Wednesday 18 December 2013

Nifty hovers around 6,200; Bank Nifty up 2%

Benchmark share indices were up over 1% each in noon trades led by banks

Benchmark share indices were up over 1% each in noon trades led by banks after the Reserve Bank of India kept key policy rates unchanged, despite calling current inflation too high, citing the prospect of easing retail prices and its concerns about the weak domestic economy.

At 1:05PM, the 30-share Sensex was up 236 points at 20,848 and the 50-share Nifty was up 75 points at 6,214.

The rupee was off highs in the afternoon trade after the initial euphoria in the market.

The rupee was quoting at Rs 61.92 compared with previous close of Rs 62.02 per dollar. The rupee had opened at Rs 61.83 and and touched a high of Rs 61.78 in morning trade due to rise in equities.

Currency dealers see the rupee weakening during the day due to dollar demand by oil marketing companies. Besides that the outcome of Fed's meet is also awaited.

Asian markets were trading higher with Japan's benchmark index Nikkei leading the gains on reports that the Prime Minister may shortly unveil plans to boost the economy. The benchamrk Nikkei ended up 2% at 15,588. Hang Seng was up 0.4%. Shanghai Composite and Straits Times were down 0.1% each.

The BSE Bankex was the top gainer among the sectoral indices on the BSE up 2% followed by Capital Goods, Realty, Power, Oil and Gas and Auto indices.

Index heavyweight Reliance Industries was up 2.2% contributing the most to Sensex gains followed by financials.

HDFC was up 2.7% on hopes that the mortgage lender may see growth in home loans as banks are likely to hike rate on home loans.

Capital Goods shares L&T and BHEL were up 3% each on hopes that pick up in investment activity would help revive growth in new order inflows.

Bank shares firmed up on hopes that credit growth would continue to remain steady on the back of stable interest rates. ICICI Bank, SBI, HDFC Bank were up 0.6-3% each.

Auto shares Bajaj Auto, M&M and Hero MotoCorp were up 1-3% each on hopes that volume growth would continue on steady interest rates on auto loans.

Among other shares, Astral Poly Technik has surged 8.5% to Rs 320, also its record high, extending its past four days rally on the Bombay Stock Exchange (BSE). On December 12, the company said it has been awarded Business Standard Star SME (small and medium enterprises) of the year 2013. The growth story of the company with its continuous expanding and building its production capacity impressed by the Jury to win this award, Astral Poly Technik said in a regulatory filing.

In the broader market, the BSE Mid-cap index was up 1.1% and the Small-cap index was up 0.8%.

Market breadth was strong with 1,239 gainers and 840 losers on the BSE.

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