Markets end at all time closing high levels; Nifty surpasses 8,150 mark

Boisterous benchmarks once again showcased an enthusiastic performance, by rallying around a percentage point in October F&O expiry session. After a cautious start sentiments turned jubilant and there appeared not even an iota of profit booking in the session as the benchmarks managed to fervently gain from strength to strength, as investors continued their hunt for fundamentally strong stocks. Frontline indices not only extended their rally for third straight session but also recorded their all time closing high, settling comfortably above their crucial 8,150 (Nifty) and 27,300 (Sensex) bastions as investors took to hefty across the board buying.

Sentiments remained up-beat as sentiments from report that foreign investors were net buyers in equities to the tune of Rs 786 crore on Wednesday, as per provisional stock exchange data. Sentiments also got some support after Finance Minister Arun Jaitley has said that India has the capacity to grow at 8-9 per cent and good governance would make economic expansion ‘more exuberant’.

On the global front, Asian stocks ended mixed, though the dollar surged to a three-week high versus the yen after the U.S. Federal Reserve ended its massive quantitative easing programme, as expected, but laced its economic assessment with a tinge of hawkishness. European bourses opened higher on Thursday, helped by encouraging corporate earnings, but quickly turned negative.

Back home, there was broad based buying witnessed in the markets and apart from the blue chips, the broader markets too participated strongly in the rally. Moreover, better-than-expected earnings from ACC, Maruti Suzuki, Yes Bank and ICICI Bank too soothed the sentiments. ACC registered 69.57% jump in its net profit at Rs 204.91 crore for the September quarter, while Maruti Suzuki India’s net profit rose 28.69% to Rs 862.54 crore on 18.24% growth in total income to Rs 12497.03 crore in Q2 September 2014 over Q2 September 2013. Meanwhile, Yes Bank posted a rise of 30.01% in its net profit at Rs 482.54 crore for the quarter ended September 30, 2014, while ICICI Bank has reported a rise of 15.18% in its net profit at Rs 2709.01 crore for the quarter ended September 30, 2014.

Rally in realty stocks too aided the sentiments after the government has relaxed the norms for allowing foreign direct investment (FDI) in the construction development sector.  The move will boost affordable housing projects and smart cities across the country. Stocks related to software and technology counters too remained on buyers’ radar after Indian rupee fell to a two-week low against the dollar on Thursday as the greenback posted gains after the US Federal Reserve statement at the conclusion of its meeting was seen as showcasing more confidence about the US economy prospects.

The NSE’s 50-share broadly followed index Nifty rose by around eighty points and ended above the psychological 8,150 support level, while Bombay Stock Exchange’s Sensitive Index -- Sensex surged by around two hundred and fifty points to finish above the psychological 27,300 mark. Broader markets too traded with traction throughout the trade and ended the session with a gain of around a half a percent. The market breadth remained in favor of advances, as there were 1,586 shares on the gaining side against 1,334 shares on the losing side while 122 shares remain unchanged.

Finally, the BSE Sensex surged by 248.16 points or 0.92%, to 27346.33, while the CNX Nifty soared by 78.75 points or 0.97% to 8,169.20.

The BSE Sensex touched a high and a low of 27390.60 and 27088.65, respectively. The BSE Mid cap index was up by 0.66%, while the Small cap index was up by 0.34%.

The top gainers on the Sensex were Reliance Industries up by 2.94%, Hindalco up by 2.39%, TCS up by 2.21%, GAIL India up by 1.93% and Infosys up by 1.72%. On the flip side, Sesa Sterlite down by 1.12%, Cipla down by 0.77%, Mahindra & Mahindra down by 0.67%, Tata Power down by 0.66% and Hero MotoCorp down by 0.37% were the top losers in the index.

On the BSE Sectoral front Realty up by 3.44%, IT up by 2.04%, TECK up by 1.77%, Oil & Gas up by 1.65% and Consumer Durables up by 1.59% were the top gainers, while there were no losers in the space.

Meanwhile, optimistic over the improving economic condition, Finance Minister Arun Jaitley has stated that India has the potential to grow at 8-9 percent annual rate. Highlighting that good governance would remain a key for economic growth, Arun Jaitley stressed that if the government follows the best practices and displayed the highest standards of good governance, Indian economy can get back on to high growth path.

Finance Minister also highlighted the importance of audit and said that accountability and transparency are essential as it helps in good governance. After registering an average growth rate of 8% during FY08-FY12, Indian economic growth had slowed down to below 5% over the last two financial years. Factors like high interest rate, stubborn inflation, low investments and slow execution of infrastructure projects have impacted country’s economic growth.

However, Indian economy has shown signs of nascent recovery during the first quarter of current fiscal. India’s economy expanded at its fastest pace in more than two years by 5.7% during first quarter of current fiscal as compared to 4.7% growth recorded in same quarter last year.

The CNX Nifty touched a high and low of 8,181.55 and 8,085.20 respectively.

The top gainers of the Nifty were HCL Technologies up by 4.70%, DLF up by 4.23%, Tech Mahindra up by 3.42%, IndusInd Bank up by 2.82% and Reliance Industries up by 2.77%. On the other hand, Cairn India down by 1.50%, Ambuja Cements down by 1.37%, Sesa Sterlite down by 1.00%, Mahindra & Mahindra down by 0.84% and Cipla down by 0.83% were the top losers.

European markets were trading in red, France’s CAC 40 was down by 0.49%, United Kingdom’s FTSE 100 was down by 0.80% and Germany’s DAX was down by 0.95%.

Asian markets ended mixed on Thursday, with Japanese stocks extending yesterday’s gain, as the yen fell after the Federal Reserve stated that it would end its bond-buying program. Indonesia’s central bank has instructed private firms to hedge more of their foreign debt to limit growth of offshore borrowings and reduce risks to the rupiah. Indonesia’s top fund managers have boosted cash holdings to the highest levels in three months amid concern President Joko Widodo will fail to push through policies to revive growth in Southeast Asia’s largest economy. South Korean Industrial Production rose to a seasonally adjusted annual rate of -1.9%, from -2.8% in the preceding month. The World Bank has warned that China’s current focus on meeting official growth target will hinder its reform to rebalance growth toward a more sustainable model. The bank acknowledged China has made progress this year in implementing reforms to restructure its economy, but challenges remain. China’s consumer sentiment tumbled to a three-year low in October as consumers downgraded their outlook on employment, housing and personal finances, a private report showed. The Westpac MNI China Consumer Sentiment Index fell 2% to 110.9 in October from 113.2 in September.