Moneycontrol
Jul 23, 2013 06:12 PM IST | Source: Moneycontrol.com

Sensex soars 143 pts; HUL, BoB, Kotak Mahindra Bank up 3-5%

Dhiren Sarin, Technical Analyst, Barclays is bullish on the Nifty and sees it gaining 5 percent in next few days. "We can be modestly bullish, but we can't be aggressively bullish until that 6400 area gives way," he says.

Sensex soars 143 pts; HUL, BoB, Kotak Mahindra Bank up 3-5%

Moneycontrol Bureau


After closing on a flat note for the last two sessions, the key benchmarks on Tuesday rose more than 0.7 percent, tracking strength in major Asian markets.


The BSE Sensex rose 143.01 points to close at 20302.13, but the broader markets were flat.


The NSE Nifty gained 46 points to finish at 6077.80 after witnessing volatility ahead of July expiry on Thursday.


Dhiren Sarin, Technical Analyst, Barclays is bullish on the Nifty and sees it gaining 5 percent in next few days. "We can be modestly bullish, but we can't be aggressively bullish until that 6400 area gives way," he says.


However, fundamental analyst Vibhav Kapoor of IL&FS feels the market is likely to correct as he expects more disappointing news coming from Q1 earnings ahead. Although rupee depreciation has benefited the Nifty and some of the heavy weight stocks and sectors, it has not really helped the broader market or the economy as a whole, he adds.


He sees Nifty trading in a range of 5,500-5,600 on lower side and 6,100-6,200 on the upper side. The best way to play the market is be selective and just trade, he advises.


FMCG and banks led the major support today while telecom stocks were under pressure.


BSE FMCG Index rose 1.5 percent as Hindustan Unilever surged over 3 percent and ITC gained nearly 2 percent.


Country’s largest lenders State Bank of India and ICICI Bank rallied 1.5-2 percent while Kotak Mahindra Bank and Bank of Baroda soared 4-5 percent.


YES Bank shares gained 3.5 percent ahead of Q1 earnings on Wednesday. Analysts on an average expect the private sector lender to report 39 percent growth year-on-year in net interest income at Rs 658 crore and 32 percent growth in profit after tax at Rs 382 crore.


State-run capital goods major BHEL bounced back with 2 percent gains after a 15 percent fall witnessed in previous two sessions on orderbook concerns. Its rival Larsen & Toubro closed flat.


Meanwhile, telecom majors lost ground today. Reliance Communications, Idea Cellular and Bharti Airtel were down 1.8-2.9 percent.


Wipro and Asian Paints (post Q1 earnings) were top losers among Nifty 50 stocks, falling 2-2.7 percent.


L&T Finance Holdings shares were flat despite the company reported 20 percent year-on-year rise in its first quarter (April-June) consolidated net profit at Rs 145 crore driven by a combination of reasons: retail credit expansions, spike in other income and tax refund.


Century Textiles, Dewan Housing Finance Corporation and Tata Elxsi gained 1-4 percent after strong results in first quarter.


Ambuja Cements, Cairn India, Hero MotoCorp, Central Ban of India and United Phosphorous will announce their April-June quarter earnings on Wednesday.


Jewellery stocks gained despite the Reserve Bank of India put further curbs on gold import mandating that banks and nominated agencies should retain 20 percent (or one fifth) of every lot of gold imports in the customs bonded warehouses. They will be able to import further gold only if they export 75 percent of that stored gold. PC Jeweller surged nearly 19 percent while Shree Ganesh Jewellery rose 11 percent. TBZ gained 7 percent.


The domestic currency depreciated to 59.76 per dollar today as against previous day's closing value of 59.72.

Globally, major Asian markets like Shanghai and Hang Seng gained 2 percent each while Nikkei rose 0.8 percent. European markets were up 0.3 percent at 04:30 hours IST.

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