Bank, oil & gas stocks weigh on indices but market still ends at record highs
Benchmark indices consolidate after a gap up opening, which pushed the market to fresh intraday highs. Two-wheeler stocks ruled the charts, while Bharti Airtel sees profit booking
A day after the market soared to record all-time highs, the Street on Thursday witnessed consolidation and ended the session on a flat note as banks and energy sectors dragged the indices. But the market still ended up at fresh closing highs.
The flat closing was preceded by fresh surge to intraday highs, driven by positive global cues and earnings trend on the domestic front.
The Sensex closed up 2.81 points at 30250.98, while the Nifty ended higher by 15.10 points at 9422.40. The market breadth favoured the declines as 1,246 shares advanced against a fall of 1,588 shares, while 169 shares were unchanged.
"Weak market breadth showed that investors were looking for fresh cues to chase prices higher. But index heavyweights helped Nifty positive, while rate sensitives also edged higher on the back of upbeat monsoon forecast. But a restraint was visible, especially with inflation and production figures expected tomorrow,” said Anand James, Chief Market Strategist, Geojit Financial Services in a statement.
Reversing two days of gains, gold prices declined by Rs 265 to Rs 28,400 per 10 grams at the bullion market today on weak trend overseas and fall in demand from local jewellers.
Silver also drifted lower by Rs 205 to Rs 38,200 per kg due to reduced offtake by industrial units and coin makers.
Among sectors, midcaps ended absolutely flat, while autos gained around a percent. However, banks and energy were a drag on both the indices. The Nifty Bank ended at the lowest point of the day.
On the top gainers and losers, two-wheeler stocks topped the chart of gainers, along with Zee Entertainment, while Bharti Airtel and oil and gas stocks dragged the indices.
Hero MotoCorp was up 4 percent, while Eicher Motors surged 6 percent as investors could have positively reacted to the companies’ results. The rally spilled over to Bajaj Auto as well, which closed 3 percent higher.
Investors were also bullish on Zee Entertainment as the stock surged 6 percent on the back of steady results. Here too, the rally spilled on to another media stock, Sun TV, which ended 5 percent higher.
Meanwhile, Bharti Airtel witnessed profit booking by investors after the stock gained 8 percent during the previous session. The telecom major closed over 2 percent lower.
Major lenders Axis Bank (-1.6 percent), Yes Bank (-1.23 percent) and HDFC (-0.71 percent) dragged the indices, while GAIL and ONGC fell 2 percent.
Going forward, experts still remain upbeat about the market gaining strength.
“The market is taking a very measured move past the 9,000-mark, which is a positive. From this point, it is likely to head significantly higher," Gautam Shah, Associate Director & Technical Analyst, JM Financial told CNBC-TV18 in an interview. The best is yet to come and we are not in a bubble territory, he added.
So, how should one trade the market now?
"The recent update on monsoon from the IMD has raised the hopes of better economic growth this year which in turn will push the markets higher. Participants should keep their positions align to the trend and maintain a balanced portfolio. Apart from our preferred sectors, we feel agri. and consumption based stocks may gain traction in near future," Jayant Manglik, President, Retail Distribution, Religare Securities said in a statement.