Oct 04, 2017 04:27 PM IST | Source:

Market closes higher for 4th straight day, Sensex up 170 pts; Nifty above 9900

Positive cues on the global markets, along with good cues domestically in terms of core sector data, among others helped the market.

Driven by strong global and domestic cues, the Indian market on Wednesday ended the session on a good note, but it was off the day’s high points.

Frontline indices have now ended higher for the fourth straight session after seeing corrective moves in the past couple of weeks. Positive cues on the global markets, along with good cues domestically in terms of core sector data, among others helped Sensex end 170 points higher, while the Nifty ended above 9920-mark.

After witnessing a flattish to positive opening, the market gained, possibly on hopes of positive announcements from the Reserve Bank of India’s (RBI) monetary policy committee (MPC) meeting’s outcome. Sensex had gained over 200 points intraday, while the Nifty had seen gains of almost 0.80 percent intraday.

The rally saw further strengthening after the central bank later made a pitch in the policy statement for recapitalisation of PSU banks. Stocks from the sector rallied, but soon cooled off as well. This led to the market cutting some of its gains as well.

At the close of market hours, the Sensex was up 174.33 points at 31671.71, while the Nifty was up 55.40 points at 9914.90. The market breadth was narrow as 1,461 shares advanced against a decline of 1,167 shares, while 129 shares were unchanged. Sun Pharmaceuticals, Reliance Industries and Tata Motors DVR gained the most on both indices, while Bharti Airtel, ICICI Bank and UPL lost the most.

In the broader markets, midcaps had a day of positive trade, but ended underperforming the benchmarks. Meanwhile, barring metals and IT, all sectoral indices ended the session with a green tick, with pharmaceuticals, energy and FMCG stocks being one of the top gainers.

Oil marketing companies (OMCs) ended with gains of 0.5-2 percent after the government reduced excise duties diesel. IOC, HPCL and BPCL ended with a green tick.

“The excise duty cut should be taken by the government positively by the markets but if you ask me personally – I am not in favour of the cut. The government should have been more hawkish in its diffidence in passing on price cuts,” said HDFC Securities Research Head Dipen Sheth told CNBC-TV18.

Shares of Natco Pharma locked at 20 percent upper circuit on the back of USFDA approval for Glatiramer Acetate Injection. The company's marketing partner Mylan's has received US Food and Drug Administration (FDA) approval for Glatiramer Acetate Injection in strengths of 40 mg/mL and 20 mg/mL. The 40 mg and 20 mg strengths injections are an AP-rated, substitutable generic version of Teva's Copaxone. The drugs are indicated for the treatment of patients with relapsing forms of multiple sclerosis (MS), a chronic inflammatory disease of the central nervous system.

Mahanagar gas was up around 1.6 percent after the company announced decision to hike rates. Increased the basic price of Compressed Natural Gas (CNG) by Rs 1.15 per kg and of domestic Pipelined Natural Gas (PNG) by Rs 0.95 per standard cubic meter (SCM) in the city. This will escalate the cost of CNG by Rs 42.63 per kg and PNG by Rs 25.69 per SCM (slab 1) and Rs 31.29 per SCM (slab 2). Earlier, the price of CNG was Rs 41.14 per kg and the cost of PNG was Rs 24.61 per SCM (slab 1) and Rs 30.21 per SCM (slab 2).

Reliance Communications ended with gains of over a percent after Moody’s said that the company’s credit rating does not change after Aircel talks fell through.

Among metals, gold prices edged up by Rs 50 to Rs 30,600 per 10 grams at the bullion market here today on seasonal buying by jewellers and a firming trend overseas.

Silver also recovered by Rs 250 to Rs 40,450 per kg due to increased offtake by industrial units and coin makers.

Traders said apart from pick up in buying by local jewellers triggered by festive season, a firm trend overseas as weakening dollar raised demand for the precious metals as safe-haven, mainly influenced sentiment here.

Globally, gold rose 0.37 per cent to USD 1,275.80 an ounce and silver by 0.81 per cent to USD 16.75 an ounce in Singapore.

“Nifty has reached closer to its resistance zone i.e. around 9950 and surpassing that hurdle won't be easy. We suggest keeping close watch on global developments and currency movement in absence of major trigger. Also, maintain stock specific trading approach and focus more on money management,” Jayant Manglik, President, Retail Distribution, Religare Securities, said in a statement.
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