Sensex gains in Mahurat trade, Bank Nifty up 1%; FMCG weak

Moneycontrol Bureau
Live Market Commentary 

7:10 pm: Gold today staged a modest rebound after its uninterrupted six-day losing streak while silver failed to glitter during the Muhurat session at the domestic bullion market here, reports PTI.

"Jewellery stockists and retail investors made token purchases of gold to mark the beginning of the new Hindu Samvat year 2070," a bullion trader said.

The industrial metal- silver- dropped owing to sluggish demand as well as lack of buying support.

6:40 pm Market outlook: It is likely that the Nifty may touch 7,500 by next Diwali, BSE member Ramesh Damani said. Severe under-ownership of Indian equity by local and technical factors suggest the market is headed higher not lower, he told CNBC-TV18 in an interview.

However, fundamentals remain weak and the biggest over-hang for the market is US Federal Reserve’s decision on QE tapering. The market has not discounted the impact of QE tapering, so one cannot rule the possibility of the Nifty slipping to 5500 by next Diwali, he cautioned.

ITC and Hindustan Unilever (HUL) hold core position in his portfolio. He is also invested in Godrej Group Companies - Godrej Consumer Products, Godrej Industries and Godrej Properties.

6:30 pm Market check: The Sensex is up 63.14 points at 21259.95, and the Nifty gains15.25 points at 6322.45. About 1011 shares have advanced, 250 shares declined, and 58 shares are unchanged.

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The market has opened on a good mood in Mahurat trading. The Sensex is up 80.63 points at 21277.44, and the Nifty up 24.85 points at 6332.05. About 414 shares have advanced, 79 shares declined, and 11 shares are unchanged.

Stock specifically, BHEL, Tata Steel, Sun Pharma, Tata Power and SBI. Top losers in the Sensex are HDFC, Coal India, HDFC Bank, M&M and Dr Reddy's Labs.

Sanju Verma, group chief executive officer, Violet Arch feels the market is currently polarised between smart money and hot money. She believes that 6400 or 6500, at those levels the market will tire itself out and 6400 looks likely in near term.

However, Raamdeo Agarwal, Joint MD, Motilal Oswal Financial Services sees correction in the middle of November. Now the mood is building up for state election results, he adds.

Nearly Rs 5,000 crore worth of shares were bought by foreign institutional investors during the week while the month gone by saw FII buying of Rs 18,000 crore, highest since February 2013.