Benchmarks log fresh record highs; Nifty surpasses 8,500 mark

Extending their northward journey for third consecutive session, boisterous benchmarks once again logged new record highs with Nifty surpassing its crucial 8,500, while Sensex ending tad below the crucial 28,500 mark. The markets, despite some choppiness in noon deals, traded jubilantly throughout the session and ended at their fresh record high levels as sentiment was buoyed after the prospect of further policy stimulus in China and Europe whetted the risk appetite globally, while the capital inflows on expectations of further economic reforms by the government as the Winter Session of Parliament begins today too boosted the trading sentiment.

Meanwhile, Finance Minister Arun Jaitley stated that Budget 2015-16 would unveil “a whole set of second-generation reforms” as well as reforms that require undoing. He pointed that a rational and reasonable tax regime is undoing thing. Some procedure changes in the land (acquisition) law is an undoing, with government is all set to table insurance amendment Bill and Goods and Services Tax (GST) Bill in the ensuing winter session of parliament. Also, the Finance Minister expressed its intent to embrace a benign, predictable and pragmatic tax policy and said that unsustainable tax demands will earn the country a bad name in the comity of global investors.

Buying got intensified in last leg of trade with European markets trading in the green terrain in early deals on Monday after the European Central Bank has indicated that it would step up asset purchases to boost the euro zone economy. Asian markets ended mostly in the green after China’s central bank on Friday unexpectedly cut its key interest rates for the first time in more than two years in a bid to boost sagging growth momentum. The People’s Bank of China reduced the one-year lending rate by 40 basis points to 5.6 per cent.

Back home, sentiments remained up-beat on report that foreign portfolio investors (FPIs) bought shares worth a net Rs 122.50 crore during the previous trading session on November 21, as per provisional data. Moreover, traders have overlooked the quarterly survey by industry body Ficci, which has suggested moderation in manufacturing growth in the October-to-December quarter as compared to the July-to-September period of 2014-15. Meanwhile, rally in metal counter too supported the sentiments and stocks like Tata Steel, Hindalco Industries, Sesa Sterlite, Jindal Steel, SAIL etc. edged higher following the unexpected rate cut by China.

The NSE’s 50-share broadly followed index Nifty rose by over fifty points to end above the psychological 8,500 support level, while Bombay Stock Exchange’s Sensitive Index -- Sensex surged by around one hundred and seventy points to finish near its psychological 28,500 mark. Broader markets, however, underperformed benchmarks and ended the session mixed. The market breadth remained in favor of decliners, as there were 1,332 shares on the gaining side against 1,732 shares on the losing side while 125 shares remain unchanged.

Finally, the BSE Sensex surged by 164.91 points or 0.58%, to 28499.54, while the CNX Nifty soared by 52.80 points or 0.62% 8,530.15.

The BSE Sensex touched a high and a low of 28541.96 and 28394.48, respectively. The BSE Mid cap index was up by 0.07%, while the Small cap index was down by 0.06%.

The top gainers on the Sensex were Tata Power up by 4.14%, Hindalco up by 3.37%, Infosys up by 3.08%, Tata Steel up by 3.00% and ICICI Bank up by 2.25%. On the flip side, Cipla down by 1.46%, Reliance Industries down by 1.29%, ONGC down by 0.76%, Tata Motors down by 0.73% and Bharti Airtel down by 0.69% were the top losers in the index.

On the BSE Sectoral front IT up by 1.86%, Metal up by 1.64%, Realty up by 1.62%, TECK up by 1.40% and Bankex up by 1.18% were the top gainers, while Oil & Gas down by 0.73%, Healthcare down by 0.45% and FMCG down by 0.25% were the only losers in the space.Meanwhile, reviewing the performance of the new government during the first six month of its functioning, India Inc has stated that the new dispensation has initiated fundamental reforms that have set the stage for revival of economic growth.

FICCI President Sidharth Birla has stated that measures taken by new government to improve ease of doing business and attract investments in manufacturing and infrastructure will facilitate revival of capex cycle, accelerate economic activity, create large-scale employment and thus drive overall growth. Further, he added that real impact of these reform measures on the economy should be visible in the next 12-18 months.

PHD Chamber President Sharad Jaipuria asserted that the government has actively taken up the agenda of rejuvenation of India’s growth story by focusing on economic growth, taming price pressures, facilitating industrial and business environment and simplifying the policies and procedures. Government's vision to reduce administrative bottlenecks and provide conductive environment to the businesses will provide impetus to domestic economic growth in coming future. CII Director-General Chandrajit Banerjee has asserted that recent government decisions like increasing railway fares, raising FDI limits in defence, real estate and insurance, attracting FDI in railways and reform fuel price regime have all renewed the investors’ confidence. 

According to the industry, early roll-out of reforms like the Goods & Services Tax (GST), changes in the Land Acquisition Act, passage of the Insurance Bill, boosting infrastructure, and augmenting the manufacturing base will be instrumental in refueling growth. On fiscal deficit front, the Industry is of the view that expediting disinvestments to shore up revenues and rationalising subsidies will be key to restrict the fiscal deficit within the budget target of 4.1% of GDP.

The CNX Nifty touched a high and low of 8,534.65 and 8,490.80 respectively.

The top gainers on Nifty were DLF up by 5.59%, Jindal Steel & Power up by 4.44%, Tata Power Company up by 4.31%, Infosys up by 3.13% and Tata Steel up by 3.02%. On the flip side, Power Grid Corporation of India down by 2.46%, Cipla down by 1.59%, Reliance Industries down by 1.39%, ACC down by 0.92% and Sun Pharmaceuticals Industries down by 0.83% were the top losers.

European markets were trading in green, France’s CAC 40 was up by 0.89%, Germany’s DAX was up by 0.66% and United Kingdom’s FTSE 100 was up by 0.01%.

All the Asian equity benchmarks barring, Straits Times, ended higher on Monday as sentiments remained up-beat by an unexpected rate cut announcement from the Chinese central bank last Friday. The People’s Bank of China cut one-year benchmark lending rates by 40 basis points to 5.6 percent. Moreover, China’s leadership and central bank are ready to cut interest rates again and also loosen lending restrictions, concerned that falling prices could trigger a surge in debt defaults, business failures and job losses. Recovery in commodity prices and comments from the European Central Bank President Mario Draghi that more stimulus is likely from the ECB to spur eurozone economic growth are also aiding sentiment. The Japanese market remained shut for the trade today for Labour Thanksgiving Day Holiday.