Infosys that plunged over 8% yesterday, ended flat today.
In stocks moving on news flow, Coal India jumped over 5.5% on reports that the management has reached an agreement with workers for a 25% wage hike. This hike is lower than expectations and the management had already provisioned for it. DCB rose 0.75% after the company posted higher than expect profits in the third quarter. Sintex declined 0.6% on BSE after net profit plunged 27%.
On the Nifty, 34 of the 50 stocks closed higher. GAIL (down 3%) was the biggest loser. Bajaj Auto (down 3%), HCL Tech (down 2%), Maruti (down 1.75%), Sun Pharma (down 1.24%) and Hero MotoCorp (down 1%) were the big losers.
For the week, the Sensex rose 286 points or 1.8% while the Nifty index advanced 112 points or 2.35%. Reliance Power and Tata Steel emerged as the biggest gainers on the Nifty index for the week. Jaiprakash Associates, Reliance Communication and Sesa Goa also saw over 10% gains through the week.
Infosys that disappointed the Street with its revenue guidance was the biggest weekly Nifty loser. TCS and HCL followed.
Midcap gainers: Lanco (42%), Triveni (38%), RIIL (37%), Jai Corp (34%), Shree Renuka (29%)
Midcap Losers: IGL (9%), Coromandel International, Rei Agro
Global cues were supportive. Asian stocks ended higher on the back of a successful bond auction in Spain and Italy. European stocks opened flat but gained some traction as traded progressed.
Analysts said markets are unlikely to see big moves in the absence of major triggers. The industrial production data surprised yesterday (it bounced back in November after shrinking in October) but analysts said more confirmations were needed to say the worst was over for the economy. Headline inflation data will come next week and that will decide to a large extent if the central bank cuts rates.
"It is difficult to believe positive macro numbers unless they sustain. The next move will come only if some results surprise on the upside. Rate cuts are unlikely to happen soon. The upsides are capped," Ambareesh Baliga, Chief Operating Officer of Way2Wealth said.