Benchmark index BSE Sensex closed at 39,276, up 370 points, or 0.95% on Tuesday. It hit a record high of 39,364 during the session. Nifty scaled the 11,800 level for the first time, surpassing its previous high of 11,761. Nifty closed at 11,787. The rally was largely driven by the positive trade data, IMD forecast for a near normal monsoon and sustained FII inflows. The country’s exports rose to a five-month high of 11% in March to $332 billion.
Indian benchmark indices opened higher on Tuesday following positive trade data and IMD monsoon forecast. The Sensex riose over 200 points and Nifty 50 was trading above 11,700. Stock-specific action will be in focus as investors will look out for the March-quarter earnings of individual stocks. Vedanta, Coal India, ICICI Bank, Bharti Infratel, and IOC gained the most on Nifty, while Infosys, Tata Steel, Tata Motors, HUL, and HDFC Bank fell the most on the index.
Benchmark indices started the week on a positive note driven by banks, auto, metals and select technology stocks. Nagaraj Shetti, Senior Technical & Derivative Analyst, HDFC Securities said the underlying short term trend of Nifty continues to be positive. Nifty closed at 11,690.35 on April 15. According to the Pivot charts, the key support level is placed at 11,657.47, followed by 11,624.63. If the index starts moving upward, key resistance levels to watch out are 11,713.87 and 11,737.43. Maximum Call open interest of 26.29 lakh contracts was seen at the 12,000 strike price. This was followed by 11,800 strike price.
Sudip Bandyopadhyay, Group Chairman at Inditrade Capital said he expects the Indian markets will attract a lot more liquidity in the coming days. For next 15-20 days, corporate results will continue to drive the markets and post that, the election result, he said. That will be a period of extreme volatility. But overall, Indian markets will attract a lot more liquidity and will move up over the next six to nine months, he said.
The BSE Sensex closed 139 points higher at 38,905.84, whereas Nifty settled 47 points up at 11,690.35 led by gains in auto, IT and banking stocks. Most fertilizer stocks gained after Indian Meteorological Department (IMD) predicted near-normal rains during April-September monsoon, allaying concerns over rise in inflation. Moreover, positive cues from US-China trade talks, strong Chinese export data and hopes of better fourth-quarter earnings kept mood positive.
Manav Chopra Head Research- Equity, Indiabulls Ventures, expects the auto sector to show relative outperformance in the coming few weeks. His top picks include M&M, Escorts and Maruti which can give a return of 10-15%. ITC and HUL can see a short-term rally of 5-8%. The Bank Nifty is likely to rally towards 30,650-30,950 levels and he expects SBI, Axis Bank and Canara Bank to see an upside of 8-10% from the current levels. Any decisive close above the immediate resistance level of 11, 700 that could trigger a rally towards 11,850-12,250, Manav said.
The market next week will be largely driven by the fourth quarter earnings reports, while macroeconomic data, political pulse and global sentiments are also expected to play their part. The market will be closed on Wednesday on account of Mahavir Jayanti and on Friday for Good Friday next week. Wipro, Reliance Industries and HDFC Bank are among the companies that will announce their fourth quarter earnings on Tuesday, Thursday and Saturday, respectively. The second phase of voting is due on Thursday.
Six of the 10 most valued Indian firms suffered a combined erosion of Rs 42,827.39 crore in market valuation last week. IT major TCS was the biggest loser with a decline of Rs 14,146.5 crore in market cap. While ITC, HUL, Kotak Mahindra Bank and ICICI Bank made gains in their market cap for the week ended Friday, Reliance Industries Ltd (RIL), TCS, HDFC Bank, HDFC, Infosys and SBI finished with losses.
Investors' wealth surged Rs 8.83 lakh crore during financial year 2018-19 driven by a rally in the broader market. The BSE benchmark jumped over 17% or 5,704 points during 2018-19. The BSE Sensex closed at 38,672.91 on Friday, the last trading day of the fiscal. The market capitalisation of BSE-listed companies rose by Rs 8,83,714.01 crore to Rs 1,51,08.711.01 crore.