Moneycontrol
Last Updated : Nov 16, 2018 05:49 PM IST | Source: Moneycontrol.com

An evening walk down Dalal Street | Sensex rises 197 pts amid positive global cues; Airtel up 9%

Telecom stocks hogged the limelight due to value buying. Bharti Airtel was biggest gainer among Nifty50 stocks, rising over 9 percent. Vodafone Idea rallied 16 percent and Tata Communications gained over 6 percent.

Moneycontrol News @moneycontrolcom

The market continued to gain momentum for second consecutive session on Friday, though it was a volatile day. The rally was driven by index heavyweights Reliance Industries and HDFC Group stocks. Positive global cues and rupee appreciation also boosted sentiment.

The 30-share BSE Sensex rallied 196.62 points to 35,457.16 and the 50-share NSE Nifty gained 65.50 points at 10,682.20.

The recovery and follow-up buying after Monday's sharp sell-off helped the market close higher for the week. The Sensex climbed 0.8 percent and Nifty rose 0.9 percent.

The upside is likely to continue in coming week as well, but overall it could be rangebound trade amid lack of domestic cues, experts said, adding the trade may largely be driven by global factors.

"Market was rangebound with a positive bias amid strong rupee and inflow of foreign funds. Broadly, the second quarter earnings were tad below the expectation of 15 percent YoY (Nifty50) and the market has largely factored a gradual downgrade in earnings in the second half of FY19," Vinod Nair, Head of Research, Geojit Financial Services told Moneycontrol.

While investors are looking for major triggers for a decisive up move above 10,700 level, stability in INR and oil prices will provide direction to the market despite election led uncertainty, he said.

The broader markets underperformed frontliners amid weak breadth today. The BSE Midcap index closed flat and Smallcap declined 0.4 percent. About three shares declined for every two shares rising on the BSE.

Telecom stocks hogged the limelight due to value buying. Bharti Airtel was biggest gainer among Nifty50 stocks, rising over 9 percent. Vodafone Idea rallied 16 percent and Tata Communications gained over 6 percent.

Reliance Industries, which owns Jio, also participated in the rally and was the lead contributor to Nifty's gains. The stock rose 2.8 percent.

Eicher Motors climbed over 3 percent as brokerage houses maintained buy call and expect the stock to return 14-17 percent over a period of one year despite likely competition from Jawa, the motorcycle launched by Mahindra & Mahindra on Thursday.

PSU banks were in action as Nifty PSU Bank index ended 2 percent higher after agencies told CNBC-TV18 that SBI sees full recovery of Rs 11,000 crore from Essar Steel this year. SBI itself gained 2 percent while Bank of India, OBC, Canara Bank, PNB and Bank of Baroda climbed 3-5 percent.

Yes Bank was biggest loser among Nifty50 stocks, falling 7 percent after former SBI chairman OP Bhatt resigned from the CEO selection panel.

HDFC (up 1.5 percent), HDFC Bank (1.5 percent), Bajaj Finance (2.12 percent) and ITC (1 percent) were other leading contributors to Nifty's gains. Infosys, IOC, JSW Steel, Maruti Suzuki, Indiabulls Housing Finance, Tata Steel and ONGC were down 1-4 percent.

Jet Airways continued its run for second consecutive day, rising 8 percent on top of 24 percent rally in previous session amid likely stake sale deal with Tata Sons.

Meanwhile, the rupee appreciated by 16 paise to trade at around 71.82 a dollar at the time of writing this article.

On the global front, Brent crude futures were up 1.5 percent at $67.61 a barrel on expected OPEC cuts, at the time of writing this article.

European markets - France's CAC, Germany's DAX and Britain's FTSE were marginally higher as Sterling stabilised after Brexit drama while Asian markets closed mixed with China's Shanghai Composite and Hong Kong's Hang Seng rising 0.3-0.4 percent.
First Published on Nov 16, 2018 04:17 pm
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