Friday 5 July 2013

Sensex rises 155 points on sustained buying

The Indian stock markets continued to trade higher on Friday in the noon session.

At 12.39 p.m., the Sensex was trading up 155.25 points or 0.80 per cent at 19,566.09, while the Nifty was up 42.85 points or 0.73 per cent at 5,879.80.

Among the BSE sectoral indices, Oil & Gas, FMCG and Metal gained the most.

The top Sensex gainers during the session were Jindal Steel, RIL and HDFC Bank. The losers included GAIL, M&M, Coal India, Bharti Airtel, NTPC and ICICI Bank.

The Nifty and the Sensex opened in the green after European Central Bank surprised investors with an assurance that economic stimulus would not be slowly wound down. Asian bourses also opened in the green on Friday as a result.

The Nifty opened the day at 5,890 up 53 points, and the Sensex opened at 19,569, up 158 points.

A report from Espirito Santo Securities said: “With interest rates likely to fall further, greater intent from the Government, and some private sector players able to monetise their assets to strengthen balance sheets, we think India’s capex cycle has likely bottomed.

"Despite this, a recovery is at least 18 months away as private sector investments are moderating due to their overleveraged balance sheets and the government is in no position to pick up this slack.

"The risk of the government resorting to populist measures (potentially derailing the ‘reform momentum’ in the process) as 2014 elections approach also cannot be completely ruled out.”

Volatility was down one per cent and the volatility index India Vix was quoting at 18.40.

In the Asian markets, the Nikkei was up 1.71 per cent at 14,258.60 while the Hang Seng was up 1.78 per cent at 20,833.20.

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