Friday 14 October 2016

Sensex, Nifty ends flat; Oil & Gas, Capital Goods stocks lead

The Indian stock market recovered from the previous session's multi-month low and closed marginally higher with financials gaining on the prospect of further rate cuts after inflation cooled to a 13-month low in September.

Markets were unable to hold on to their gains as selling pressure in the telecom, IT, technology and consumer discretionary stocks dragged indices lower. On the other hand, oil & gas, capital goods, energy, industrial, realty and banking stocks ended with gains.

Finally, the BSE Sensex ended with a gain of 30 points at 28,507. The BSE Sensex opened at 27,712, touched an intra-day high of 27,764 and low of 27,548.

The NSE Nifty closed with a gain of 10 at 8,583. The NSE Nifty opened at 8,594 hitting a high of 8,604 and low of 8,549.80.

Sentiments got boosted after India’s WPI in the month of September 2016 softened to 3.57% compared to 3.74% in the previous month . Also, some support was gained with retail inflation hitting a 13-month low, aided by lower food prices especially those of vegetables. This is the first time in this financial year that the overall CPI inflationhas fallen below the Reserve Bank of India’s inflation target of 5% by March 2017.

Meanwhile, Finance Minister Arun Jaitley has said that the absence of reforms in infrastructure and power sectors by the previous government created huge non-performing assets (NPAs) in these core segments.

Among the Nifty stocks, GAIL, L&T, Tata MotorsDVR, Tata Motors, RIL, BPCL, Power Grid, UltraTech Cement and TCS were the gainers whereas Zee, Bharti Infratel, Infosys, HUL, Eicher Motors and Idea Cellular were among the losers today.

The India VIX (Volatility) index was down 3.48% at 14.8875. Out of 1,398 stocks traded on the NSE, 473 declined and 879 advanced today.

The BSE Midcap and Smallcap indices ended higher by 0.80%.

The rupee was trading up 19 paise at 66.74 per US dollar.

On the global front, Asian markets closed mixed on Friday, with investors assessing price increases in China and the possibility of an interest rate hike in the U.S. later in the year. Japan’s Nikkei and Hong Kong’s Hang Seng gained over 0.50%. China’s Shanghai Composite closed higher.

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